Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses an important tax update for small businesses and self-employed individuals coming in 2025. If you receive payments through platforms like PayPal, Venmo, Shopify, Etsy, or other payment services, you will receive a 1099-K form for tax reporting purposes. Form 1099-K report payments made to merchants and […]
What is the IRS Collection Statute of Limitations?
They say that death and taxes are the only two certainties in life. However, taxes are only collectible for so long. The IRS Collection Statute of Limitations is a critical aspect of tax law that often confuses taxpayers and professionals alike. This statute dictates the timeframe within which the IRS can collect unpaid taxes. While […]
How Much Should I Offer in Compromise?
When facing substantial tax debt, an Offer in Compromise (OIC) can be a potential lifeline for resolving outstanding liabilities. The OIC allows taxpayers to settle their debt with the IRS for less than the full amount owed. However, determining the right amount to offer requires a careful evaluation of your financial situation. In this article, […]
Roth IRA Penalties: What Are They & How Do I Avoid Them?
Roth Individual Retirement Accounts (IRAs) are popular investment vehicles that offer tax advantages for retirement savings. However, it’s crucial for account holders to be aware of Roth IRA penalties to make informed financial decisions. This article will explore the various penalties associated with Roth IRAs, helping readers navigate the potential issues and optimize their retirement […]
I Overstated My Tax Deductions. Now What?
It’s easy to make mistakes when filing taxes, especially when it comes to deductions. You might accidentally overstate your tax deductions, either due to a misunderstanding of tax laws, incorrect records, or an inadvertent miscalculation. The IRS takes incorrect tax returns seriously, so it’s essential to understand what happens when you overstate your deductions and […]
Optima Newsletter – November 2024
Can I Claim My Parent as a Dependent? Caring for an elderly parent can be a financial toll, especially when you also have children to care for. Claiming a parent as a dependent can provide significant financial benefits, but there are specific IRS rules and requirements that must be met to qualify. If you’re supporting […]
Ask Phil: Should I Itemize or Take the Standard Deduction?
Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses a hot topic: itemized deductions vs. standard deduction. Which is better for you? Deciding whether to itemize deductions or take the standard deduction depends on your specific financial situation. For the 2024 tax year, the standard deduction amounts are: You may benefit from itemizing if your […]
My OIC was Rejected. Now What?
If your Offer in Compromise (OIC) is rejected by the IRS, it can feel discouraging, but you still have options. Understanding why the offer was rejected and how to proceed can empower you to pursue alternative solutions for addressing your tax debt. Here’s a detailed guide on what to do if your OIC is denied, […]
Can I Claim My Parent as a Dependent?
Caring for an elderly parent can be a financial toll, especially when you also have children to care for. Claiming a parent as a dependent can provide significant financial benefits, but there are specific IRS rules and requirements that must be met to qualify. If you’re supporting an elderly parent, understanding these rules can help […]
Can I Modify My IRS Payment Plan?
When faced with tax debt, an IRS payment plan, also known as an installment agreement, offers a lifeline. It allows taxpayers to pay off their debt in smaller, more manageable amounts over time. But what if your financial circumstances change? Can you modify an IRS payment plan, and if so, how? The answer is yes. […]