Windsor Locks, CT Real Estate News

By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Each year, many taxpayers choose to prepare their own tax returns. This can be an easy way to save a few hundred dollars but, it’s important to watch out for common tax filing mistakes. Tax preparation software makes some errors like addition and subtraction blunders less likely, but even the best software cannot eliminate all potential problems and human error.  If you are getting ready to file your tax return, be sure to take a second (or third) look before you hit send. Keeping a close eye out for these common tax filing mistakes is the best way to ensure the IRS does not come knocking at your door. Note: If you do get in trouble with the IRS and they claim you owe $10,o00 or more, reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Which Tax Records to Keep and For How Long. Do This and Avoid Tax Problems Later. Whether you are expecting a nice tax refund or preparing to write a big scary check, you know that April 15 is the annual tax filing deadline. What you may not know, however, is that Tax Day is every day at the IRS, and the tax agency is always reviewing the information taxpayers and business owners have provided.  That means that keeping tax records is about more than just smart bookkeeping - it is an integral form of self-protection. You see, millions of Americans get letters from the IRS stating they owe back taxes or requesting more information about their tax returns. It may be disconcerting, but the IRS has the right to request additional information months, or even years, after the return you filed ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Few things are as frightening as opening the mailbox and finding a letter from the IRS, especially when you know you owe them money. The much feared tax agency does not contact taxpayers just to say hello; receiving communication from them is not likely to be good news.   When your heart stops pounding and you get the courage to open the letter, you get another shock - in the form of a large amount due, one you cannot possibly afford. So what do you do, and how do you react?   The steps you take next could make all the difference, and here are some immediate actions you need to complete right away.     Step #1 - Stop Panicking, Take Action If you owe back taxes, our firm can help negotiate with the IRS and potentially settle your tax debt. Call us today. Our tax resolution specialists ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
No one wants to be on the bad side of the IRS, yet that is where millions of taxpayers find themselves each and every year. As enforcement efforts ramp up at the IRS, the number of letters landing in mailboxes is continuing to increase and one of them could be heading your way. If you do receive a notice from the IRS, it is important to act fast, especially if you cannot afford to pay what the IRS says you owe. You may be tempted to do nothing or ignore the situation, but every day  you wait will just make an already bad situation that much worse. The good news is you may not have to pay what the IRS says you owe! There are a number of programs designed to give taxpayers relief, in many cases allowing them to settle their tax debts for much less. But before you can enjoy that financial ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
The rise of freelancing, self-employed and gig work is one of the biggest labor stories of the last 20 years. More and more workers have been looking beyond the normal nine to five and making their own way in the world, creating an income they can rely on, one that is directly tied to their skills and abilities. COVID-19 only accelerated this trend.  Working as a freelancer or gig worker can also open a world of tax savings possibilities. From retirement plans with generous contribution limits to health savings accounts to cover the high cost of private insurance to the ability to write off office supplies and other essentials, this class of workers enjoys some truly phenomenal tax breaks. Generous Deduction or Audit Trap?One of the most generous of those tax breaks is also one of the m...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
People often dream of quitting their jobs and going into business for themselves so that they can pursue a passion and work without a boss. Self-employment can be a rewarding career decision, but it can lead to higher taxes and tax returns that are more complex that what you initially bargained for.  If you’re self-employed, it is important to understand how taxes work so you can avoid making a mistake and owing more than your fair share of taxes.  Note: If you owe back taxes and need tax relief, our firm can help! We specialize in resolving complicated self-employed and small business back tax problems. Contact our firm today!   Definition of Self-Employment The IRS considers you to be self-employed if you work as a contractor, freelancer, small business owner or are otherwise in busin...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
If you took on a side hustle last year to make ends meet and earn some extra cash, you may have found a surprise when you filed your taxes. If you did not prepare carefully, you probably ended up with a big tax bill for your troubles, possibly with penalties and interest added on. Given the unpleasant surprises of the past, you may be resigned to a life of higher taxes, all courtesy of the very side hustle you thought would help you gain financial freedom. But before you put away your driving gloves and give up on ride sharing and grocery delivery, you might want to take a second look at your situation. With the right planning and preparation, your side hustle could actually lower your tax bill, giving you an even bigger reason to keep driving, door dashing and doing whatever it takes t...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Proper tax planning is a year-round proposition. You cannot afford to wait until April to start planning your taxes and assessing your tax liability.   Knowing which factors can raise your taxes is one of the best ways to keep more money in your pocket. These five factors can unexpectedly raise your taxes owed at the end of the year.   Note: If you owe back taxes, our firm can help negotiate with the IRS and potentially settle your tax debt. Call us today. Our tax resolution specialists can navigate the IRS maze so that you have nothing to worry about.     #1 - Cashing in Your Retirement Plan There are many reasons not to cash in your retirement plan early, but the tax penalty is one of the biggest ones. If you take the proceeds from your 401(k) plan in cash instead of rolling it over ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Being an adult has its perks, from being able to rent a car and book a hotel room to the chance to earn a living and rent an apartment. But life as an adult also comes with some challenges, including the burden of filing and paying taxes. If this year is the first time you will be filing a tax return, it is important to plan ahead. Mistakes are common among first-time filers, and those blunders could delay a much-anticipated refund or even trigger an audit from the IRS.  Here are 9 of the mistakes first-time filers are likely to make - and how you can avoid them.  Note: If you or someone you know owes back taxes, our firm can help negotiate with the IRS and potentially settle your tax debt. Call us today. Our tax resolution specialists can navigate the IRS maze so that you have nothing ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
If you are working as a freelancer or gig worker, you are certainly not alone. Millions of men and women are earning extra income driving for ride sharing services, designing websites for online entrepreneurs and writing for local businesses.  Some freelancers and gig workers have even said goodbye to their traditional careers, trading the security of a steady paycheck for the freedom and flexibility of gig work and freelance clients. But whether you are freelancing full time or just for extra cash, you need to keep careful records so come tax time, you can stay out of tax trouble.  Note: If you fall behind on filing your taxes, you’re not alone and we can help. Reach out to our tax resolution firm and we’ll help you file late tax returns and negotiate with the IRS if you owe back taxes...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Tax returns can be complicated and tricky to understand. Even for a professional, it can be surprisingly difficult to get every number and detail right.  Often, you only notice the mistakes when you take a casual look at your return days after you submit it online or drop it in the mailbox. Or worse, the IRS sends you a letter telling you something is off. So, is there anything that you can do after your return is in? Actually, there's a lot that you can do. But if you don’t know where to start, it’s best to leave it to a professional. Our tax resolution specialists can navigate the IRS maze so that you have nothing to worry about. We help people who owe back taxes or have back tax debt. Call us today for a free consultation. 3 Major Types Of MistakesThere are many red flags the IRS loo...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
            A lot of our clients that come to us with back tax problems are self-employed. For one reason or another, they fall behind on their taxes. With COVID-19, small businesses have been hit the hardest and despite the government stimulus bills, there are still millions of businesses teetering on the border of failure. It’s understandable that a few of them fell behind on their taxes and we’re here to help.   Our firm specializes in tax problem resolution. We can represent you before the IRS. We serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax proble...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
If you are a procrastinator, tax filing season is probably the worst time of year. With deadlines looming, filling out all those complicated forms and making sense of an increasingly complex tax code that changes almost every year can seem like an overwhelming task. But no matter how long you put it off, the April 15 tax filing deadline will arrive, and what you do to get ready will make all the difference. Most Americans voluntarily file their tax returns and pay their taxes. Most people explain it by saying they want to pay their fair share. Others file to get a refund, claim a credit or avoid breaking the law. There are times when normally law-abiding citizens fail to file. Why? IRS research shows that sometimes people don’t file in years their filing status changes, such as due to t...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Tax returns can often be filed with incomplete or incorrect information, leading you to more tax trouble than you bargained for. If you filed early, you might have overlooked income from a temporary job or a side gig, only to get a 1099 or late W2 for the income earned.  Other filers may eventually realize that they were entitled to an extra deduction or exemption. The Internal Revenue Service routinely processes a significant number of amended returns each year and provides a specific form for changing the status of an earlier tax return. Individual income tax returns filed with the IRS can be amended up to three years after the due date of the original return by filing IRS Form 1040X. However, we strongly suggest consulting a tax resolution professional to help with your amended retur...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Tax identity theft occurs when identity thieves obtain your Social Security number and file a fraudulent tax return on your behalf. According to the Federal Trade Commission, tax identity theft is the most common form of identity theft. The FTC estimates that it costs taxpayers over $5 billion a year. Consumer advocates believe that since Social Security numbers are so readily available on the dark web, a majority of Americans are at risk. Unfortunately, most tax identity fraud victims don't realize that they have fallen victim until they try to file their return. Luckily, there are some important tips that you can follow to reduce your chances of falling victim to tax identity theft.Keep reading for tips on how to protect yourself against identity theft.Vector Tax & Accounting speciali...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
The IRS released their formal guidance yesterday on tax deductions from expenses paid for with Paycheck Protection Program finds. In April 2020, the IRS made their position known; they would not allow any deductions for expenses paid with forgiven PPP funds.  During the year I’ve written about, and been on the radio to talk about, how the IRS is wrong about this.  In December, the IRS issued another statement where they dug in their heels, saying that the expenses are not deductible and if you expect to have the loan forgiven in 2021 then you shouldn’t include the deduction on your 2020 tax returns.  I, and many other tax practitioners, and professional organizations like the American Bar Association and AICPA all disagreed with this for several reasons.  With the new stimulus provision...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
If you’ve been at all following the news, you’ve likely heard that Congress has finally agreed to a new COVID relief package that was signed by President Trump.As we have been following the news this past week I have written, deleted, and rewritten this blog at least 4 times, trying to keep up with all the changes. Now that Trump has signed the bill I am posting this blog with the items that are most likely to affect you in 2021. Stimulus Checks: The main thing that everyone has been waiting to hear about.The eligibility guidelines appear the same, but the dollar amounts have changed. Instead of $1200 for an individual or $2400 for a married couple the stimulus will be $600 per person. The per person amount also covers children. So, while the $1200 people got initially has been cut in h...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
  As we wrap up the year the last thing most people are thinking about is their taxes. But planning ahead can have a serious impact on your tax bill next year, especially if you know you’ll owe taxes. In this article, we’ll talk about some steps you must take if you know you’ll be owing taxes to the IRS or state.  Note: If you already have tax troubles or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed www.VectorTax.com  Report All Your IncomeOne of the biggest reasons people get in trouble with the IRS is their failure to report income. Oftentimes it’s an honest mistake and they simply forget about income they’ve made...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
 If you owe back taxes you might think you need a tax attorney, but that’s not necessarily always the case. Just like hiring a traditional accountant to try to resolve your tax debt might not be the best choice, hiring a tax attorney, who doesn’t specialize in tax resolution might be the same thing.  When you owe the IRS back taxes, it’s best to have the right tax relief firm representing you so you can get the best result possible. Don’t try to face the most brutal collection agency on the planet alone. You’ll be sorry you did. In this article we talk about some of the differences between a tax attorney and someone who specializes in tax relief and IRS negotiation. Note: If you already have a tax problem and owe more than $10k to the IRS or state but can’t pay in full, contact our firm...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
 For early adopters of Bitcoin, Ethereum and other popular cryptocurrencies, the profit potential has been simply stunning. While there have been some heart stopping moments and frightening ups and downs, the clear long-term trajectory has been upward. If you are one of those early adopters who profited from the rise in cryptocurrency values, you are probably feeling pretty good about your decision. But your good fortune could soon take a dark turn, one that could leave you in hot water with the IRS. After many years of taking a hands-off approach to cryptocurrency investments, the IRS is now making up for lost time. At first, the tax agency seemed unsure how to calculate virtual profits or tax cryptocurrency gains, but now the rules are largely in place, and it is time for those who pr...
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