Is "Crowdfunding" Taxable?
08 / 08 / 22

Did you know that “crowdfunding” may be taxable?  “Crowdfunding” is when a project or venture is funded by many small amounts of money raised from a large number of people.  This typically takes place online.  Often times, “crowdfunding” websites are used.  These include sites such as Kickstarter, Indiegogo, Crowdfunder, Donorbox, Paypal, Facebook Fundraising, and GoFundMe. 

Attention Teachers:  Back-to-School Tax Breaks
08 / 03 / 22

Teachers:  did you know that the IRS offers tax deductions to educators who spend their own funds on classroom supplies?  The IRS Educator Expense Deduction allows teachers and administrators to deduct costs of technology, supplies, and training from their taxes. 

The Employee Retention Credit
07 / 28 / 22

The Employee Retention Credit (“ERC”) enables employers to claim a percentage of wages paid to an eligible employee after March 12, 2020, and before October 1, 2021, as a refundable tax credit.  This credit was originally created under the Coronavirus Aid, Relief, and Economic Security Act (CARES) and has been extended over the last 2 years through various other pieces of legislation such as the Taxpayer Certainty and Disaster Relief Act of 2020, American Rescue Plan, and the Infrastructure and Jobs Act.

Is Your Income-Producing Activity a Business or a Hobby?
07 / 14 / 22

Hobbies are great – in addition to benefiting our mental health by reducing stress, enabling social connection, and increasing happiness, hobbies can also generate some extra income. Here at Bryson Law Firm, LLC, we’ve seen many Taxpayers earn money from a hobby – landscaping, woodworking, embroidery, sewing, crafting – and it’s important to know that if your hobby produces income, it must be reported to the IRS on your tax return. Here are a few tips to make sure you stay compliant with your tax obligations so that you can continue to enjoy your hobby without the stress of a tax problem.

What is the IRS Fresh Start Program / Fresh Start Initiative?
07 / 14 / 22

We get contacted all the time by Taxpayers who are looking to take advantage of the IRS’ “Fresh Start Program.”  Thanks to many national tax relief outfits, the “Fresh Start Program” has gained a reputation of being a quick and easy way to setting a tax debt for “pennies on the dollar.”  While such settlement offers are possible to Taxpayers who qualify, it’s important to know what the IRS’ “Fresh Start Program” actually entails.  Here’s a breakdown:

It
06 / 23 / 22

We are already halfway through 2022 – time flies!  As shared across our website and with each and every one of our clients – ensuring that you are up to date with filing and payment obligations is crucial when resolving a back tax matter.  The IRS requires that you be able to file and pay your taxes on time moving forward before considering any resolution request for outstanding balances owed.  It is always a challenge when a taxpayer opts to wait until the end of the year to tackle this – chances are, if you wait until December or January, you may be surprised and unprepared for the amounts owed and it may be tough to come up with the funds needed to cover that tax bill.  That’s why we’re giving you this mid-year reminder – it’s time to perform a MID-YEAR TAX CHECK-IN. 

What is an IRS Enrolled Agent?
06 / 07 / 22

Did you know that Bryson Law Firm, LLC and Bryson Accounting and Tax Service, LLC have several IRS Enrolled Agents on the Team here at Bryson Law Firm, LLC?  We frequently get the question – “what is an Enrolled Agent?” – so here’s what you need to know. 

An Enrolled Agent is a Tax Professional who has been federally authorized to practice before the IRS on issues such as audits, collections, and appeals.  There are a few ways to become an Enrolled Agent – complete a 3-part IRS exam OR through experience as a former IRS employee.  The exam covers items located in the Internal Revenue Code, forms and publications, IRS tax forms and their accompanying instructions, and the Treasury Department Circular 230.  The 3 parts are personal tax issues, business tax issues, and procedural issues and representing clients.  If an Enrolled Agent becomes one through their previous experience in working for the IRS, it requires 5 years in a position that required extensive knowledge of the tax code and its applications.  Enrolled Agents also must pass a “suitability check” which includes tax compliance and a criminal background check. 

The IRS states that “Enrolled Agent status is the highest credential the IRS awards.  Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every 3 years.” 

As mentioned previously, Enrolled Agents can handle all different kinds of tax matters and can represent Taxpayers before the IRS.  Like Tax Attorneys and Certified Public Accountants, Enrolled Agents can appear in place of Taxpayers that they represent.  The IRS Restructuring and Reform Act of 1998 offers a limited client privilege for confidentiality between the Enrolled Agent and clients on audit and collections matters. 

We have Enrolled Agents who have sat for and passed the 3-part exam and also have Enrolled Agents who gained this certification via IRS employment.  Together, they bring to our office an insider perspective, applying their experience and knowledge gained as a former IRS employee or through extensive study of the IRS’ code, rules, and regulations to our Clients’ tax resolution matters. 

Here is what Enrolled Agents Kayla Lettow and Robert Lettow have to say about working with Bryson:

Interested in working with an IRS Enrolled Agent on your tax matters?  Contact our office today for a free, initial consultation.    

The IRS Uses Artificial Intelligence Bots to Answer Taxpayer Phone Calls
06 / 07 / 22

The IRS announced last week that they will be handling a greater volume of inbound calls by automation in an effort to free up their Call Center employees for more complex requests.  The call will be with an artificial intelligence bot.  This bot is to be able to authenticate a taxpayer’s identity and assist taxpayers in setting up a payment plan for tax balances below $25,000 without having to speak with an IRS employee.

The IRS Destroyed Data on 30 Million Taxpayers
06 / 06 / 22

The IRS faced significant struggles over the last few years keeping up with return and tax correspondence processing after the backlog they returned to work to after the COVID-19 pandemic shutdowns.  The TIGTA report states that it’s this backlog and the IRS’ inability to catch up that ultimately led to the decision to destroy documents.  Another explanation provided was that “antiquated technology” forced the IRS to dispose of these paper documents due to a “software limitation”.  One final reason provided – to make room for new documents relevant to the 2021 return filings. 

Audit Rates Are on the Rise for High-Income Taxpayers
06 / 06 / 22

The Internal Revenue Service recently released a report which indicates that they are auditing tax returns for high-earning Taxpayers much more aggressively than they have in the past several years.