How Long Should You Keep Old Tax Records?
Article Highlights: The general statute: 3 years Longer durations in some states Fraud, failure to file and other issues that extend the statute’s duration Keeping the actual return Ordering copies of previously filed returns This is a common question: How long must taxpayers keep copies of their income tax returns and supporting documents? Generally, individuals […]
IRS Accepts Installment Agreement in Tucumcari, NM
IRS Accepts Installment Agreement in Tucumcari, NM IRS Installment Agreement – 05-21-2019 Taxpayer Situation: Taxpayer owed the IRS for tax years 1998-2013, 2015-2016. The taxpayer was current with the filing of all his tax returns. Resolution Outcome: Legacy Tax & Resolution Services successfully negotiated an Internal Revenue Service payment agreement for a client in Tucumcari, NM. Legacy […]
Congress Introduces Tax-Preparer Regulation Legislation
Article Highlights PTIN Requirements CPAs, EAs, and Attorneys State Regulations American Families Plan Taxpayer Protection and Preparer Proficiency Act Anyone preparing a tax return for compensation must have a PTIN issued by the IRS, but there are no requirements associated with obtaining a PTIN—no advance training, no continuing education, and no ethical standards to abide […]
State Accepts Replacements of Substitute for Returns in Las Vegas, NM
State Accepts Replacements of Substitute for Returns in Las Vegas, NM IRS Replacement of Substitute for Returns– 03-17-2019 Taxpayer Situation: As a result of the taxpayer’s failure to file returns, the State of New Mexico Taxation and Revenue Department filed several Substitute for Returns and assessed the taxpayer with $28,995 in over-inflated additional taxes. Resolution Outcome: Legacy Tax […]
Dependents or Qualifying Relatives Deductions and Credits
On December 22, 2017, The Tax Cuts and Jobs Act was signed into law. The information in this article predates the tax reform legislation and may not apply to tax returns starting in the 2018 tax year. You may wish to speak to your tax advisor about the latest tax law. This publication is provided […]
IRS Accepts Revised Audit Outcome in Socorro, NM
IRS Accepts Revised Audit Outcome in Socorro, NM IRS Revised Audit Outcome – 01-22-2019 Taxpayer Situation: The taxpayer was initially audited for 2016 and used her existing tax preparer to represent her in the audit. The tax preparer assured her that he could handle this. Unfortunately, the tax preparer had very little audit representation experience, […]
Minimizing Tax on Social Security Benefits
Article Highlights: Income as a Factor Filing Status as a Factor 85% Maximum Taxable Base Amounts Deferring Income Maximizing IRA Distributions Gambling Gotcha Whether your Social Security benefits are taxable (and, if so, the amount that is taxed) depends on a number of issues. The following facts will help you understand the taxability of your […]
Back to School? Tax Breaks May Help to Pay the Cost!
On December 22, 2017, The Tax Cuts and Jobs Act was signed into law. The information in this article predates the tax reform legislation and may not apply to tax returns starting in the 2018 tax year. You may wish to speak to your tax advisor about the latest tax law. This publication is provided […]
Getting Married and Related Tax Issues
Article Highlights: SSA Name Change IRS Address Change Postal Service Address Change Tax Withholding Tax Filing Status Marrying A Non-resident Alien Joint and Several Liability Beware of Tax Scams Most weddings planned for 2020 were delayed because of COVID, causing a big upswing in the number of weddings in 2021. Although tax issues are the […]
Tax Ramifications of Disposing of a Vehicle
Article Highlights: Trading in a Vehicle Selling a Vehicle Gifting a Vehicle Donating a Vehicle to Charity If you are buying a new car, are you wondering what to do with the old one? You actually have a number of options, some of which have tax implications and some of which don’t. These options include […]