Landmark Tax Group - May 2021

Landmark Tax Group - May 2021

Landmark Ledger

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

May 2021

Don’t Fall to the Dark Side! What You Can Do If You’re Late to File or Pay Your Federal Taxes

This month’s headline is a little tongue-in-cheek, as May 4 is also known as “Star Wars” Day. “May the Fourth be with you,” as they say. When it comes to Star Wars, we’re all familiar with the Light Side and Dark Side. The Dark Side is the path to all kinds of trouble. In the real world — the world in which we work, live, and pay taxes — it’s possible to “fall to the Dark Side” when your tax situation gets the better of you. Here’s what I mean: The deadline arrives, but you find you can’t file your tax return or simply don’t have the funds to pay your owed or estimated taxes. You might not know what to do or what your options are. You’re worried about getting behind on your taxes. Now, if you let it go, you can quickly fall to the Dark Side — you may find yourself in a position in which you are threatened with penalties or interest by the IRS. It can be easy to fall into a cycle of owing more than you should or need to because of issues you may encounter before the deadline.

The sooner you pay — even if it’s only a partial amount of the estimated total — the more it can reduce the failure-to-pay penalty and any interest. This, at minimum, gives you more control over the situation. If you owe $10,000 or less to the IRS, you can set up a payment plan on your own. For the average taxpayer, this is a great option if you’re not in a position to pay in full. You can learn all the details of the “under $10K payment plan” at LandmarkTaxGroup.com/10K . For taxpayers who owe $10,000 or more or are unable to pay anything to the IRS due to financial hardship, you can find guidance on how to resolve your IRS matter at LandmarkTaxGroup.com/Free . You don’t have to stray to the Dark Side. With some planning and proactiveness, you can avoid many, if not all, of the pitfalls that come with late filing or an

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Here’s what you can do to avoid falling to the Dark Side.

If you didn’t or were unable to file your tax return (regardless of whether or not you paid any tax), start by gathering as many relevant documents as you can. This includes W-2s,1099s, and any other related forms you may have. If you act quickly, you can prevent a failure-to-file penalty. This penalty can be up to 25% of the balance due. For most taxpayers, that can be devastating. When it comes to paying taxes, things are a little different. If you are unable to pay your taxes in full by the usual deadline, your next best action is to pay as much as you can right away. Going into May, if you haven’t yet paid, this is still an option.

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inability to pay taxes. By taking these steps, you can stay on the Light Side and have less to worry about.

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Published by Newsletter Pro | NewsletterPro.com

How to Live to 99 Betty White’s Secrets of Longevity

Find a Cause

Beloved “Golden Girls” actress Betty White is still enjoying her golden years. The famed actress celebrated her 99th birthday this January. While she told People magazine that she’s “blessed with good health, so turning 99 is no different than turning 98,” she also had a few tips for folks looking to make it to their centennial birthday. Keep Laughing “Don’t take yourself too seriously,” White says. “You can lie to others — not that I would — but you cannot lie to yourself.” White has undoubtedly provided many laughs to viewers over the years, but she’s not just playing it up for the camera. Laughter is part of what keeps her young. Be Optimistic White says a good sense of humor also helps her keep a good attitude and look for the positive rather than “dwelling on

the downside.” Avoiding negativity also gives her energy. “It takes up too

White is a lifelong animal lover. She calls her golden retriever, Pontiac, “the star of the house.” While pet ownership itself comes with

much energy being negative,” she told People magazine.

proven health benefits, White has channeled her love for animals in bigger causes. She’s been a trustee and board member of the Greater Los Angeles Zoo Association for over 40 years and has done work to help protect endangered species in the wild. Funds raised from White’s official fan club, Bet’s Pets, all go to support animal charities. Embrace Your Vices White told Parade she loves vodka and hot dogs “probably in that order,” which just goes to show that you don’t have to forgo your treats to live to 99.

Stay Busy With nearly eight decades of acting under her belt, six Emmys on her shelf, and over 120 screen credits to her name, White is no stranger to hard work. As she told Parade in 2018, “I just love to work, so I’ll keep working until they stop asking.” Exercise Your Mind In addition to her busy work schedule, what keeps Betty White sharp? Crossword puzzles! She told Katie Couric in an interview, “I’m addicted. An admitted addict. I just can’t put ’em down.”

The IRS Isn’t Always the Bad Guy Use the Tax Code to Your Advantage!

T he IRS often gets a bad reputation. Some of it is deserved; they can be aggressive and overbearing when you owe back taxes. It can seem unfair and lead to a lot of undue stress. The IRS follows the U.S. Tax Code, and, as such, they operate based on procedures put in place over the years. Some procedures were developed by Congress while some were developed internally. But there are many procedures that benefit taxpayers. It’s not all bad and not everything the IRS does is a detriment to the taxpayer. What parts of the Tax Code can you take advantage of?

• Payment plans to pay debt over time • Offer-in-compromise to settle taxes once and for all

While we’ve touched on these in the past, they bear repeating. These represent options for taxpayers to address their specific back tax situation with the IRS. It’s important to note that the IRS may not have an updated or accurate view of your financial or tax situation. All they may know is that you owe a certain amount for any given year. They also know if you owe any interest or have been penalized for any reason as defined by the Tax Code. If your situation prevents you from paying your taxes, the IRS needs to know. They may be willing to work with you to develop a solution that fits your needs and allows you to address the situation on your terms, rather than theirs. The IRS also has a 10-year limit on the amount of time they have to collect on tax before the debt expires — this is by law. They’re also more flexible before they file tax liens and offer opportunities for a fresh start, which can be hugely beneficial. The Fresh Start Program is something many taxpayers are looking into this year, and you can learn more about it at LandmarkTaxgroup.com/FreshStart . Learn how to use the Tax Code to your advantage!

A few good examples include:

• Penalty and interest removals • Financial hardship approvals

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The IRS May Send You One of These Notices OWE MONEY?

Taxpayers commonly receive notices for one of the following reasons:

If you fail to pay your taxes when you file your return, the IRS will send you a notice, which is a tax bill for the amount owed and the first step in the collection process. The collection process will continue until you have satisfied the debt or when the IRS can no longer legally contact you. However, during that process, the IRS will become more aggressive when action isn’t taken. The first thing you need to do if you receive a notice stating you owe money is to check the return address to see if the notice came from the IRS or another agency. If the notice comes directly from the IRS, it will include detailed instructions on how to respond and get more information. If the notice is from another agency, such as your state tax department, you may need to call for further instructions. If the letter is from the Department of Treasury Bureau of the Fiscal Service, it often means the IRS took part of your tax refund to cover another, non-IRS related debt. Once you know where your notice came from, the next step is to understand your notice.

• Information • Threaten a tax lien • A refund to fulfill debt

• Warn the seizure of property of assets • Inform of your right to appeal a tax levy

The first type of notice typically includes the amount owed, the due date, and payment options. If you receive this type of notice and you’re able to pay the tax debt in full by the due date, you will not incur additional penalties. However, after the due date marked on the notice, the IRS will start adding penalties and interest every month. In order to avoid penalties and interest, address your tax notice as soon as it arrives. If you can’t make the payment in full, consider hiring a licensed tax resolution professional to help you apply for tax relief such as an installment agreement and offer-in-compromise. To learn more about each type of IRS notice and what they mean, visit LandmarkTaxGroup.com. If you have been receiving IRS notices and you want to get the issue resolved, another option is the Fresh Start program. Find out more about this program at LandmarkTaxGroup.com/FreshStart .

S UDOKU

TAX QUOTES

“FEW OF US EVER TEST OUR POWERS OF DEDUCTION, EXCEPT WHEN FILLING OUT AN INCOME TAX FORM.”

–LAURENCE J. PETER, AUTHOR

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Inside This Issue Don’t Fall to the Dark Side! 1 99-Year-Old Betty White’s Secrets of Longevity The IRS Isn’t Always the Bad Guy 2 The Types of Notices Sent Out By the IRS Tax Quotes 3 Australian Wombats Are Saving the Day! 4

Sudoku Answer Key

Australian Wombats in Charge

Saving Lives One Hole at a Time

Remember the Australian wildfires of 2019–2020? These fires ravaged large areas of the country, displacing and leaving countless animals to fight for survival. To make matters worse, swaths of the country have been dealing with drought. It’s one challenge after another for humans and animals alike.

At this particular watering hole, Finnie captured all sorts of creatures on camera — birds, emus, possums, echidnas, and monitor lizards — congregating around the wombats’ creation. What isn’t known is how, exactly, the wombats discovered the water, but they surmise the animals likely picked up on environmental clues and dug until they found what they were looking for. Interestingly enough, wombats have been known to help other animals in the past. During the Australian fires, countless animals were left searching for refuge, and they found it in wombat burrows. While the wombats weren’t exactly welcoming other species into their homes with open arms, they seemed to “tolerate” the visitors, as one ecologist with the University of Adelaide noted. It was a case of accidental heroism, much like their search for water, but it was heroism nonetheless.

But one species has taken matters into its own “hands.” Numerous wombats have been discovered digging holes in search of water — and they found it! According to Australia’s ABC News, one group of wombats was discovered on a farm in New South Wales, which was situated over a large underground reservoir. So, the wombats went to work. One farmer, Ted Finnie, reported that wombats dug a hole roughly 4 meters deep by 20 meters wide (or about 65 feet). Their incredible work made this source of water remarkably accessible.

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