Legacy Tax & Resolution Services

State Accepts Release of Lien to Allow Refinancing to Pay State Debt in Alamogordo, NM

State Accepts Release of Lien to Allow Refinancing to Pay State Debt in Alamogordo, NM   IRS Release of Lien – 03-19-2012 Taxpayer Situation: Taxpayers owed the State of New Mexico Taxation and Revenue Department for the tax year 2009.  The taxpayers were current on all tax returns. Resolution Outcome: Legacy Tax & Resolution Services successfully negotiated an […]

Tax Relief for Victims of 2020 Natural Disasters

Article Highlights: Legislation for Major Disasters  Definitions  Qualified Disaster Distributions  Re-Contributing Withdrawals for Home Purchases  Retirement Plan Loans  Loss Limitations, Revised  Relief for Non-Itemizers  Employee Retention Credit  Other Disaster Area Tax Issues  Most of us will always remember the year 2020, as much as we may like to forget it. On top of the COVID-19 […]

IRS Released Wage Garnishment in Moriarty, NM

IRS Released Wage Garnishment in Moriarty, NM   IRS Wage Garnishment Release and Installment Agreement – 01-27-2012 Taxpayer Situation: The taxpayer owed the IRS for tax years 2006-2010, and the IRS was taking over 60% of his salary. He was desperate because he could not pay his bills, and the IRS would not release the wage garnishment.  […]

IRS Reverses Full Denial of Child Tax Credit Claim in Alamogordo, NM

IRS Reverses Full Denial of Child Tax Credit Claim in Alamogordo, NM   IRS Reverses Full Denial of Refund Claim– 11-21-2015 Taxpayer Situation: The taxpayer filed a return for 2014 requesting the Child Tax Credit.  The IRS sent CP79 fully denying the credit and requested information to support the dependent exemption.  The taxpayer tried to resolve […]

COVID-19 Resource Guide: Taxpayers & Small Businesses

During the coronavirus pandemic, it’s our goal to continue supporting the health, safety, and prosperity of our clients in any way we can. In this post, we’ve compiled some key resources for taxpayers and small business owners trying to stay up to date on the latest accurate information from trusted news sources. If you have […]

Solar Tax Credit Extended for Two Years

Article Highlights: Credit Amounts  Deceptive Advertising  Refundability  Worth the Cost?  Qualifying Property  When Is the Credit Available?  Who Gets the Credit  Multiple Installations  Battery  Installation Costs  Basis Adjustment  Association or Cooperative Costs  Mixed-Use Property  Newly Constructed Homes  Utility Subsidy  A federal tax credit for the purchase and installation costs of a residential solar system has […]

Tax Deductions Without Itemizing

Article Highlights: Charitable Contributions  Educator Expenses  Performing Artist Expenses  State and Local Government Officials’ Expenses  Health Savings Account Contributions  Moving Expenses for Members of the Armed Forces  Student Loan Interest Deduction  Tuition and Fees Deduction  Deduction for Early Withdrawal of Savings  Deductible Part of Self-employment Tax  Self-employed Health Insurance Deduction  Alimony Deduction (pre-2019 divorce agreements)  […]

Special Rules Apply to 2020 EITC and Child Credit

Article Highlights: Employment (Earned) Income  Earned Income Tax Credit (EITC)  Child Tax Credit (CTC)  2019 or 2020 Earned Income  Credit Qualifications  Because of the pandemic, many individuals have seen their employment (earned) income plummet. In that situation, two very important tax credits, the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), which […]

Understanding Tax-Filing Status

Article Highlights: Single  Married Filing Jointly  Surviving Spouse  Married to a Nonresident Alien  Head of Household  Married Filing Separate  Filing status is determined on the last day of the year and most often is based on marital status. The two most prevalent are as follows: Single – Unmarried individuals without dependents.  Married Taxpayers Filing Jointly (MFJ) – […]