Financial Cents

July 9, 2019 | Juanita Farmer, CPA

Your Canceled Debt Could Be Taxable

Generally, debt that is forgiven or canceled by a lender is considered taxable income by the IRS and must be included as income on your tax return. When that debt is forgiven, negotiated down (when you pay less than you owe), or canceled you will receive a Form 1099-C, Cancellation of Debt, from your financial institution or […]

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July 2, 2019 | Juanita Farmer, CPA

What to Do if You Receive an IRS CP2000 Notice

An IRS CP2000 notice is mailed to a taxpayer when income reported from third-party sources such as an employer, bank, or mortgage company does not match the income reported on the tax return. It is not a tax bill or a formal audit notification; it merely informs you about the information the IRS has received and […]

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June 26, 2019 | Juanita Farmer, CPA

Filing an Amended Tax Return: What You need to Know

If you discover a mistake on your tax return after you’ve already filed, don’t panic. In most cases, all you have to do is file an amended tax return. Here’s what you need to know. Taxpayers should use Form 1040X, Amended U.S. Individual Income Tax Return, to file an amended (corrected) tax return. An amended tax […]

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June 20, 2019 | Juanita Farmer, CPA

Recordkeeping Tips for Small Business Owners

The key to avoiding headaches at tax time is keeping track of your receipts and other records throughout the year. Whether you use an excel spreadsheet, an app, an online system or keep your receipts organized in a folding file organized by month, good record-keeping will help you remember the various transactions you made during […]

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June 10, 2019 | Juanita Farmer, CPA

How the Sharing Economy Affects Your Taxes

If you’ve ever used–or provided services for– Uber, Lyft, Airbnb, Etsy, Rover, or TaskRabbit. then you’re a member of the sharing economy and it could affect your taxes. The good news is that if you’ve only used these services (and not provided them), then there’s no need to worry about the tax implications. However, if […]

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May 29, 2019 | Juanita Farmer, CPA

Delinquent Tax Debts Could Affect Passport Renewal

As a reminder, individuals with “seriously delinquent tax debts” are subject to a new set of provisions courtesy of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015. These provisions went into effect in February 2018. The FAST Act requires the IRS to notify the State Department of taxpayers the IRS […]

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May 16, 2019 | Juanita Farmer, CPA

What to Do if You Missed the Tax Deadline

Monday, April 15, 2019, was the tax deadline for most taxpayers to file their tax returns. If you haven’t filed a 2018 tax return yet, it’s not too late. First, gather any information related to income and deductions for the tax years for which a return is required to be filed, then prepare your return. […]

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April 29, 2019 | Juanita Farmer, CPA

The Qualified Small Business Stock Exclusion

As the driving force in today’s economy, small businesses benefit from numerous tax breaks in the tax code. One of these, the Qualified Small Business Stock (QSBS), was made permanent by the PATH Act (Protecting Americans from Tax Hikes Act of 2015). If you’re a small business investor, here’s what you need to know about […]

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April 22, 2019 | Juanita Farmer, CPA

Scam Alert: Fake Calls from Taxpayer Advocate Service

Like clockwork, every year, there’s a new twist on old scams. This year, it is the IRS impersonation phone scam whereby criminals fake calls from the Taxpayer Advocate Service. The TAS is an independent organization within the IRS that help protect your taxpayer rights. TAS can help if you need assistance resolving an IRS problem, […]

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April 10, 2019 | Juanita Farmer, CPA

Six Tips for Last-Minute Tax Filers

Earlier is better when it comes to working on your taxes but many people find preparing their tax return to be stressful and frustrating and wait until the last minute. Complicating matters this year is tax reform and the newly redesigned Form 1040. If you’ve been procrastinating on filing your tax return this year, here […]

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