IRS Sending Earned Income Tax Credit (EITC) Warning Letters

Marci RomneyBlog

Preparers who’ve submitted returns with sketchy claims for the Earned Income Tax Credit, the Child Tax Credit Tax/Additional Child Tax Credit, and the American Opportunity tax Credit will soon receive IRS Letter 5025. This letter is designed to inquire “about questionable tax returns” and let preparers know that they have been identified, and they must meet EITC due-diligence requirements. During … Read More

Hobby Losses: How to Not Get Trapped

Marci RomneyBlog

Horse breeding losses aren’t always hit by the hobby loss disallowance.  A man who bred, trained, and showed horses has reported his losses since 1997.  So how did he do it, and what can you do? Be an expert in the field Have a plan (in this case it was to increase brand recognition) Keep good records Expand or restrict … Read More

Year End Tax Planning

Marci RomneyBlog

Individual Tax Planning When doing your individual tax planning, look ahead to the overall impact on 2019 and 2020. The end gamed is to reduce your taxes over both years. Most people, but not all, will benefit by accelerating write-offs from 2020 into 2019 while deferring taxable income.  Taxpayers who claim itemized deductions have flexibility in shifting write-offs, why can … Read More

New Version of SSN Scam

Marci RomneyBlog

The IRS has sent out a tip related to the latest twist in Social Security Numbers scams. Scammers claiming to be able to suspend or cancel the victim’s SSN is yet another attempt by con artists to frighten people into returning robocalls. (details below.) Scammers may mention overdue taxes or threaten to cancel your SSN. If you receive a call … Read More

New Rules for Cryptocurrency Investors

Marci RomneyBlog

In a new ruling, more guidance will be given to individuals on how to report income from their cryptocurrency. The guidance that has been released applies tax rules to cryptocurrency investments. Among these rules, taxpayers must track how much they bought in cryptocurrency so it can be determined how much tax is owed when they sell coins. They must also … Read More

New Regulations for Airbnb Hosts

Marci RomneyBlog

Airbnb and other similiar sites have become a popular way for real estate owners in tourist spots to make some extra cash by renting out their spaces. Many property owners could benefit if QBI made it possible for these side hustles to turn into businesses. This would result in property owners gaining a large tax deduction. To allow for these … Read More

5 Things you Should Know about the IRS

Marci RomneyBlog

It can be hard to keep up with all the changes the IRS, so we will list some more things you should take note of. High-tax states are watching for snowbirds claiming dubious residency. Residency audits are used to examine the returns from part-year residents. To survive the residency audit be sure to keep crucial documents such as bank records, … Read More

Basics of the Utah Probate Process

Marci RomneyBlog

In this article we will discuss the Utah probate: what it is, who needs it, and the steps that you will need to take to make the process as simple as possible. But first, what is a probate? “Utah Probate is the court process of wrapping up the affairs of a person who has died, paying the debts, and transferring … Read More

Learn about Important Changes to the IRS

Marci RomneyBlog

As a result of the Taxpayer First Act some changes have been made to the IRS that may affect you. Some of these changes include: The IRS is prohibited from turning over tax debts of low-income individuals to private tax-debt collectors. However, taxpayers will get notice when a third party, such as a bank or employer, is contacted. Ideas to … Read More

How to Check Your Tax Witholding

Marci RomneyBlog

With the new IRS Tax Witholding Estimator employees can ensure that their employers are witholding the correct amount from their paychecks. A “Paycheck Checkup” should be done every year to prevent an unexpected tax bill or penalty. To use the estimator you will need your most recent pay stubs and income tax return. Simply go to https://www.irs.gov/paycheck-checkup and hit “Use … Read More