Partnerships are a popular business structure for entrepreneurs looking to combine resources, expertise, and share profits. However, the taxation of partnerships can be complex, as the partnership itself isn’t taxed like a corporation. Instead, partnerships are subject to “pass-through” taxation, where the profits and losses pass through to individual partners. This guide explores how partnerships […]
How Worker Classification Affects Taxes
Understanding worker classification is crucial for both employers and workers, as it directly affects tax obligations and benefits. The way a worker is classified—whether as an employee or an independent contractor—determines who is responsible for various tax payments, what deductions are available, and how the worker must report income to the IRS. This article will […]
What To Do If You Receive IRS Notice CP71C
Receiving a notice from the IRS can be unsettling, and if you’ve received IRS Notice CP71C, it’s important to understand what it means and how to respond appropriately. This notice is a reminder from the IRS regarding an outstanding tax debt and offers information about what actions you can take to address the issue. Here’s […]
What is an Enrolled Agent?
We often hear that the tax professionals qualified to represent you before the IRS are CPAs, tax attorneys, and enrolled agents. While the first two roles are more well-known, many are still confused about what exactly an enrolled agent is. An Enrolled Agent (EA) is a federally authorized tax practitioner who has technical expertise in […]
Optima Tax Relief Named to 2024 Forbes Advisor ‘Best Of’ List for Tax Relief Services
The national tax firm was recognized for outstanding customer service, transparency, and industry leadership Optima Tax Relief is proud to announce that it has been named to the 2024 Forbes Advisor ‘Best Of’ list for Tax Relief Services. This prestigious recognition highlights Optima’s unwavering commitment to providing exceptional tax relief services to individuals and businesses […]
Can The IRS Really Take Everything I Own?
The IRS can seize your assets if you owe back taxes and fail to resolve your tax debt. This includes bank accounts, wages, and even physical property like cars or homes. Optima Tax Relief CEO, David King, and Lead Tax Attorney, Philip Hwang, provide helpful insight on how you can resolve your tax burden and […]
Q3 2024 Estimated Taxes Are Due. Are You Prepared?
As the third quarter of 2024 comes to a close, taxpayers must remember a crucial deadline: Q3 estimated taxes are due. Whether you’re self-employed, an investor, or someone with substantial income not subject to withholding, making timely estimated tax payments is essential to avoid penalties and stay on the good side of the IRS. Here’s […]
Can the IRS Seize Your State Tax Refund?
The IRS, as the federal tax collection agency, has broad powers to collect unpaid taxes. While it can garnish wages, seize assets, and levy bank accounts to satisfy federal tax debts, the question arises: Can the IRS seize your state tax refund to pay off federal tax liabilities? The answer is yes — under the […]
Tax Tips for Turo Car Sharers
Renting out your car on Turo can be a great way to earn extra income, but it also comes with tax responsibilities. If you’re a Turo car sharer, understanding your tax obligations is essential to avoid surprises come tax season. Here are some important tax tips for Turo car sharers to keep in mind. What […]
Optima Newsletter – September 2024
When Does the IRS Pay Interest on Tax Refunds? The IRS typically processes tax refunds quickly, but in some cases, there can be delays. When these delays occur, taxpayers might wonder if they’re entitled to interest on their refund. The IRS does pay interest on tax refunds under specific circumstances. However, the rules governing when […]