Landmark Tax Group - March 2021

Landmark Tax Group - March 2021

Landmark Ledger Tax Season Stress Make Filing Taxes and Dealing With the IRS a Little Easier

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

March 2021

Another tax season is upon us. For some people, filing their taxes is a huge relief. For others, it’s a source of stress over lingering uncertainties, even if everything was done by the books. This year, the stress is all the more understandable. After a tumultuous 2020, there are more uncertainties than in your average tax year, especially for taxpayers who took advantage of any government assistance or the various programs that doled out money last year. Thankfully, there are a number of steps you can take to make tax filing easier. It really starts with organization and taking it one step at a time. It’s easy to get ahead of yourself when you want to get it done, but when you rush, you’re more likely to make mistakes. Start by gathering your tax records. Have all your necessary records organized in advance. The more time you give yourself with this, the easier it will be once you sit down to do your taxes, whether you’re on your own or meeting with a tax professional. Having these documents on hand and organized gives you extra time to review them. It may help you discover overlooked deductions or credits or make you realize you don’t qualify for a certain deduction or credit this

year. Either way, this documentation increases the accuracy of your filing.

when you’re trying to get your taxes actually filed.

Tax documents you need include Form W-2 from employers and Form 1099 from banks and other payers. If you engaged in any virtual currency transactions, you’ll need those records too, along with all other sources of income. Basically, if you made money, you need a paper trail and records you can access.

The same can be said for notifying the Social Security Administration of a legal name change. Taking care of it as soon as possible saves a lot of time and headaches down the road. Remember, in general, most income is taxable. This includes unemployment income, refund interest, income from the gig economy, and virtual currencies. Keeping records — and keeping them organized — is the best thing you can do for yourself as you prepare to file this year, or any year. The next best thing you can do if you feel overwhelmed or stressed is to reach out for help. Sometimes, taxes are straightforward and can be completed and filed within a matter of hours or less. But sometimes, they present a curveball you aren’t prepared for or sure how to handle. If you need assistance with tax preparation this year, don’t hesitate to reach out with your questions or concerns. And if the IRS does contact you after you’ve filed, we’re here to help to make dealing with the IRS less overwhelming.

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Coming back to government assistance, you will need Notice 1444 for your economic tax payment if you’ve received that money. Here are a few other things every taxpayer needs to keep in mind: Don’t forget to notify the IRS if your address has changed. While this isn’t usually a big deal by itself, it can lead to some much bigger headaches if you have to straighten things out later, especially

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When Life Gives You Lemons ... Scrub the Microwave

Lemons don’t just add a tart flavor to your favorite desserts or cool you down in a refreshing drink on a hot summer day. In addition to bold flavors, lemons

For odor-blocking properties, you can use a lemon as an air freshener. Leave half of a lemon in your refrigerator to trap and block potential smells and toss old

won’t smell as bad, and the bacteria will be gone. You can also use this method to polish dining ware, spruce up copper, and even remove stuck-on food from plates. Now, here’s the real secret: Once you master kitchen cleaning a la lemon, you can use these same principles to clean other parts of your house. For example, salt and lemon can be used to scrub grimy sinks and faucets, while a few squeezes of lemon juice in a cup of water makes an excellent cleaning solution for mirrors and windows. You can even make your own reusable cleaning spray by fermenting lemon peels — and the peels of other citrus fruits — in white vinegar for two weeks. Remove the peels after two weeks and spritz the mixture over surfaces you need to clean!

also have powerful cleaning properties. Their acidity and oils cut through grease and can sanitize many of your household items.

lemon rinds down the garbage disposal. Run the disposal to clean the blades and freshen up the sink. As for your kitchen tools, don’t toss them out without trying this lemon trick first. Start by sprinkling salt on a

The best place to clean with a lemon is in the kitchen. For the

microwave, simply juice a whole lemon into a bowl of water, then plop the used peels into

wooden cutting board, then slice a lemon in half. Using half the lemon (flesh-side down) like a

the bowl. Microwave the mixture for a few minutes, let the bowl cool before removing it, then wipe away the grease in the microwave. You can also use this method for your oven.

sponge, scrub the board really well. Wipe and remove the leftover lemon juice and rinse the board before using it again. Not only will the board appear cleaner, but it also

Accurate and On Time 3 Options to Get Your Tax Return Prepared and to the IRS

IRS Free File This is a great option for those who meet IRS requirements, such as any taxpayer who has an adjusted gross income of $72,000 or less. The IRS works with several partners as part of their Free File Alliance. You can find a complete list of requirements, links, and other tax resources by going to IRS.gov and putting the keywords “Free File” into the search box. No matter which tax preparation method you choose, make sure your tax return is accurately prepared and filed on time to avoid hefty IRS penalties. The IRS is expected to be more aggressive this year, so be mindful and diligent. If you expect to owe and you aren’t sure what to do next, find FREE guidance at LandmarkTaxGroup.com/Free .

their primary area of practice). It pays to do your due diligence and to make sure the professional you hire is licensed and qualified to handle your taxes. Tax Software A common example is TurboTax. There is a huge variety of tax software on the market, with some aimed at individuals and others at businesses. Generally speaking, tax software can be easy to use, but it’s important to be aware that many come with costs — both upfront and behind the scenes. First, you have to purchase the software, then, depending on your tax situation, possibly pay again in order to file. Be sure to read the fine print carefully before committing to any tax software.

These days, taxpayers have many different options to get their tax returns prepared. With so many options available, you can pick and choose whichever option makes the most sense for you and your specific tax situation. Some are 100% free, while others come with a cost — but it’s often a cost that’s well worth it, especially for taxpayers who have more complex tax situations. Here are the most prominent options: A Licensed Tax Professional This includes Certified Public Accountants (CPAs) and Enrolled Agents (EAs). If you hire a tax professional, you want to make sure you’re getting an actual professional who is licensed and specializes in tax preparation (it should be

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TOOLS OF THE IRS The Tax Lien and Why It Can Stop You From Buying a House

A federal tax lien is the government’s legal claim against your property. Tax liens are more powerful than levies or garnishments, which primarily target your current income. Liens protect the government’s interest in ALL of your property, including any real estate you may own, other personal property, and your financial assets.

the Notice of Federal Tax Lien , to alert creditors that the government has a legal right to your property. The lien attaches to everything in your name, from a home to a stamp collection. Here’s where it gets tricky for home buyers and sellers: Taxpayers with an IRS tax lien cannot sell their home without the IRS being involved in the transaction. Typically, a taxpayer will need to go through a formal process with the IRS in order to get their permission to sell the home. If the IRS agrees, any sale proceeds go to the IRS first before the taxpayer. Any taxpayer who owes the IRS will commonly face hurdles when attempting to buy a home. Mortgage lenders don't like seeing an IRS tax lien, so taxpayers have to address the lien with the IRS before a home can be purchased. Fortunately, the IRS has procedures that taxpayers can follow after a tax lien has been filed. For help with an IRS tax lien, get in touch at [email protected] or call (949) 260-4770 . Don’t let the IRS stand between you and your next home purchase or sale!

When the IRS places a tax lien on your property, two primary things occur:

1. The IRS places your balance due on the books (this assesses your liability). 2. The IRS sends you a bill that explains how much is owed (notice and demand for payment).

As part of the process, the IRS files a public document,

S UDOKU

TAX QUOTES

INTAXICATION – Nice feeling you get when you receive a tax refund until you realize it was your own money in the first place.

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Inside This Issue Give Yourself an Advantage During Tax Season 1 The Best Cleaning Tool Can Be Found in Your Kitchen Get Your Tax Return Prepped and to the IRS 2 Buying a House? What to Do When the IRS Gets

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in the Way Tax Quotes 3 3 Irish Travel Destinations for Your Bucket List 4 3 Irish Travel Destinations for Your Bucket List

Don’t Miss These Historic Spots!

Traveling to Ireland might not be an option for you right now, but like a leprechaun hoarding gold, you can still fill up your bucket list with all of the pubs, rolling hills, and lucky sites you’d love to see. This month when you’re planning your trip to Dublin, Galway, or Cork, add these spots to your itinerary. The Oldest Bar in the World – Athlone, County Westmeath When Sean’s Bar closed because of the COVID-19 pandemic, the entire country of Ireland groaned. The pub is famous for its Irish whiskey, music, and history, which stretches back to 900 A.D., far enough to earn it the title of “Oldest Bar in the World.” As of this writing, Sean’s is slated to reopen when it’s safe again, and considering it has already survived the bubonic plague and the Spanish

flu, odds are good that it will make it through this, too! Soon, you’ll be able to raise a glass in the same rooms where the noblemen of nearby Athlone Castle shared drinks in the 12th century. Find more historical tidbits at SeansBar.ie. Ireland’s Spookiest Castle – Coolderry, County Offaly If you’re a fan of thrillers and true crime podcasts, you won’t want to leave Ireland without visiting Leap Castle. This 16th-century haunt was built by the fierce O’Bannon clan, who famously ordered two brothers to throw themselves off a rocky cliff as a test of strength. The survivor was named clan chief, and later Leap Castle was built on that very site — beginning its long and bloody history. Read more about its haunted priest’s house,

murder hole room, and bloody chapel at LeapCastle.net and meet the many ghosts that haunt its halls.

A Famous Smugglers’ Shortcut – Newcastle, County Down Get ready to tie up your hiking boots! This roughly 2-mile hike, called Hare’s Gap, is one of the most famous and beautiful routes in Ireland. When you climb through this pass in the Mourne Mountains, you’ll be rewarded with views of glacial cliffs, boulder fields, and ancient-looking stone walls. Legend has it that the pass was part of the Brandy Pad smuggling route, used to ferry goods like soap, leather, spices, and coffee.

Safe travels, and ádh mór (good luck)!

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