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COL 3d Book Cover smallerThrough Danielle Rama Hoffman’s advanced spiritual work with Thoth, she was introduced to the Council of Light—an intergalactic group of thousands of light beings from across the Multiverse. Their purpose is to support individuals as they shift into Unity Consciousness and return to their natural state of joy. The Council transmitted the teachings in this book for those seeking to accelerate their journey toward health, wealth, happiness, and their soul’s deepest desires. Order today and receive an array of valuable gifts www.counciloflightbook.com.
Money Amplification Exercise A Wealth Spiral We would like to take you through an exercise around the energy of money. You are reaching a financial threshold where through your allowing, through spending more time doing the things that you enjoy, more of the abundance that you have been asking for is realized. This exercise with money is unlike any that you have done before. Attraction and Allowing Money wants to be a part of your life. Money wants to flow through you. Money is waiting at your door, and you have realized that money is not in direct relationship to action. It is in direct relationship to attraction and to allowing. Money comes from the unlimited source of energy, the infinite energy. Just like Reiki or life-force energy, at its base, it is made of the same material as anything else that you may have in your life. Drawing Exercise: Infinite Source Spiral We would invite you to do an exercise with money. Take out a piece of paper and a pen. Leave the center of the paper blank. Now draw a large circle, almost filling up the paper. Choose twelve categories of things that you have done with money and would like to do with money, and write them on the outside of the circle, like a clock. Write one item at noon, the next at one, and the next at two, and go all around the circle of the clock, leaving the center open. The center represents the infinite supply of the universal energy of money. Starting on the outside of your paper, begin to draw a line between these different outcomes, these different things that you have done or would do with money, and slowly draw a spiral toward the center. You are creating a web into the center, spiraling it into the center, until you connect all of your money choices with the center, the source of unlimited life-force energy in its purest essence. In actuality it is the liquid form of money, or the pre-form of money. Continue drawing spirals from the outside of your paper into the center of the paper, and then from the center of the paper back out to the things you would do with money. You are spiraling the tangible items into the infinite energy, back and forth, in and out. Knowing that as you are drawing the finite experiences of money into the infinite energy of money, you are expanding your money and expanding the connection to the infinite supply of money. Take all the time that you would like with this exercise. The Spiraling Energy of Manifestation The money spiraling exercise allows you to see that things in physical form exist in a spiral, an evolution of the infinite source, or vice versa: that things spiral back to their source. When you can align or create a connection between the thing that you have drawn and then break it down into and spiral it with the energy of money, then it manifests. Let’s say you would like to own your house and that this is the largest financial goal that you have at this time. This would cost (fill in the blank) dollars. This seems like quite a bit of money, however, you are in the house, you are visualizing the house, you draw the house, and then from the house you draw a spiral creating a web from the house into the infinite unlimited source of money. In a sense you only have to touch the vibration of your desire with the infinite source of energy, which is pre-form money. Just get them to connect. Let’s try this exercise together. Energetic Exercise: Wealth Spiral Let’s say you have your house and you have the unlimited life-force energy, the infinite energy. You take your energetic pen and you draw through your house and you spiral and circle through the infinite energy. Then you bring that energy into your house and then you spiral back into the infinite energy and you bring it into your house. Again you spiral into the infinite energy and bring it back into your house with the process going like this: infinite, in your house, infinite, in your house, infinite, and so on until it speeds up and creates this vortex of flowing energy. Visualize it. Money is flowing into your house and your house is flowing out into the infinite, and then it’s flowing in and out, in and out, and it keeps flowing this way as long as you are aware of it. To magnify this process you can state the following aloud, “I command a wealth spiral to spin so that I own (with my family who lives with me) this house with ease and grace. I activate a wealth spiral from the infinite source to this house and it is flowing and spiraling, flowing and spiraling, flowing and spiraling. I activate a wealth spiral.” By activating this wealth spiral you see the individual particles that make up the house and are able to break it down to see that the source is the infinite energy, the same energy as money, and the same energy as divinity. It is a little bit like focusing on a glass vase and as you do so you are able to see that it’s actually made up of liquid glass. You do not have to create something new or something outside, it is just a shift in perspective and an inclusion. You’re starting to see the energy of the house, how it breaks down into the infinite source of energy, and how as a part of that there are these connectors that you call money; it is the energy of money that is equated or connected to owning every inch of the house. Bring a spiral of wealth, a spiral of abundance, a spiral of money into your awareness of the energy of the house. You are kissing this wealth spiral into all areas of your life. As you do this you realize that the house or any other area of your life you would like to expand into already holds the energy or the frequency of money and you are expanding this money awareness. It is the law of attraction and it is a vibrational match. It’s already there you’re just slowing things down in your awareness so you can see it. This is a powerful exercise that we would recommend you do on a regular basis. You may choose to do the larger exercise of twelve areas of your life you would like to put the energy of money into, or choose one item a day and focus on that item for the day. You may feel called to use a colored pen that you enjoy or that represents money to you to energize this exercise even further or to simply visualize the wealth spiral. The money that you are seeking is seeking you. Remember, you being you is like sending your address out to the universe so it can find you and bring money to you. Excerpt from The Council of Light: Divine Transmissions for Manifesting the Deepest Desires of the Soul By Danielle Rama Hoffman 0000 Danielle Rama Hoffman HeadShot cropped © Reprinted by permission. All rights reserved. Danielle Rama Hoffman is an ancient wisdom keeper, divine transmitter, and a leader in the shift into Unity Consciousness. She is the author of The Temples of Light and The Council of Light and creator of Divine Transmissions Inc. She provides energy facilitation and consciousness coaching to empower empaths, visionaries and new thought leaders to prosperously share their purpose and manifest the deepest desires of their soul.
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TaxesWe have just passed the October 15th extended deadline to file your income tax return. If you are an individual taxpayer, your next deadline might be the 4th Quarter Estimated Tax Payment which is due before January 15th for the calendar year ending December 31st. .. This can be confusing to a lot of my clients. If you think the January payment is for the current year, you are mistaken. It is for the PRIOR year. Since I work with these overlapping dates more often than you do, I have learned how to keep them straight. But if yours is the only tax return you are responsible for, these dates are often confusing. .. Who pays an estimated tax payment? Most wage earners get a paycheck. The money you take home is your “net check” after deductions are taken out. The basic deductions from most paychecks are for social security. medicare, federal and state income taxes. .. You may have income on which there is no withholding. What kinds of income might that be? Interest and dividend income, rental property profits, sales of assets, gambling winnings, spousal maintenance (otherwise known as alimony) just to name a few. .. Remember, as an American you are taxed on your worldwide income and every dollar is taxable unless it is specifically excluded. Some of the income that is not taxable includes child support, some inheritances and gifts you receive. There could be others, but I try to keep the length of these blogposts or articles to a pleasantly readable size. .. So, back to estimated tax payments. They are designed to help you pay the tax you estimate you may be liable for. The Internal Revenue Services wants you to pay this tax money evenly throughout the tax year. Taxes withheld from your paycheck are considered paid evenly through the year, even if they fluctuate from payday to payday. .. Small business owners generally do not take a paycheck. They figure their profits and make estimated tax payments to cover their income tax and their social security tax. Their tax for the year is figured when the tax return is completed. .. Estimated Tax Payments are made in four payments on Form 1040ES. The first quarter is composed of months January, February and March. The first quarter (Q1)1040ES is due April 15th. The second quarter (Q2) is for months April and May (only two months here). Q2 1040ES is due June 15th. The third quarter is back to three months, June, July and August.  with the Q3 1040ES payment due September 15th. And the fourth quarter, Q4, is the FOUR months of September, October, November and December. The 1040ES for Q4 is due January 15th of the following year. You just tell me how much you paid and when. .. It is okay to make these estimated tax payments early. If you make the payments late, the late payment penalty is figured when preparing your 1040 tax return. If you did miss a payment this year, don’t panic. Just be prepared to add a few extra dollars (depending on the amount of your estimated tax payment) to your tax bill when your tax return is prepared.
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taxes-irs-buildingDuring these uncertain days of our government shut-down, one thing is for sure. Some of the employees at the Internal Revenue Service are considered essential. While some may be on furlough with or without pay, others are expected to put in their regular time.   The Customer Service section may be reduced for now. But I’m sure the collections division is open. And I know the IRS will be accepting tax returns. Our government depends on our tax dollars to pay its bills.   Whether you file by mail or whether you file electronically, if your return is on extension and you have not filed it yet, you have until October 15th to meet your extended due date. Rain or shine, open or not, if you file after October 15th you are now a tax delinquent.   There is no “time out” or “detention” or “stay after class” at the Internal Revenue Service. There is no “dunce cap”. But if you owe tax, there is something else to watch out for.   I tell my clients who file a tax return with a balance due, they can either have the IRS debit the money right from their bank account, or they can mail in their check or money order. If they can’t pay their tax bill in full, I tell them to send in as much as they can. And then I add, “And expect a bill for interest and penalties”. These are what the IRS calls “additions to tax.”   WHAT?! Why?! If you don’t pay your tax in full before or by April 15th, then you are inviting additions to your tax.   The IRS must, MUST, by law assess interest on late paid taxes. They cannot fail to bill you for, or waive, any of the interest.   When you owe tax after April 15th, you can be subject to all kinds of penalties. There is a failure to file penalty. There is a failure to pay penalty. There can be a failure to pay estimated taxes penalty. PLUS your state may also assess penalties and interest if you also have a balance due with that extended return.   Sometimes life just happens. You  may have an unusual situation and a really good reason for not having been able to estimate on April 15th your taxes due for the year. It never hurts to ask nicely if the IRS would be able to abate (or eliminate) any part of the penalties. Write a letter of explanation. Don’t lie. Don’t exaggerate.  Do be complete in your explanation. Be polite in your request. Ask your tax advisor for help. Or consult with me.   If you miss the October 15th extended date to file, that return is just flat out delinquent. To get off the IRS’ “naughty” list, file a correct return as soon as possible. Expect to pay interest. Expect to pay penalties. Plan to pay your full tax before April 15th next year to avoid those additions to tax and stay completely off their mailing list.
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ID-100152039Is the Internal Revenue Service closed for business? Could this be the sign you see when you try to reach a federal government office this week? Yes, a Federal Shut Down began October 1, 2013. This is the same day the Patient Protection and Affordable Care Act, or “Obamacare” was to begin. This is also the first day of the United States’ Fiscal Year. Most of us work on a calendar year basis, January 1 through December 31. The government’s fiscal year begins October 1 and runs through September 30 of the following year. When I worked for the IRS in 1979, we experienced a government shutdown. Like today, our government leaders were at odds and could not agree on our laws. How would our government move forward? During that shutdown, only certain “essential” employees were expected to still come to work. Was I one of those essential employees? We were told to go home at lunch and listen to the newscasts. I had one afternoon to wonder… was that a day to party?  NO, it was a day to worry.  Would I have to get up early the next day or could I sleep in? Like today, I traded my time for dollars and I needed those dollars to pay my bills. I was an auditor. I went to work the next day. My co-workers were temporarily furloughed without pay. There is so much affected when the government shuts down. Some services, like national parks and museums, will completely shut down. Some offices will be cut back and others, like public safety, air traffic controllers will have business as usual. The Post Office gets its money from the sale of stamps so fortunately we will still have mail service. Where does the IRS fit into all of this?  Well, don’t call the IRS with a question. Customer Service is closed. Audits, already started, will be suspended and for now, no new audits will begin. Don’t worry though, your tax payment will always be accepted and the filing of your tax returns will continue. If you filed an extension for your tax return, the extended due date for your 1040 return is still October 15th and if you don’t file by that date, well – it is just plain late. What does the IRS have to do with Obamacare?  Did you know that the IRS is charged with the responsibility of seeing that every American taxpayer proves they have medical insurance? Yes, so that means there will be a new form for me to include with your tax return. Beginning January 2014, taxpayers who choose not to have medical insurance will pay a fine and they will be subject to a penalty imposed on your income tax return. This penalty will be the greater of $95 per person each year, OR 1% of the household income. People who are temporarily unemployed, people who are on Medicaid (not medicare) or people who live in a state that has opted out of the new expanded program, such as Texas, Pennsylvania or Wisconsin, will be exempt from the penalty. Is this one of the laws that our Congress is battling over? Yes!  Is Obamacare still going to be mandated? We don’t know only time will tell. One thing is certain. We need to know what might be ahead so we can plan. Plans can change. Ignorance is expensive. If you are not aware, you are at risk of paying more than you expected.
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IRS taxThis is not our usual springtime 15th tax season.  This is our fall, extension time tax season. In April, the Internal Revenue Service  has been known to sprinkle the news with stories that scare taxpayers into compliance. The IRS knows that scare tactics can help people be more honest when filing their returns. Lately, the IRS has been in the news for their misdeeds. This is not the kind of publicity they choose for themselves. They are showing their human side. Every government office is staffed with individuals. These employees are human beings, just like you and me. Sometimes a single person may forget they are a civil servant. They forget their job is to serve the public. The fall victim to the emotional pull of power and greed. When I was an auditor in training I heard a story about a former co-worker. Former is the key word here. Usually, when management gets wind of a choice of action that is outside an employee’s job description, that employee gets noticed. A good manager will first counsel the employee. The manager will give that person a chance to clean up their act. They will give that person an opportunity to “fly right”. Sometimes, though, the misdeed is so wrong that the person is fired and maybe also arrested for committing a crime. This story was one I heard years ago. The story I heard was about taxpayers writing their checks for taxes due. Most people just wrote their checks payable to “I R S”. I wrote my checks to IRS, too. Then we were instructed to completely spell out the words “Internal Revenue Service”. Would you have thought that somebody was changing the letters “IRS” to “MRS” and adding a last name? That is exactly what happened. That employee was altering the taxpayers’ checks. (More than one!)  That employee was stealing the taxpayers’ tax money and putting it in their own bank account. The crime was against both the taxpayers and against the government. Today we are asked to write our checks to the “United States Treasury”. Every year I must attend a certain amount of what is called continuing professional education, CPE, to maintain my credentials. Every year the tax laws change and I focus on knowing what I need to know in order to do my best job for you. My mind was never figuring out how to break the laws.  But there are plenty of people who do just that. Lately the IRS has been caught with their hand “in the cookie jar” so to speak. They have delayed the applications of certain groups asking for legitimate tax-exempt status. They have wrongly targeted certain individuals for audit. These are examples of human beings who have let their access to power cloud their judgment. If you keep your eyes on doing the right thing, you’ll never have to be worried about any negative consequence. You’ll be able to sleep soundly every night.
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Wedding Same Sex Well, these answers about our newest tax law change are direct from the horse’s mouth, the IRS. “The following questions and answers provide information to individuals of the same sex and opposite sex who are in registered domestic partnerships, civil unions or other similar formal relationships that are not marriages under state law. These individuals are not considered as married or spouses for federal tax purposes. For convenience, these individuals are referred to as “registered domestic partners” in these questions and answers. Answers to Some of the Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions“Can registered domestic partners file federal tax returns using a married filing jointly or married filing separately status?

No. Registered domestic partners may not file a federal return using a married filing separately or jointly filing status. Registered domestic partners are not married under state law. Therefore, these taxpayers are not married for federal tax purposes.

“Can a taxpayer use the head-of-household filing status if the taxpayer’s only dependent is his or her registered domestic partner?

“No… A taxpayer’s registered domestic partner is not one of the specified related individuals …. that qualifies the taxpayer to file as head of household, even if the registered domestic partner is the taxpayer’s dependent.

“If registered domestic partners have a child, which parent may claim the child as a dependent?

“If a child is a qualifying child … of both parents who are registered domestic partners, either parent, but not both, may claim a dependency deduction for the qualifying child. If both parents claim a dependency deduction for the child on their income tax returns, the IRS will treat the child as the qualifying child of the parent with whom the child resides for the longer period of time during the taxable year. If the child resides with each parent for the same amount of time during the taxable year, the IRS will treat the child as the qualifying child of the parent with the higher adjusted gross income.

“Can a registered domestic partner itemize deductions if his or her partner claims a standard deduction?

“Yes. A registered domestic partner may itemize or claim the standard deduction regardless of whether his or her partner itemizes or claims the standard deduction. Although the law prohibits a taxpayer from itemizing deductions if the taxpayer’s spouse claims the standard deduction …, this provision does not apply to registered domestic partners, because registered domestic partners are not spouses for federal tax purposes.”

There are more questions and some more answers to the questions that have surfaced around this issue.  Next week I’ll talk about something different and come back to more of these questions and answers in a future blog.
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ID-100144471Do you remember playing a game called 20 Questions?  It’s a game for two or more players. One person thinks of something and the other players ask up to 20 questions trying to figure out what the first person was thinking. There is always something going on in the tax business, that sometimes I think we are all playing 20 questions with the IRS.  Maybe it is the IRS trying to figure the public out. One of the most recent topics in the tax news today affects all of us in my business, but only a few of my clients.  If this doesn’t affect you directly, you may know someone who is happy to hear this news.  The IRS must follow the Federal Tax Code, the tax laws. In doing so, they draft  rules and regulations, procedures and policies. Once in a while a taxpayer or group of taxpayers will take an issue to court and changes are made. This is about one of the most recent changes. Keep in mind that while most states follow the federal law, each state can decide for their own state if they will follow the federal law to the letter or if their state will make exceptions to any law.  On their website, the Internal Revenue Service has published 19 questions and answers based on new Revenue Ruling 2013-17.  Here are just a few of the questions taken directly from that announcement. In the upcoming weeks I’ll include the answers to some of them.

“1. When are individuals of the same sex lawfully married for federal tax purposes?

“2. Can same-sex spouses file federal tax returns using a married filing jointly or married filing separately status?

“3. Can a taxpayer and his or her same-sex spouse file a joint return if they were married in a state that recognizes same-sex marriages but they live in a state that does not recognize their marriage?

“4. Can a taxpayer’s same-sex spouse be a dependent of the taxpayer?

“5. Can a same-sex spouse file using head of household filing status?

“6. If same-sex spouses (who file using the married filing separately status) have a child, which parent may claim the child as a dependent?

“7. Can a same-sex spouse itemize deductions if his or her spouse claims a standard deduction?

“8. If a taxpayer adopts the child of his or her same-sex spouse as a second parent or co-parent, may the taxpayer (“adopting parent”) claim the adoption credit for the qualifying adoption expenses he or she pays or incurs to adopt the child?

“9. If a sole proprietor employs his or her same-sex spouse in his or her business, can the sole proprietor get a refund of Social Security, Medicare and FUTA taxes on the wages that the sole proprietor paid to the same-sex spouse as an employee in the business?

“10. Will the IRS issue further guidance on how qualified retirement plans and other tax-favored retirement arrangements must comply with Windsor and Rev. Rul. 2013-17?”

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September on calendar.Here we are at the beginning of September. Summer is over. Students are back to school. Tax return extensions have almost expired or run out of time. We all practice some kind of time management. Some of us complete tasks long before they are due. Those people give themselves plenty of lead time. Some of us wait until time is almost up. Both types of people are practicing some kind of time management. If you like to do more than one thing at a time you can call yourself a multi-tasker. If you wait until the last minute you can say you practice “just in time” management. If you are a business owner who extended your tax return, you have a tax return due very soon. Corporate tax returns were due last March. Partnership tax returns were due last April. If you filed for an extension of time to file, both of those types of returns are due September 15th. And since September 15th falls on a Sunday this year, this year you have an extra day to file. You have until the next business day, Monday, September 16th to file those extended returns. Extensions do not give you any extra time to pay the taxes. Extensions just give you extra time to file the paperwork. Regular, or “C” Corporations may have a tax liability to pay. Small or “S” Corporations and Partnerships do not pay taxes. They are called pass-through entities because they pass their tax liability through to their owners, the shareholders or partners of those business entities. We don’t really know how much tax is due until the tax return is completed. When you expect you will owe tax, it is a good idea to estimate, or make an educated guess, of what you expect your tax bill to be. Making estimated tax payments and making a payment with your request for extension of time to file will allow you to pay your taxes before the due date. Making estimated tax payments can save you money in the long run. When you pay your taxes after the date they are due to be paid, you can expect a bill from the Internal Revenue Service (or any other tax agency) for interest and penalties. If you owe taxes on your extended tax return, those taxes will not have been paid on time. And you should not be surprised when you get your bill for what IRS calls “additions to tax.” You may be reporting your business as a sole proprietor. The sole proprietorship income and expenses are reported on a Schedule C Form as part of your 1040 Tax Return. EVERY business owner files a 1040 series tax return for their personal taxes. The 1040 was due April 15th. If you filed an extension to request more time to file your tax form, that extension allows you until October 15th to file the paperwork.  October 15th falls on a Tuesday this year so there is not extra day because of any weekend or holiday.  Like any other tax, if it is not paid by the original due date, you can expect interest and maybe also penalties to be added to your tax bill. Why am I so full of this good news? Because when you know the rules of the game you can play to win. And if you are just now tuning in to these rules, you can play a better game from now on. Always to your lowest legal tax, Nellie T Williams, EA
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LetterThis is the scoop straight from the IRS along with some comments from me. Each year the IRS sends millions of letters and notices to taxpayers. Many people may feel anxious when they receive one. The IRS believe many of these notices are easy to resolve. Basically they just want a little more information about something you put on your return. They might have a question about something you left off your return. Most recently, the IRS has been contacting small business owners to find out if they reported all their cash sales. There are also millions of other letters sent outside of this kind of “special” project.

Here’s what to do if you receive a letter or notice from the IRS:
  1. Don’t panic. Take a deep breath. Follow the instructions in the letter. X
  2. There are many reasons the IRS sends notices to taxpayers. The notice usually covers a specific issue about your account or tax return. It may request payment of taxes, notify you of a change to your account or ask for additional information. X
  3. If you receive a notice about a correction to your tax return, you should review it carefully. You will need to compare the information in the notice to the entries on your tax return. X If you agree with the correction, you usually don’t need to reply unless a payment is due.If you don’t agree with the correction the IRS made, it’s important that you respond as requested. Respond to the IRS in writing to explain why you disagree. X Include any documents and information you wish the IRS to consider. Also include the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the lower left corner of the notice. Allow at least 30 days for a response from the IRS. X
  4. There is no need for you to call or visit an IRS office to answer most IRS notices. If you have questions, call the telephone number in the upper right corner of the notice. When you call, have a copy of your tax return and the notice available. X You will be referring to that notice on that phone call. What they don’t tell you is to be prepared to be on hold for a little while. They get a lot of phone calls. X
  5. Keep copies of any correspondence with your tax records.
If you get an audit notice, consult with your tax advisor. Do not sign anything before you know what you are signing. Don’t agree to pay something you don’t owe.
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Taxes, ReceiptsAbsolutely nothing! Sometimes you may feel like a little fish in a big sea of taxpayers. But the IRS will be the first one to tell you they do not participate in the practice of  phishing. . You might think I made a spelling mistake there,  but “phish-ing” is defined as the fraudulent practice of sending e-mails or making phone calls that look like they are from legitimate companies. They are really from criminals who want to trick you into revealing personal information. You actually wind up giving them permission to steal your identity and steal your money. . If the IRS wants to contact you, they will send you a letter first. If you are being audited, the IRS will tell you they will NEVER make their first contact by email or by telephone. . Recently small business owners are nervous about the new mail campaign IRS is making. IRS is sending letters to small business owners all across the country. They want to know if you have reported all of your cash sales. . This letter is NOT the beginning of an audit. They are looking for business owners that know they haven’t reported all of their income. If that is you, you have this opportunity to come forward, to “fess up”, to confess that you actually do have more income to declare. . According to one news report, the headline on one IRS letter reads “Notification of Possible Income Underreporting.”  It notifies the business owner “your gross receipts may be underreported.”  It then says you must complete a form to explain why your income from customers not using a credit card “appears unusually low.”  The words “non-credit card sales” means “cash” sales to me. Read my blog from last week on the important practice of depositing all of your business income to your business bank account. . I’ve said before and I will say it again…when it comes to the IRS, it is up to you to prove you are right. Unlike criminal law, in tax law the IRS assumes you are guilty before you prove you are innocent. This means the burden of proof is on you, the taxpayer. . So when you get a letter from the IRS, open it. Find out exactly what they want. Pay attention to the response date they would like to hear back from you. They will always include a address for sending mail to them and a phone number in case you want to call them. . If you do call them, YOU are initiating the telephone contact. And when you give the IRS your phone number, they may call you back. That return phone call from the IRS is NOT phishing. It is in response to you reaching out to them. . Rest assured, If you dot your “i”s, cross your “t”s, cover your  bases and play by the rules, you will have nothing to worry about.  That does not mean pay more tax than you have to…it means pay only your fair share and not a penny more.
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