CONTACT ME FOR A FREE CONSULTATION
1. IRS Notices
2. IRS Audit representation
3. Unfiled prior year tax returns
4. Payment Plan
5. Offer In Compromise
6. Lien and Levy release
7. Penalty abatement
8. Individual & Business tax returns
In general, the Internal Revenue Service (IRS) has 10 years to collect unpaid tax debt. It is not in the financial interest of the IRS to make this statute widely known.
In addition, like most IRS rules, the nuances of the statute can be complex and difficult to understand. Those choosing this option must be prepared for the IRS to leverage all its legal tactics to collect during this period. Some, for example, may not be able to continue to operate their business with standard measures enforced by the IRS to collect. Towards the end of the collection period, the agency will likely become even more aggressive in its collection actions.
Your option is for me to negotiate with the Internal Revenue Service on your behalf. This negotiation is called an Offer In Compromise (OIC) and is a program administered by the IRS. The Offer In Compromise is considered on a case by case basis and takes into account each taxpayer’s specific situation.
Some factors are as follow:
1. The Taxpayer’s ability to pay
2. The equity a taxpayer has in his/her assets
3. Present and future income
4. Present and future expenses
5. Likelihood of taxpayer changes in circumstances
A taxpayer may always represent themselves before the IRS. However, many taxpayers find dealing with the IRS frustrating, time-consuming, intimidating or all of the above.
Disadvantages of taxpayer representing themselves are many:
1. The taxpayer does not have the professional’s expertise or know what the options are or how to get the lowest settlement allowed by law.
2. 3 out of 5 Offers in Compromise (OIC’S) submitted by the taxpayer are rejected by the IRS.
3. Many taxpayer-negotiated OICs offer the IRS much more than is required by law.
4. The taxpayer may be too frightened, frustrated or intimidated by the IRS to effectively or comfortably negotiate a settlement.
5. The Taxpayer may slip up and inadvertently make statements that can make the problem worse perhaps triggering an audit or even criminal prosecution.
You may have some concern about the confidentiality of the information you provide to this office. It is my policy to keep your personal and business matters confidential to the extent permitted by law.
We handle all information you provide us with the utmost confidentiality. Your personal information will only be shared with members of my office who need to know this information in order to complete the work you have hired me to do. We will not disclose your personal information to anyone outside my office without your express written permission to do so, or unless I am legally required to do so.
You should be aware that anything you tell me during the interview for preparation of your tax return or any tax resolution is confidential, but not protected from the IRS Privileged communications. If you feel the nature of any subject matter to be discussed requires protected communications, please raise that issue so that we can discuss your possible need to consult with an attorney for legal advice.
SIGNIFICANT UPDATES FOR THE 2022 FILING SEASON WITH POSSIBILTY OF SMALLER REFUNDS AND BIGGER TAX BILLS.
STANDARD DEDUCTIONS
Single and Married Filing Separately is $12,950
Married Filing Jointly is $25,900
Head of Household is $19,400
ITEMIZED EDUCTION RULES HAVE NOT CHANGED MUCH FOR 2022:
1. State and local taxes. Deduction for state and local income tax, property tax, and real estate taxes, DMV fee is capped at $10,000.
2. Mortgage interest deduction is limited to $750,000 of the mortgage debt.
3. Medical expenses only if exceed 7.5% of adjusted gross income can be deducted in 2022.
4. Charitable donations.
5. No miscellaneous itemized deductions are allowed for federal (allowed for state
of CA).
CHILD TAX CREDIT
Child tax credit reverts back to its pre-2021 form for the 2022 tax year. The 2022 credit amount drops back down to $2,000 per child up to the age of 16 years.
CHILD AND DEPENDENT CARE TAX CREDIT
The maximum credit percentage drops from 50% to 35% of the eligible care expenses. For 2022 the credit is only allowed for up to $3,000 in expenses for one child/dependent and $6,000 for more than one.
EARNED INCOME TAX CREDIT
The minimum age to claim the EITC jumps back up to 25 for tax year 2022 and maximum age 65. Maximum credit amount increased from $3,618 to $3,733 for workers with one child from $5,980 to $6,164 for workers with two children and $6,628 to $6,935 for workers with three or more children. The EITC phases out after $53,057 for single, head of household filers and $59,187 for married joint filers.
RESIDENTIAL CLEAN ENERGY CREDIT
Before the inflation Reduction Act, the credit was worth 26% of the cost to install qualifying electric, water heating or temperature control systems for your home that use solar, wind, geothermal biomass, or fuel cell power. Now, the credit is increased to 30% for 2022.
TEACHER EXPENSES
For the 2022 tax year teachers and other educators who pay out-of-pocket to by books, supplies and other materials used in a classroom can deduct up to $300 pout-of-pocket expense. $600 for married couples if both spouses are eligible educators.
2022 Tax Brackets for Single/Married Filing Jointly/Head of Household
Contact me to schedule an appointment.
Simon Ayala, Tax Consultant
Address:
1000 Town Center Drive, Suite 300, Oxnard, CA 93036
Email: simon@simonayalataxconsultant.com Phone: (805) 351-3759
