It’s The Season For Tax Planning, Preparation, And Rectifying Past Mistakes With Tax Attorney, Stephen Moskowitz
Tax stress can lead to illness, depression, divorce, and even suicide, according to Stephen Moskowitz, San Francisco tax attorney. However, there are simple solutions to many people’s greatest tax problems, and it all starts with education. With the 2020 tax season already well underway, Stephen Moskowitz is setting out to shed light on some of the greatest tax misconceptions and offer advice for current and delinquent taxpayers.
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Choose a tax preparer wisely. When selecting a tax preparer, distinguish between someone who is simply going to take whatever forms they have and move the numbers around to generate a tax return versus someone who will show one where they can be more strategic and point them in the direction of savings for both the current year and the previous year.
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Each year, review the last three years of returns. This is especially important if meeting with a new tax preparer with fresh eyes. Many people don’t know that they have three years to go back and correct their past federal tax filings. This means that they can rectify a mistake or take advantage of benefits they did not know they had three years ago.
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Take advantage of new 2021 laws when filing 2020 taxes. In the last year, many new laws have been introduced that can greatly affect the amount one will pay in taxes. For example, the CARES Act changed the laws regarding net operating losses. Now, businesses that lost money in 2018, 2019, or 2020 can go back 5 years in the past and reclaim the taxes they paid. Suppose a business lost money in 2020, 2019, or 2018, they now have the option to go back and offset those losses against their income starting in 2014 for up to five years moving forward and recover the taxes paid on that amount.
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Analyze one’s records with a tax preparer. According to Moskowitz, “Most people cheat, they cheat themselves by not taking all the benefits that they’re legally entitled to, or they underestimate what they’ve spent.” By combing through their records, business owners may realize the areas in which they missed benefits, but most importantly this serves as means of auditing the business practices that were bringing in the most revenue. For example, a business owner may have spent $10K on entertaining clients in 2020, but if they realize that the clients who they treated to a meal had a higher retention rate, they’ll be better informed to make wise business decisions in the future.
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If a person hasn’t paid taxes in years…all is not lost. As a tax attorney, a large part of Moskowitz’s practice is composed of individuals who have been delinquent on their taxes for 5 or 10 years or more. People can literally worry themselves sick about such a situation and each year that goes by without addressing it, matters only worsen. Moskowitz cannot stress enough the importance of taking action. “The government is willing to work with you; however, they will be much more amenable if you approach them first, instead of waiting until you’re caught red-handed.” Those who owe taxes could have their income and assets seized. Fortunately, there are options. In some cases, the person or business may qualify for an “Offer in Compromise”, meaning that the taxpayer will only pay a portion of what is owed and the government will forgive the rest. Additionally, the delinquent taxpayer may be able to work out a deal in which they don’t pay until their busy season of the year or set up monthly installments of their owed taxes. The bottom line: all is not lost. Everyone has options, and with the help of an experienced tax attorney, one can shed the burden of stress and fear they’ve been carrying for years.
For Stephen Moskowitz, it all comes down to education. “A solid foundation of education regarding tax matters can be the difference in savings, eliminating stress, and improving wellbeing.”
To learn more about preparing for tax season or repairing several years of delinquency, visit www.moskowitzllp.com.
Media Contact
Company Name: Moskowitz LLP
Contact Person: Steve Moskowitz
Email: Send Email
Phone: 415.394.7200
Address:One Market Street, Spear Tower, 36th Floor
City: San Francisco
State: CA
Country: United States
Website: http://www.moskowitzllp.com/
