Golden Tax Relief February 2018

Discovering True ‘Grit’

If you’ve ever been told you won’t succeed because you lack talent, bring a copy of “Grit” to your next meeting. While teaching high school math, author Angela Duckworth noticed some of her highest-achieving students weren’t the ones with the highest IQs, while some of her “smartest” students weren’t doing all that well in class. “Why?” she wondered. She followed her curiosity to Penn State’s psychology program. There, she studied several demographics, including cadets at West Point, young teachers, and sales representatives. After numerous psychological studies, Duckworth discovered that “grit” was the common denominator in successful people. Duckworth defines grit as “passion and perseverance for very long-term goals.” People who display grit don’t start a project

and abandon it a month later. They devote themselves to an overarching goal that drives everything they do. She explained that someone who practices grit goes through life like a marathon, not a sprint.

transparent about in her book. She says those who aren’t born with grit can develop it in four simple steps. First, identify an interest that can blossom into a passion. Second, practice that passion, a lot . Third, develop the belief that your passion has purpose. While it’s not an overnight transformation, these guidelines can at least give us hope, which is the fourth step: Hold on to hope that you can succeed. Our biggest takeaway from “Grit”? Look at failures as milestones on the journey to success. Getting gritty means failing and learning from it. Any of us can get gritty if we’re willing to put in a little elbow grease.

Perhaps most instructive is Duckworth’s equation (she was a math teacher, after all):

Talent x effort = skill. Skill x effort = achievement.

“Effort counts twice” could be the battle cry of grit. Gritty people are willing to put in the extra effort to achieve their goals, and that’s what helps them reach their goals if they don’t have innate talent. While this provides a strong case that those born with grit will succeed, grit doesn’t factor luck and opportunity into the equation, something that Duckworth is

Understanding CNC Status An Avenue for Relief

relief so you can put your finances in order and get square with the IRS. WHAT CNC DOES When the IRS approves you or your business for CNC status, they are acknowledging that your tax debt cannot be collected at the present time. This does several important things. The IRS will release any levies it had placed on your wages and pause any collection actions it was taking against you. In short, you get a reprieve from the federal government’s most aggressive tactics, allowing you to get your ducks in a row. WHAT CNC DOES NOT DO Keep in mind, CNC status isn’t a magic wand. It neither forgives nor reduces your tax debt; it only kicks the can a little farther down the road. While the IRS collection actions may be paused, your tax debt will still accrue penalties and interest. Thus, other avenues — such as seeking an offer in compromise — may be a better option for those who can afford to make regular

payments. But if your financial situation is dire, the relief CNC status can offer is often your best option. HOW TO APPLY Attaining CNC status requires you to provide detailed information about your finances. You will need to provide the IRS with all the information you can about your monthly income and expenses, so be sure to hang on to pay stubs and receipts. This information will go into IRS form 433, the “Collection Information Statement.” There are three versions of form 433: one for businesses, one for individuals, and a third for self-employed persons. Are you unsure whether CNC status is right for you? An experienced tax advisor can review your situation and give you a detailed picture of the options you have available. Don’t send yourself or your business into financial ruin trying to get square with the IRS. Reach out to the professionals at Golden Tax Relief today!

Currently Not Collectible (CNC) is a status used to give struggling taxpayers options. When paying your tax debt would put you in financial hardship, seeking CNC status can be a viable strategy. It offers temporary

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