2017 National Tax Conference – Washington D.C.

2017 National Tax Conference – Washington D.C.

Post by: Eeliffee Garcia

I recently attended a national tax conference with the National Association of Tax Professionals in Washington D.C. NATP is the largest nonprofit organization, with members in all 50 states, focusing specifically on federal tax preparation. NATP is an IRS Tax Pro Association Partner.

This conference was a 4-day event with 16 sessions on specific tax matters from auditing techniques, retirement planning to IRS debt negotiation. These sessions are taught by top industry leaders that include practicing CPAs, Enrolled Agents, Certified Financial Planners and attorneys. All attendees enjoyed the presence of the IRS commissioner John Koskinen who allowed us to ask any question we had in relation to procedures, grievance or concerns we may have as tax professionals in representation of our clients.

Identity theft and internet crime is a big thing, and cyber-security was part of one of the sessions I took with Larry Gray CPA. For the session, he brought an IRS Criminal Investigation agent as special guest to discuss the importance of safeguarding our clients’ data. Larry provided us with a manual to tweak and follow. How secure is your personal data? Ask your current tax professional about data security and what methods is he/she using.

Recently I was nominated to serve with the board of directors of the NATP – Texas Chapter and it was an honor being able to represent my state in Washington D.C. If you’re a tax professional and would like to be a member of this great organization please leave me your contact information so that I can forward you more the details.

Texas board member plate

This was a great learning experience that has enriched me as a tax professional to grow and better serve my clients with the quality of service they deserve. Until next time.

DOWNLOAD the national conference brochure if you want to have an idea what the conference is like.

 

If you need assistance with your business finances or taxes feel free in contacting us at Business Solution Center | Eeliffee@bsctexas.net | 956-466-4503 in Brownsville Texas.

Investing is not only for the rich

Investing is not only for the rich

Post by Eeliffee Garcia

Many people think of the term “Investment” as a financial activity for the rich, some imagine Wall Street films. But the reality is that investing can be done without millions of dollars in your bank. Can you save $100 a month?

Why consider investing?

1.     Future goals. Most people have goals, for example buying a house, children’s education or even save up to invest in a business venture.

2.      Passive income. This is money that you receive through an investment in a business or financial account such as; rent, dividends from a business or stock, interest income from a retirement/life insurance account or better; go global and sell an e-book or an online course. These activities don’t necessary require you to be active in. And if done properly with the right amount of investment; in your retirement you’ll just sit back, sip a nice cold drink with a beautiful beach front in the Yucatan, Mexico.

3.     Retirement stability. In 10-15 years from now we are not certain about the stability of the federal government. Every year more and more retirees are starting to notice less in Social Security benefits. Will you have enough money to live decently during retirement?

How to start?

1.     Review your budget. First set up a budget if you haven’t’ done so. Review your cash inflows and outflows and see where you can improve to save money.

2.     Talk to an expert. An expert in finance is a professional dedicated to advising clients on how to manage or invest their money for their future well-being. And if you’re a business owner then talk to your accountant about the possibilities of investing.

3.     Banks and independent firms. Most major banks have investment advisors that can help. It may be easier to manage all your finances under one roof. However, there are independent investment firms that work with national companies dedicated to retirement, life insurance and investments. I personally like independent firms because I enjoy the personalized customer service and I stick to the same professional for the longest of time.

DISCLAIMER: I am not a registered financial adviser/broker with any investment company, but, as a business and tax advisor part of my work involves helping my clients invest for the sole purpose of saving taxes and maximizing their after-tax wealth.

 

If you need assistance with your business finances or taxes feel free in contacting us at Business Solution Center | Eeliffee@bsctexas.net | 956-466-4503 in Brownsville Texas.

Don’t let your spouse’s IRS debt hurt your tax refund.

Don’t let your spouse’s IRS debt hurt your tax refund.

Post by Eeliffee Garcia

It’s not uncommon to marrying into debt. For example; past due student loans, child support or back taxes from your spouse can affect your tax refund. The IRS will garish a refund on a joint return to pay off any pending balances.

But don’t worry, there are some options available to protect your portion of the refund as a spouse.

Option 1: INJURED SPOUSE RELIEF

This option will protect the portion of your refund if you file IRS Form 8379, “Injured Spouse Allocation”. You can either file the form along with your joint tax return to prevent the initial IRS garnishment or file it after the IRS advises you that they have withheld your refund.

Two of the most important things NEEDED to qualify for this option is:

  1. Must report income from the same tax year that is being filed
  2.  Must have had taxes withheld from your employer or have overpaid estimated tax payments if self-employed.

WARNING: If you live in a community property state like TEXAS, then the IRS may consider your spouse’s past debt obligations as yours relying on state law. It is important to consult with a tax professional to see where you stand.

Option 2: MARRIED FILING SEPARATE

This is another good option for married couples but with less advantages.  This tax filing option is available and should be used instead as filing as single. It’s not a good idea to be switching from single to married and then back to single. You’ll make things worse. The options you should be using is called “married filing separate”.

With this option, you’re basically separating all your income and taxes from that of your spouse. Consequently, IRS won’t garnish any of your tax refund to satisfy your spouse’s debt.

PROS: Avoid liability that is not yours

CON: Certain tax credits won’t be available unless filing jointly.

More information can be found with the IRS.

https://www.irs.gov/uac/seven-facts-about-injured-spouse-relief

 

If you need assistance with your business finances or taxes feel free in contacting me at Business Solution Center | Eeliffee@bsctexas.net | 956-466-4503 in Brownsville Texas.