Landmark Tax Group - December 2020

Landmark Tax Group - December 2020

Landmark Ledger

(949) 260-4770 Professional | Experienced | Licensed Expert IRS & State Tax Relief

December 2020

As 2020 Comes to an End Find Control in the Chaos

2020 is finally coming to a close. It’s been a year with many ups and downs, and much of it has been outside of our control. But while there is a lot you can’t control, there are still many things you can control, and that includes actions being taken by the IRS. If you receive a letter in the mail from the IRS, just opening it can fill you with worry and dread. But the truth is that a letter from the IRS doesn’t have to be stressful — there are steps you can take to arrive at a resolution that works for you. There are options every taxpayer can pursue to get in control of their situation. A Payment Plan This is an affordable way for taxpayers to pay what they owe the IRS over a longer period of time. You don’t have to worry about upfront costs or huge financial burdens. It allows you to budget and plan so your living expenses remain intact. Financial Hardship Sometimes, you’re just in a bad spot and paying the IRS isn’t realistic. In this situation, the IRS may agree that the taxpayer cannot pay at this time and will set the case aside temporarily. Penalty Removal This is a legitimate way for a taxpayer to bring their balance down by potentially thousands of dollars. When someone qualifies, the IRS can remove certain penalties so the taxpayer can better pay off what is owed. Tax Settlements The taxpayer can offer a settlement to the IRS as a compromise. The IRS often accepts lump sums as full payment of the outstanding debts. The lump sum may be far less than what was originally owed.

When you pursue one or more of

these options, you can steer the case toward a resolution that works to your advantage. You never have to take your IRS tax bill at face value, particularly when that bill is more than you are prepared to handle. You have control as long as you are willing to communicate with the IRS. It’s important to remember that the IRS is following strict rules and procedures based on the tax code. While many people fear the IRS, that fear is often manufactured — we hear stories about the IRS from friends or colleagues, and the media portrays the IRS as a big, bad entity. But it’s the tax code that tells the IRS what they can and cannot do. When you understand the rules and procedures — or work with someone who does — you can use those rules to come out on top when it feels like the world is on your shoulders. As this year comes to an end, set aside all those things you can’t control and focus on those things you can control. When you focus on what you can control, you set yourself up for future success. You’ll start 2021 on the right foot! And when it feels like the IRS is looming over you, you never have to face them alone. Seek out professional help from IRS Specialists like us, and together, we can control the situation to reach a favorable outcome using strategies found right in the tax code itself!

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3 Gift-Giving Tips That Won’t Kill Your Savings

Think beyond store-bought or expensive items. Sure, everyone wants this holiday season’s “it” item, but sometimes the best gifts don’t even come wrapped under the tree. Instead, look to your own talents as a clue to what you should give. If you’re a great crafter, create something unique for the people on your list. If you can offer the gift of time, provide a free night of babysitting for your friends with kids or an experience at the local theater. These gifts have a bonus factor: Recipients love the gift when they open it, and they love it when they get to use it! Set a budget — and stick to it. Setting a holiday budget ensures you only spend what you can afford. It also narrows down your search. If you choose to buy your neighbor something, but they aren’t your top priority, set their budget at a lower level, like $25–$50. If you have a sibling who has had a rough year and you’d like to make their holidays a little brighter, bump their budget up. This narrows the focus of what you’re looking for so you don’t stumble into something you can’t afford. Ultimately, it’s the spirit of giving during the holidays that makes them so rewarding. With a little ingenuity, you can be generous and avoid the stress of excess debt come January.

Ah, the holidays. It’s a time of sweet treats, family, and giving back — and sometimes giving a little too much. When it comes to the perfect holiday gift, many people spend too much money. The average American spends nearly $1,000 on gifts during the December holidays alone!

It’s possible to cut back and make it to January without major debt. Here’s how.

Check your list — twice! The list is going to be your secret weapon to tackling the holidays with your savings still intact. Start by writing down the name of every person you’d like to get a gift for. Now, with the exception of your immediate family members, narrow the names down to your top five — top 10 if you’re really popular. Now, place the names of the people who didn’t make the cut into a second list. If you still feel the need to do something for them, send homemade cookies or a handwritten note instead of purchasing something. This limits how much you actually have to spend!

HOW TO STOP THE IRS FROM TAKING YOUR PASSPORT

I f you owe back taxes, a 2015 law gave the IRS the power to revoke your passport. They can certify to the State Department that a taxpayer has a “seriously delinquent” tax debt. Americans with seriously delinquent tax bills will be denied passports or passport renewals if they do not pay their tax bill or make arrangements to pay. Once the State Department receives certification of a tax debt from the IRS, it must discontinue issuing or renewing the taxpayer’s U.S. passport. But that’s just the tip of the iceberg! The State Department may also fully revoke your existing passport.

So, what can I do?

The IRS won’t count your back taxes as seriously delinquent if your tax debt is:

•

Being paid timely with an IRS-approved installment agreement

• Being paid timely with an offer in compromise accepted by the IRS • Under protection due to a properly filed appeal • Temporarily under a collection hold because a request for innocent spouse relief has been made If you need your U.S. passport to keep your job, once your seriously delinquent tax debt is certified, you must fully pay the balance or make an alternative payment arrangement to have your certification reversed. Once you’ve resolved your tax problem, the IRS will reverse the certification within 30 days of resolution of the issue and provide notification to the State Department as soon as practicable.

What is a seriously delinquent tax debt?

This is defined as an outstanding IRS tax liability in which:

• You owe the IRS more than $51,000 in back taxes, penalties, and interest • A Notice of Federal Tax Lien has previously been filed and the period to dispute it has lapsed, or the IRS has issued a levy with respect to the tax debt Upon receiving certification, the State Department will deny your passport application and/or may revoke your current passport. Your passport can be revoked both when you are in the country and when you are traveling overseas.

How can Landmark Tax Group help?

Visit LandmarkTaxGroup.com/Free to download our FREE report, “ IRS Debt — How to Stop the IRS from Taking Your Passport. ” This report contains full details on this serious issue that impacts taxpayers every year and everything you need to know to avoid this stressful situation.

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Inside This Issue The IRS Is One Thing You Have Control Over 1 3 Fool-Proof Ways to Pay for the Holidays Without Going Broke Can the IRS Really Take My Passport? 2 What Our Clients Are Saying Tax Quotes 3 Winter Road Trip Essentials You Didn’t Know You Needed 4

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A Driver’s Guide to Safe Holiday Travels Winter Road Trip Essentials You Didn’t Know You Needed

On Sept. 24, 2019, more than 2.5 million people passed through TSA checkpoints at airports across America. On the same date this year, those terminals saw just 826,316 travelers — a nearly 70% drop. Since the COVID-19 pandemic hit, Americans have been thinking twice about air travel, and this holiday, millions of would-be flyers will set out on road trips instead. Road tripping is a great way to avoid contact with a lot of people, but it can also be dangerous, especially in winter weather. Fortunately, you can take several steps to keep your family safe. Getting your car checked before you go, for example, can save you a lot of hassle on the road, as can investing in a set of snow tires. It’s also smart to take precautions such as letting a friend or family member know your route, predicted arrival time, and where you plan to stop for gas along the way. Apart from that, one of the best things you can do is pack an emergency kit. AAA sells premade kits through outlets like Amazon, and you can find a basic kit with things like jumper cables, ponchos,

rope, batteries, pliers, zip ties, and a first-aid kit at pretty much any Walmart or sporting goods

store. You could even save a life by adding a few more essentials to your kit, like a blanket, snacks, and an extra cellphone charger.

At this point, you’re almost a safety black belt. But to take your kit to the next level for winter driving, there are three more little-known items you should stash in your trunk: a shovel, a bag of sand or cat litter, and an extra bottle of windshield wiper fluid. If you get stuck in a snowbank, the shovel will help you dig your way out without risking frostbitten fingers. The sand or cat litter will boost your traction if you sprinkle it around your wheels in an icy spot, and the extra wiper fluid will make all the difference if you run out during a snowstorm.

Once you’re prepared, crank up the Christmas carols and get driving!

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