MK Vargas, LLC

Having the right estate planning documents in place gives you peace of mind and provides clarity for your loved ones during difficult times. That should start with a will, which designates who receives your assets and who becomes guardian of your minor children. Without it, state law decides. Also, consider a financial power of attorney and a medical power of attorney. They authorize someone to handle financial matters on your behalf if you’re unable to do so and make medical decisions for you if you’re incapacitated. Contact us at (512) 837-5432 with questions.

Struggling with the IRS? Dealing with back taxes, wage garnishments or threatening IRS letters can be overwhelming. But you don’t have to face it alone. We can help with tax resolution issues by negotiating with the IRS on your behalf. Perhaps you need to have a payment plan set up that works for you. In some cases, we can explore an Offer in Compromise to settle your tax debt for less. You deserve a fresh start. Contact us at (512) 837-5432 for help.

What does it mean if you receive a CP24 notice from the IRS? Don’t panic. It’s probably not bad news. The IRS sends this notice when the amount of tax paid on a taxpayer’s return doesn’t match its records of estimated tax payments posted. A CP24 generally will inform you that the IRS has corrected your return and will be refunding the overpaid balance, usually in four to six weeks. If you already qualify for a refund and haven’t yet received it, the overpayment will likely be added to your refund. However, if you owe other tax, the IRS will apply the balance to that debt first. Contact us at (512) 837-5432 with questions and to help avoid errors in the future.

When planning your estate, start early and update often. It’s crucial to have a plan that grows with you because financial landscapes shift, tax laws change and life circumstances evolve. Here are 5 quick tips. 1) Structure assets to minimize taxes and maximize wealth transfers. 2) Consider trusts to protect assets, control distributions and avoid probate. 3) Ensure accounts (bank, retirement, insurance) have up-to-date beneficiaries. 4) Use annual gift tax exclusions to reduce your taxable estate. 5) Update documents when life changes occur. Contact us at (512) 837-5432 for assistance.

If you itemize deductions and your unreimbursed medical expenses exceed 7.5% of your adjusted gross income, you can deduct the amount exceeding that “floor.” But many people don’t itemize, and the floor can be difficult to exceed. Fortunately, there may be another way for you to save taxes in relation to health care costs: Contributing to an HSA or an FSA. Wondering how you can maximize your tax savings? Call us at (512) 837-5432.

Generally, if you're over age 59½, withdrawals of Roth IRA earnings are tax-free. But there’s one more requirement: Your Roth must have been open at least 5 years. The countdown clock starts on Jan. 1 of the year you made your very first Roth IRA contribution; it doesn’t apply to each contribution separately. Have questions? Let’s talk before you launch any Roth IRA withdrawals. Contact us at (512) 837-5432.

Determining the correct tax filing status isn’t always straightforward. That’s especially true if the parents of a young child live together and aren’t married. Can both parents claim the more favorable head of household (HOH) status? According to the IRS, the answer is no. Only one parent can claim HOH status for a qualifying child. To be eligible, a parent must furnish more than half the cost of maintaining a home for themselves and a child. If both parents contribute equally, the IRS applies a tiebreaker rule to determine who can file with HOH status. Learn more by visiting the IRS at bit.ly/3T5JUp5, or contact us at (512) 837-5432 with questions.

Tax savings alert for employers: The Work Opportunity Tax Credit (WOTC) can help your business save thousands in taxes. It involves hiring individuals from targeted groups, including veterans, ex-felons, the long-term unemployed and SNAP recipients. The maximum credit is generally $2,400 per eligible adult employee. But it can be as much as $9,600 for certain veterans. It’s a win-win: You can support your community while improving your bottom line! Let’s talk about how your business can take full advantage of this powerful credit. Contact us at (512) 837-5432 to learn more.

Proper payroll recordkeeping is critical for every business to ensure tax compliance and guard against litigation. Most companies must keep information regarding federal income, Social Security and Medicare taxes for at least four years after the due date of an employee’s personal income tax return for the year in which the payment was made. This is known as the “records-in-general” rule, and various data and documents fall under it. Contact us at (512) 837-5432 to schedule a review of your payroll recordkeeping processes today!

Do you use a vehicle for business purposes? You may be able to deduct related expenses using one of two methods: the standard mileage rate or the actual expense method. The standard mileage rate offers simplicity: You just multiply business miles driven by the IRS rate, which is 70 cents per mile in 2025. Prefer tracking every cost? Use the actual method to deduct gas, oil, maintenance, insurance and more. Choose the method that saves you the most time and money! Contact us at (512) 837-5432 to help decide what's best for your situation.

The IRS Whistleblower Office (WBO) plays a key role in tax collection. The federal tax system relies on voluntary compliance, investigations, data analytics and information from people with knowledge of noncompliance. A tip that leads to the collection of proceeds may result in a valid claim for a cash award. What makes a claim valid? To qualify for an award, a claim must provide specific and credible information regarding tax underpayments or violations. Generally, an award ranges from 15% to 30% of the proceeds collected that are attributable to information from the tipster. Contact us with questions at (512) 837-5432 and learn more about the WBO claim process here: https://bit.ly/3RleVWh

Thinking about what you’ll do with your business when you’re ready to move on to something else or retire? Common exit strategies include buy-sell agreements, family succession, management buyouts, employee stock ownership plans and sales to outside buyers. Each has unique benefits and tax implications. But to be successful, all require planning well in advance of your target exit date. Call us at (512) 837-5432 to start discussing the best strategy for achieving your goals.