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It’s not all about the IRS: How to Best Represent Your Client through the NYS Audit and Collections Tips from a former deputy commissioner at the NYSDTF for how to best represent your clients when dealing with NYS auditors and enforcement agents. We will cover tools for representing your client through a NYS audit, including how to communicate with the department, streamlining audit inquiries, and...

Hi dear clients and friends! We are currently closed due to office renovations. However, please call to contact either Maricela or me for any business issues. We encourage to email me at [email protected] or MARICELAMORA.M@HOT MAIL.COM to contact us.
We expect to return to normal operation by June 1, 2022
Franklin
212 567-7113

Tips to help taxpayers hire a reputable tax preparer

The tax filing deadline less than a month away. The IRS reminds all taxpayers but especially those who haven’t yet filed, to choose a tax return preparer wisely. Taxpayers are responsible for all the information on their income tax return regardless of who prepares the return.

Here are some tips to remember when selecting a tax return preparer:

Check the preparer's qualifications. People can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps taxpayers find a tax return preparer with specific qualifications. The directory is a searchable and sortable listing of preparers.

Check the preparer's history. Taxpayers can ask the local Better Business Bureau about the preparer. Check for disciplinary actions and the license status for credentialed preparers. Here’s how to check on specific types of preparers:

Enrolled Agents: Go to the verify enrolled agent status page on IRS.gov.
Certified Public Accountants: Check with the State Board of Accountancy.
Attorneys: Check with the State Bar Association.
Ask about service fees. People should avoid tax return preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition.

Ask to e-file. To avoid pandemic related paper delays, taxpayers should ask their preparer to file electronically and choose direct deposit.

Make sure the preparer is available. Taxpayers may want to contact their tax return preparer after this year's April 18 due date.

Provide records and receipts. Good preparers will ask to see a taxpayer's records and receipts. They'll ask questions to figure things like the total income, tax deductions and credits.

Never sign a blank return. Taxpayers should not use a tax return preparer who asks them to sign a blank tax form.

Review before signing. Before signing a tax return, the taxpayer should review it. They should ask questions if something is not clear. Taxpayers should feel comfortable with the accuracy of their return before they sign it.

Review details about any refund. Taxpayers should confirm the routing and bank account number on their completed return if they're requesting direct deposit.

Ensure the preparer signs the return and includes their PTIN. All paid tax return preparers must have a Preparer Tax Identification number. By law, paid preparers must sign returns and include their PTIN on the return they file. The taxpayer's copy of the return is not required to have the PTIN on it.

Report abusive tax preparers to the IRS. Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. People can report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer

IRS opens 2019 tax filing season for individual filers on Jan. 27, 2020 (MONDAY)



WASHINGTON ― The Internal Revenue Service confirmed that the nation’s tax season will start for individual tax return filers on Monday, Jan. 27, 2020, when the tax agency will begin accepting and processing 2019 tax year returns.

The deadline to file 2019 tax returns and pay any tax owed is Wednesday, April 15, 2020. More than 150 million individual tax returns for the 2019 tax year are expected to be filed, with the vast majority of those coming before the traditional April tax deadline.

“As we enter the filing season, taxpayers should know that the dedicated workforce of the IRS stands ready to help,” said IRS Commissioner Chuck Rettig. “We encourage taxpayers to plan ahead and use the tools and information available on IRS.gov. The IRS and the nation's tax community are committed to making this another smooth filing season."

The IRS set the Jan. 27 opening date to ensure the security and readiness of key tax processing systems and to address the potential impact of recent tax legislation on 2019 tax returns

Taxpayers with expiring ITINs should renew them now

Taxpayers with expiring individual taxpayer identification numbers should renew their number ASAP. There are nearly 2 million ITINs set to expire at the end of 2019. Taxpayers with an expiring number should renew before the end of this year. This will help avoid unnecessary delays related to their tax refunds next year.

ITINs are used by taxpayers required to file or pay taxes, but who aren’t eligible for a Social Security number.

Here’s info about which ITINs will expire and how taxpayers renew them.

These ITINs expire on Dec. 31, 2019:
Those not used on a federal tax return at least once in the last three consecutive years.
Numbers with middle digits 83, 84, 85, 86 or 87 not already renewed.

ITINs with the middle digits 83, 84, 85 or 86, 87 need to be renewed, even if it was used it in the last three years.

Taxpayers whose ITIN is expiring and who expect to have a filing requirement in 2020 must renew their number. Others don’t need to take any action.

The IRS is sending notices to affected taxpayers. This is a CP48 Notice. It explains the steps to renew the ITIN.

Taxpayers who receive the notice after renewing their ITIN don’t need to take further action unless another family member is affected.

ITINs with middle digits of 70 through 82 have previously expired. Taxpayers with these ITINs can still renew at any time, if they haven’t already.

Those who receive a renewal letter from the IRS can renew the family’s ITINs together. They can do so even if family members have an ITIN with middle digits that aren’t expiring. Family members include the tax filer, spouse and any dependents.

To renew an ITIN, a taxpayer must complete a Form W-7 and submit all required documentation. They don’t need to attach a tax return. However, taxpayers must note why they need an ITIN on the W-7.

There are three ways taxpayers submit the renewal application:
Mail the form to the IRS address listed on the Form W-7 instructions.
Work with a Certified Acceptance Agent authorized by the IRS to help taxpayers.
Make an appointment at an IRS Taxpayer Assistance Center to have each applicant’s identity authenticated in person.

These summer activities can affect next year’s tax returns

Summertime activities often affect the tax returns people file the following year. Here are some things taxpayers do during the summer along with tips they should consider now:

Getting married.
Newlyweds should report any name change to the Social Security Administration. They should also report an address change to the United States Postal Service, their employers, and the IRS. This will help make sure they receive documents and other items they will need to file their taxes.

Sending kids to summer day camp.
Unlike overnight camps, the cost of summer day camp may count towards the child and dependent care credit.

Working part-time.
While summertime and part-time workers may not earn enough to owe federal income tax, they should remember to file a return. They’ll need to file early next year to get a refund for taxes withheld from their checks this year.

Normally, employees receive a Form W-2, Wage and Tax Statement, from their employer to account for the summer’s work. They’ll use this to prepare their tax return. They should receive the W-2 by January 31 next year. Employees will get a W-2 even if they no longer work for the summertime employer.

Summertime workers can avoid higher tax bills and lost benefits if they know their correct status. Employers will determine whether the people who work for them are employees or independent contractors. Independent contractors aren’t subject to withholding, making them responsible for paying their own income taxes plus Social Security and Medicare taxes.

Franklin D Pacheco, EA is licensed to practice before the IRS & NY

Press Release
Recordkeeping Tips to Ensure You Receive Valuable Tax Credits
More than 506,000 taxpayers claimed over $155 million in New York State Child and Dependent Care credits for tax year 2017. The average claimed: more than $306
The New York State Department of Taxation and Finance today reminded taxpayers to keep good records throughout the year to ease the process for claiming tax credits on their personal income tax returns. For example, taxpayers should save proof of childcare expenses this summer to support eligibility for the child and dependent care credit.

“Summer day-camp expenses for a child or dependent may qualify you for the Child and Dependent Care Credit,” said New York State Commissioner of Taxation and Finance Michael Schmidt. “This valuable credit, which varies based on income, can help reduce expenses involved in raising a child or caring for a dependent. I encourage all New Yorkers to check their eligibility and keep the required records to claim this credit.”



Keep good records



You must provide proof of how much money you spent on summer day-camp to support your claim for the tax credit. Examples:



copies of cashed checks that were written to and cashed by the summer camp; or
an itemized statement issued from the camp listing each payment received from you.


See the two-page DTF-216, Claim for Child and Dependent Care Credit, for more information.



The Tax Department will not accept the following as proof:



statement or document indicating that money was paid by someone else (such as a friend or relative) directly to the summer camp
handwritten receipts that weren’t issued at the time of payment and can’t be verified by the Tax Department
a statement, without any additional supporting documentation, that you made cash payments (or the camp received cash payments)


You don't need a scanner to make copies of your documentation. You can use your smartphone to take a digital picture.



Guidelines



If you qualify to claim the federal child and dependent care credit, you’re entitled to claim New York State's credit. The New York State credit ranges from 110% of the federal credit, for those with incomes under $25,000, to 20% if their income is over $150,000. A New York City Child Care Tax Credit is also available to New York City residents with income of $30,000 or less with a child or children under age 4.



Dependent-care benefits from an employer will reduce the credit amount; these benefits are included on the recipient’s Form W-2, Wage and Tax Statement.

Good tax planning includes good recordkeeping

Tax planning should happen all year long, not just when someone is filing their tax return. An important part of tax planning is recordkeeping. Well-organized records make it easier for a taxpayer to prepare their tax return. It can also help provide answers if a taxpayer’s return is selected for examination or if the taxpayer receives an IRS notice.

This tip is one in a series about tax planning. These tips focus on steps taxpayers can take now to help them down the road.

Here are some suggestions to help taxpayers keep good records:

Taxpayers should develop a system that keeps all their important info together. They can use a software program for electronic recordkeeping. They could also store paper documents in labeled folders.

Throughout the year, they should add tax records to their files as they receive them. Having records readily at hand makes preparing a tax return easier.

It may also help them discover potentially overlooked deductions or credits. Taxpayers should notify the IRS if their address changes. They should also notify the Social Security Administration of a legal name change to avoid a delay in processing their tax return.

Records that taxpayers should keep include receipts, canceled checks, and other documents that support income, a deduction, or a credit on a tax return.

Taxpayers should also keep records relating to property they dispose of or sell. They must keep these records to figure their basis for computing gain or loss.

In general, the IRS suggests that taxpayers keep records for three years from the date they filed the return.

For business taxpayers, there's no particular method of bookkeeping they must use. However, taxpayers should find a method that clearly and accurately reflects their gross income and expenses. The records should confirm income and expenses. Taxpayers who have employees must keep all employment tax records for at least four years after the tax is due or paid, whichever is later.
The IRS has several online tools taxpayers can use to stay updated on important tax information that may help with tax planning. In addition to visiting IRS.gov, they can download the IRS2Go app, watch IRS YouTube videos, and follow the IRS on Twitter and Instagram

Here’s what taxpayers should know before visiting an IRS office

Tax issues can come up any time of the year for taxpayers. Maybe they have to file an amended tax return, or maybe they got a notice from the IRS. Taxpayers who decide they need to visit an IRS Taxpayer Assistance Center for in-person help with their tax issues should do a couple things first.

First things first, taxpayers will need to call 844-545-5640 to schedule an appointment. All TACs provide service by appointment. The Contact Your Local Office tool on IRS.gov helps taxpayers find the closest IRS TAC, the days and hours of operation, and a list of services the TAC provides.

Once they make an appointment, taxpayers will receive an automated email to the address they provide. The email will confirm the day and time of their appointment. Taxpayers should consider the self-service options on IRS.gov before calling for an appointment. Taxpayers can resolve many questions online without taxpayers having to travel to a Tax Assistance Center.

Taxpayers checking on a tax refund status can:

Use the “Where’s My Refund?” online tool.
Call 800-829-1954 anytime to access the audio version of this tool.
Taxpayers who need answers to tax questions can:

Use the Interactive Tax Assistant, which asks the taxpayer a series of questions and provides answers based on their input.
Check out Publication 17, which covers a broad range of topics and updates on tax law changes.
Visit the IRS Tax Map to find tax information on a variety of tax topics.
Visit IRS.gov for info about what to do when a letter from the IRS arrives.
View Publication 5136, IRS Services Guide for additional ways taxpayers and tax professionals can get help.
Taxpayers who need to make a payment can:

Use IRS Direct Pay on IRS.gov. This is a free, secure electronic method to pay from a checking or savings account.
Visit the Electronic Federal Tax Payment System for online and phone options.
Pay when using tax software when e-filing. Taxpayers can pay online, by phone, or with a mobile device using the IRS2Go app.
View their balance online or refer to the information in the notice they received to determine the amount owed. They can also access their tax account to view recent payment history.
Make a cash payment in-person at more than 7,000 retail stores nationwide.
Mail a personal, cashier’s check or money order made payable to “U.S. Treasury” along with a completed Form 1040-V, Payment Voucher. Taxpayers should never send cash.

Taxpayers who can’t pay their taxes should still file on time

With the April tax filing due date just a few days away, taxpayers should remember to both file and pay any taxes they owe by the deadline. Taxpayers who do not file and pay timely will see their tax debt grow. In fact, penalties and interest can cause a taxpayer’s debt to grow by more than thirty percent in just a few months.

Here are some tips for taxpayers who owe tax, but who can’t immediately pay their tax bill. Taxpayers should:

File their tax return or request an extension of time to file by the April deadline.
Taxpayers who owe tax and do not file their return on time or request an extension may face a failure-to-file penalty for not filing on time.

Pay as much as possible by the April due date.
Whether they are filing a return or requesting an extension, taxpayers must pay their bill in full by the April filing deadline. Taxpayers who do not pay their taxes on time will face a failure-to-pay penalty. Taxpayers should remember that an extension of time to file is not an extension of time to pay.

Set up a payment plan as soon as possible.
Taxpayers who owe, but cannot pay in full by the deadline don’t have to wait for a tax bill to request a payment plan. Taxpayers can apply for a payment plan on IRS.gov. Taxpayers can also submit a payment plan request in writing using Form 9465, Installment Agreement Request.

Franklin D Pacheco, EA We are fully licensed by the IRS to represent taxpayers in all tax matters. Make an appointment by calling 212 567-7113

Ten things for taxpayers to think about when choosing a tax preparer

It’s the time of the year when many taxpayers choose a tax preparer to help file a tax return. These taxpayers should choose their tax return preparer wisely. This is because taxpayers are responsible for all the information on their income tax return. That’s true no matter who prepares the return.

Here are ten tips for taxpayers to remember when selecting a preparer:

Check the Preparer’s Qualifications. People can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps taxpayers find a tax return preparer with specific qualifications. The directory is a searchable and sortable listing of preparers.
Check the Preparer’s History. Taxpayers can ask the Better Business Bureau about the preparer. Check for disciplinary actions and the license status for credentialed preparers. For CPAs, people can check with the State Board of Accountancy. For attorneys, they can check with the State Bar Association. For Enrolled Agents, taxpayers can go to the verify enrolled agent status page on IRS.gov or check the directory.
Ask about Service Fees. People should avoid preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition. When asking about a preparer’s services and fees, don’t give them tax documents, Social Security numbers or other information.
Ask to E-File. Taxpayers should make sure their preparer offers IRS e-file. The quickest way for taxpayers to get their refund is to electronically file their federal tax return and use direct deposit.
Make Sure the Preparer is Available. Taxpayers may want to contact their preparer after this year’s April 15 due date. People should avoid fly-by-night preparers.
Provide Records and Receipts. Good preparers will ask to see a taxpayer’s records and receipts. They’ll ask questions to figure things like the total income, tax deductions and credits.
Never Sign a Blank Return. Taxpayers should not use a tax preparer who asks them to sign a blank tax form.
Review Before Signing. Before signing a tax return, the taxpayer should review it. They should ask questions if something is not clear. Taxpayers should feel comfortable with the accuracy of their return before they sign it. They should also make sure that their refund goes directly to them – not to the preparer’s bank account. The taxpayer should review the routing and bank account number on the completed return. The preparer should give you a copy of the completed tax return.
Ensure the Preparer Signs and Includes Their PTIN. All paid tax preparers must have a Preparer Tax Identification Number. By law, paid preparers must sign returns and include their PTIN.
Report Abusive Tax Preparers to the IRS. Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. People can report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If a taxpayer suspects a tax preparer filed or changed their return without the taxpayer’s consent, they should file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit.
More information: