Join Nellie as she discusses everything you need to know to avoid an IRS audit in her radio show on the RockStar Radio Network.
Click the title of the show to download the audio recording.
Statute of Limitations
Is it true that IRS has a TIME LIMIT on how long they can wait to examine your tax return? How is this time limit calculated? When does it start? When does it stop? Did you hear the quiet cheer that when up in every time zone across the US at midnight on April 15th? That subtle celebration was the sigh of relief from both taxpayers and tax professionals that another Statute of Limitations had just expired. The IRS had just run out of time to eaxmine certain tax returns. What about states? They have their own statute of limitations. What is that in YOUR state? Does April 15th apply to everyone? NO! When was YOUR tax return filed? What is the SOL on YOUR tax return? How long must you keep certain records to protect and defend your tax return. All these questions! It is for YOUR protection that you know the answers! Let Nellie help you pay your lowest legal tax and not a penny more.
Yes you can fix your tax return. No not “fix”, but repair or correct your originally filed return. Did you make a mistake? Did you forget to report some income? Did you get a revised report after you filed your original return? Did you find you omitted something you are entitled to deduct? Know the IRS will pay more attention to this correction. Be sure to have all the proof you need to support this claim. Know there are deadlines for filing this amended return. Realize it is better to amend a return BEFORE the IRS sends you their invitation to “come on down” and tell us all about it. Listen to Nellie share what she knows to help protect you in paying your fair share and not a penny more.
Are there really only 5 things you need to know to stay out of tax trouble? My Top Five Tips are headlines or bullet points. There is plenty to pay attention to underneath the main topic. 1) Know your numbers. 2) Know your business. 3) Know your dates. 4) Know your team. 5) Know the rules of the game so you can play this tax game to WIN. W = worry free. I = informed decisions. N = naturally and easily answer any tax question anytime. Because it is not IF the IRS calls you, but WHEN they call you. Listen in to find out more about these Top 5 Tips.
IRS tax due dates ARE cast in stone! When the clock strikes midnight on April 15th will you have filed your tax return on time? Will you be asking for an extension of time to file? Did you know you can request time to pay? That is called a payment plan and includes interest and potential penalties. If your return is filed late without a valid extension, penalties and interest WILL be assessed. Did you hurry up to file a return by the due date and later realize you made a mistake? What do you do then? Listen in for answers to ALL of these questions. Let Nellie give you some reassurance and peace of mind.
Did you realize you must BUY your itemized deductions? Did you know the government has a generous FREE deduction called the Standard Deduction. Do you own your own home with a mortgage? This is usually the LARGEST item that is deducted. Home mortgage interest deduction is the one thing I look for in determining whether or not my client may want to itemize instead of taking the free standard deduction. There are times that someone MUST itemize, even if it is less than the standard deduction. There are times that you are allowed to and eligible to itemize but you have reasons to choose the standard deduction. When might this be your choice? Listen in to hear more to help you on YOUR tax return!
Who doesn’t want to work from home? Do you know what is required to have a deductible home office? Are you an employee reqiured by your employer to work from home? Do you have a business designed to generate a profit? Do you have a room that is used solely and exclusively for your job or for your business? Do you have a hobby that you run from the dining room table once the dishes are cleared? There is a BIG difference. One is deductible. One is not deductible. Listen in to hear what you need to know to prepare to deduct the business use of your home.
While individual tax returns, 1040 series, are due April 15th, corporation returns, forms 1120 or 1120S, are due MARCH 15th. Are you ready? Is your business ready? Did you choose to be an LLC? Did your LLC choose to be taxed as a corportion? Did you elect S-Corp status? So many questions! If you have a partnership, you have one more month. Partnership returns are also due April 15th. If you need more time to file the paperwork, you can request an automatic extension of TIME to file, not time to pay the taxes due on your tax day. Tune in to this program to tune into your corporate tax due date duties.
Do you support another person and want to claim that person as your tax dependent? Is this person your qualified child? Or is this person a qualifying relative? Your spouse is never your dependent. Can you claim a “significant other”? What are the rules today about claiming your dependent? Did you know the rules are always changing? They are always being refined or clarified. I jokingly tell my clients, “cats, dogs, birds and fish don’t qualify”. I really do know someone who unsuccessfully (thank goodness) tried to claim their pet. This was not their guard dog on duty at their place of business during the night. Remember the commercials warning: Do NOT Try This at Home! But DO listen in to hear the latest about claiming a dependent today.
Did you realize when you use a tax organizer to get your information together, you are helping your tax preparer make sure you get every advantage you are entitled to? This is not just a good thing, it is a great thing! Did you not get your W2 yet? When you got your paycheck did you also get a paystub? Did you keep that paystub? Did your employer go out of business? Did they forget they still had to issue the W2 forms? Listen in to find out how to get what you need.
Every employee will be looking for their W2 if they don’t already have it. Every independent contractor will be looking for their 1099, too. If you pay someone to help you in your business, you are required to issue that W2 or 1099 by January 31st. You must also report those same W2 numbers to our Social Security Administration. SSA then shares the names and numbers with IRS, Internal Revenue Service. You mail the 1099s direct to IRS. Do you know how long you meed to keep YOUR copies of those reports? Be sure to tune in!
Gary Johnson, also know as “HR Gary”, shares with us his most recent 15 years’ experience in business people power. Gary is experienced in so many areas including Human Resources Management and Labor Relations management . He is a certified mediator in workplace relations. He shares with us how to avoid some of the common mistakes in starting and maintaining your business. Protect yourself with consistent procedures and practices.
Johnell McCauley is my special guest. She is the managing director of the Phoenix Chapter of eWomenNetwork. Networking is the cultivation of productive relationships. And that is SO important to successful business. You will want to listen and learn for you own business success. The right connections can make all the difference. Networking can be so much fun. Johnell gives some great tips to expand your business authentically.
Watch Your Mailbox! Important forms are on their way to you. And you know what? The IRS gets a copy of these forms too! You want to be sure to report ALL of your taxable income. If you omit any taxable income the IRS will surely contact you. You want to deduct all that you are allowed to deduct – but not more than your are allowed. If you claim more mortgage interest than the bank told the IRS you paid, you are sure to hear from the government! Some of the kinds of things you may be watching for are W2 for wages earned, 1099 for rents or for independent contractor earnings, 1098 for mortgage interest paid, 1098T for tuition paid. This is your once-a-year time to be honest with yourself and with our state and federal governments. Protect yourself. Pay your lowest legal tax and not a penny more.
5 Relationship Secrets You Need to Know To Thrive in Business
Virginia Clark, certified hypnotherapist and successful coach joins Nellie to share the 5 relationship secrets you need to know to thrive in your business. Virginia was one of the “Pioneering Nine”, the first women ever invited to attend Dartmouth College. These women were hailed as the women who sparked the movement that turned the entrenched, all-male ivy-league school co-ed. She has a compassionate, direct approach and natural intuition that gives her clients just what they need to create powerful breakthroughs that allow them to uncover their blocks in life. If you have a block in your life, you’ll likely also have a block in your business. Be sure to listen and learn how to use what Virginia has to say about eliminating competition and how to thrive in your business.
If you are in business you may be able to deduct the gifts your give. There are limits, but it is possible. Are you a generous person? Do you give gifts? Do you keep a record of who you gave what? And how much did that gift cost. Can you deduct the whole amount? It depends. Listen to Nellie and her guest, Deanne Marie, talk about how to make gift giving tax deductible. They talk about the secret to being a great gift giver, when gift cards are appropriate and is it ever okay to re-gift an item. Gift giving is not limited to the holiday season. You won’t want to miss a minute of this program.
I’d love to be a BIG winner, wouldn’t you? What would you do if you won? Do know you need to keep a gambling LOG if you want to deduct you gambling losses? Or do you not have losses because you win on every chance you take? Even professional gamblers don’t win every wager.Do you know how to protect yourself if you are a big money winner? Listen in as Nellie shares with you what she knows about different ways to win money. And of course, the IRS acts like they were right there with you. They participate in your winnngs. Your winnings are taxable and they are going to take their share of your winnings. And Bullet Proof Your Taxes is all about helping you pay your lowest legal tax.
Join Nellie and her guest, Joan Laubach, Wealth Strategist, and learn how YOU too can build a tax-free retirement. There is more to retirement programs than IRAs, 401(k)plans. Stock market ups downs often feel like a roller coaster ride. Mutual fund management fees are just part of the package. Listen as Joan talks about how she helps her clients understand how to make their retirement dreams come true. Why is this a topic on Bullet Proof Your Taxes? Because most all retirment income is taxed. You are going to want to know about this safe, legitimate, and Tax Free retirement option endorsed by the IRS.
Barbara Starley, CPA, is Nellie’s guest this morning. Barbara is a QuickBooks Pro Advisor and shares with us some time-saving and money-saving tips. When it comes to keeping your numbers, you many not even want to keep them yourself, but it needs to be done and it is so much better if it is done correctly the first time. Keep it Simple. Keep it Correctly. Keep your balance
If you have to leave your home or business in a moment’s notice, do you know what to take? Do you know why that is important? Listen in to this program to learn the answers to these questions and more! When you are in an emergency, how do you respond? Do you really care about anything except getting out of danger? So planning in advance is the key to survival. Survival is more than physical safety. Survival is also financial safety. And when it comes to money, the IRS comes right along behind. Paperwork! It can be a real pain in the neck, or it can be a financial lifesaver. Ignore this program at your own peril. Take Nellie’s hand and bolster your personal and financial protection.
Disaster! Casualty Loss! What do I do now? I’ve lost my home. My car was totalled in an accident. Flood. Fire. Earthquake. Oh, my God! You have suffered. Can you deduct any of this event? How can you protect your claim? Have you ever thought about taking an inventory of all the stuff you own? That sounds like a lot a work. Yes, it can be. But it is your personal insurance for protecting a future deduction. I hope you never need this. But like any other insurance, you have it just in case. But you only have it if you decide in advance. Listen now so you know what to do in the future. Just in case.
How do you feel when you hear those letters I R S ? Do you know how much power the Revenue Agent or the Tax Auditor has? How deep can they reach into your pocket? Are you protected? Listen in with Nellie as she shares her “insider” knowledge with YOU. Can you protect yourself in advance? Is it possible to avoid an IRS audit? You Bet it is! When you know the rules of the game you have a better chance of winning. Nellie’s mission is to help you pay your lowest legal tax. If you believe in the old adage, “an ounce of prevention is worth a pound of cure”, you’ll want to know this priceless information right away.
Will the IRS believe your busyness is not a business, but is a hobby? What will that mean to you and your deductions? If you do have a business do you know what kind of business entity you have chosen? Did you know you have a choice? Some people want to be an LLC. If you are a “solo act” you may be a sole proprietor. But if you are part of a team, you might be a partnership? Can you be a corporation instead? So many questions. Let Nellie share some information that can help you with this all-important decision.
Nellie shares her IRS insider knowledge with YOU to help you understand whether or not you pass the tests to be able to deduct your moving expenses. There is a time test. There is a distance test. There is an employment requirement. Are you surprised that there are rules to be followed? Nellie wants you to know the rules of the tax game so you can play that game to WIN and pay your lowest legal tax. If you are thinking about a move, this is a program you want to be sure to hear.
Listen along as Nellie talks with Jennifer Johnson, the Coach of the Feminine Soul, about how fear, doubt and self-limiting beliefs impact your life AND your business. What holds you back in life holds you back in business. She loves to work with high-achieving women and good men. Jenn shares the importance of showing up as YOU, your authentic self. Learn how true it is that “You don’t have to be a size 6 to make six figures.” Find out why she says you have NO competition.
Do you have your own small business or does it have you? Do you make your own schedule? Do you serve your client well? Listen as Nellie shares her experiences as a serial entrepreneur beginning at age 9. And she has had many different jobs throughout her lifetime. What has your experience been? Some of the key lessons she learned were around teamwork. expectations, reliability, responsibility. You’re going to want to listen until the end to hear what surprised her at one job.
Were you ever late for a train? for a plane? Did it wait for you? When your business tax returns and your personal tax returns have a specific due date, can you postpone your tax filing? Do you have to ask for an extension. Isn’t it automatic? What happens if I miss the due date? What happens if I owe tax? Is there any hope for me? Listen as Nellie answers these questions and more. She wants you to sleep well at night every night.
It’s not just the students who go back to school. Teachers’ summer vacation is over too. Are you a teacher? Do you spend your own money on things for your classroom? Do you have to itemize to deduct those expenses? What do you have to pay attention to save on your own tax bill? These are just some of the quetions Nellie answers it this program. When it comes to a tax audit, losing your teacher expense deduction is just like detention – only it costs you money AND time!
Nellie learned at an early age how to be a cheerful giver. Join her as she shares with you her experience as an auditor. Discover what you need to do if you want to deduct what you give to your favorite charity. Was your gift to a qualifying charity? Do you know what records you need to protect your deduction? Listen in when Mr X tells the auditor he doesn’t have the records she wants to verify his deduction.
Webster defines the word reverse: “to move in the opposite direction.” And this is what a REVERSE mortgage does. When you buy a home, you will usually take out a loan, a mortgage, to help you purchase that home. Only recentely have people found themselves “upside down” having purchased at the top of the market and finding their home values less than their loan values. If your home has appreciated, gone up in value, and you are at least 62 years old, you may qualify for a reverse mortgage. These lenders have a formula they use to determine how much your home ma qualify for. Listen along while my guest, Dale Boushley, CFP, EA, shares what he knows about reverse mortgages. If you are curious about whether or not this could be for you, learn that you have choices. Is this a good decision for you? Why do you want to take out a reverse mortgage today? Or not. This program is not about selling you on the idea. We are not mortgage sales respresentatives. We want you to know this could be a source of tax-free money for an older homwowner in a cash flow crunch.
If you owe money to the Internal Revenue Service, can you go bankrupt on the IRS? You need the wisdom and counsel of Jack Wood, EA. Jack was employed at both the Internal Revenue Service and later at a tax law firm in Rhode Island. His successful Arizona firm, Tax Strategies Southwest, is the one to call. Jack KNOWS how to help you with your IRS collection matters. Listen along as Jack advises us about non-filers, non-payers and IRS debt resolution.
Doctor Visits. Prescriptions. Miles driven to appointments and pharmacies. Can you deduct this? Do you have medical insurance? Do you get a check for reimbursement that covers your medical expenses? What can you deduct? Don’t let this give you another pain in the neck. Listen in for all your answers.
Donald Deasy, CLU, is Nellie’s guest today talking about the benefits of a Revocable Living Trust. Clarifying that a Living Will is not a Last Will and Testament. And why a Medical Directive to your doctor is so important for your trustee and for your heirs in carrying out your last wishes. I am so grateful my parents had a revocable living trust. It eliminated any potentisl misunderstandings between me and my brothers. You’ll want to be sure to listen along!
Every year you file your tax return, your filing status is determined by your marital status on the last day of the year. One year you may be single. The next year you may marry. You may stay married or you may separate. And many divorce. Is there a special status for domestic partners? Listen to Nellie and her guest Bob Lind, fellow EA, tell it like it is.
Internal Revenue Service has its own special name for people who have not filed their tax return. They are called NON-FILERS. Did you know that if you wait too long to file your return you will owe interest and penalties on taxes owed? Worse yet, did you know if you wait too long you could lose the refund you might have received when filing on time? Listen as my guest Jack Wood, EA, shares his knowledge and tips with us. Get back in the good habit of filing on time. Keep the IRS bloodhounds off your trail. Don’t give them anything to “sniff out”. Understand why you want to file your truthful and accurate return on time.
Are you a gambler? Do you like to take a risk? Do you actually come out “ahead.” Do you know this is a taxable activity? Are you one of the few professional gamblers? Is gambling you business? For most of us, gambling is recreation, a pleasurable hobby. Our winnings are taxable. Our losses may be deductible. Do you know you need to keep a record, a log, of your gambling activity? Listen in while I share with you some ot the truths you need to know to protect yourself. Report ALL of your winnings, deduct your losses. Learn why you may not be able to deduct ALL of your losses. What game do you play? Bingo? Poker? Lottery? Powerball? Keno? Blackjack? Craps? Bet the Ponies? Watch the dogs chase the rabbit? Hit the taxpaying jackpot with this prize-winning information.
Do you toss that letter from the IRS in a pile, in a stack, hoping it will take care of itself? Do you know IRS has questions. They want answers. Do YOU have the answers? It is your tax return, after all.
Join Nellie and her guest, Brenda Nielsen as they talk about Americans Living Abroad. Did you know an American citizen must pay taxes on their WORLDWIDE income? Did you know that expatriate is not expatriot? They have not been exiled, they just choose to live outside the US. Listen to this lively discussion and learn from this award winning Copenhagen Embassy volunteer tax assistor.
Douglas Harter, EA, former IRS Revenue Agent talks with Nellie about business taxes, business audits and his Agent experience with the IRS. We talk about entrepreneuers, both small business and sole proporietors, and their tax worries. Listen in for great insider secrets revealed. Why does the self-employed entrepreneur pay estimated taxes? When are estimated taxes due? Are estimated taxes the same as employer taxes? When are employer’s quartely tax payments due? What can happen if I don’t pay on time?
Stephanie Campbell, EA, joins Nellie to talk about graduation, education, job-seeking, moving and related expenses. What’s deductible. What is a credit? Does a move have to be job-related? Why can’t I take…. ? Listen as they share insider secrets to help you pay your lowest legal tax and not a penny more.
Do you travel for business? Do you drive your car, take a train, fly in a plane? Are you away from home overnight? Do you stay in a hotel? Do you eat in a diner, a coffee shop, a nice restaurant? What are you spending your money on? Are those expenses deductible? Learn how to protect your deductions. Be prepared now for the IRS tax audit. The 5 Ws of journalism (plus how much) are key.
What type of entity is your business? What type of tax return do you file? What kind of taxes does your business pay? What kind of accounting method have you chosen? Cash Basis? Accrual Method? Do you have a fiscal year end? Or do you have a calendar year end? Do all of these questions make you crazy? It doesn’t have to be so hard.
Do you have a dependent? Is your dependent a qualifying child? What is a qualified child? What is a qualifying relative? Can I claim my parent? Is day care restricted to only the young? How can you pay your lowest legal tax?
Introduction to Nellie Williams, EA. Former IRS Tax Audit Supervisor unlocks the door to the IRS Audit Division’s back room. Who are the major players at the IRS? How can you win the game if you don’t even know the rules?