THE IRS was underfunded under the Trump Administration. It didn’t have enough personnel to accomplish its goal. With skeleton force, audit rate declined to only 1/2 percent (less than half the returns they audited in 2010). Even with super low rates, you may still be a target if your tax return contains red flags. Let’s discuss…
1. Failing to report some income Failing to report subcontract, interest, or dividend income are easy ways to attract an audit. I know that it’s tempting not to report income without W2s or 1099s but it’s not worth it. Many audits that I’ve handles even have 1099s but are lost or misfiled. IRS received copies…
WITH a bigger budget, IRS recently hired new personnel to increase their historic low audit rates. Here are 7 targets for IRS audits: 1. Non-filers IRS estimates that nonfilers represent $39 billion in lost revenue annually. To make even worse, nonfilers leave the tax system for good. The IRS has restarted its delinquent return investigation and…
SCAMMERS become more active during tax filing season — their hunting season. The prey: your own tax preparer who has troves of social security numbers, birthdays and bank account numbers. Thieves from the dark web have become more active again this 2021 tax filing season. The IRS warns tax pros not to respond to the…
A COMBINED task force of IRS, state tax agencies and the tax industry is warning tax professionals of attempts to steal Electronic Filing Identification Numbers (EFINs) with new scam email that impersonates the IRS. The latest scheme that arrived just before the start of the tax season targets tax professionals who prepare your tax returns….
Opportunistic scammers are exploiting COVID to steal from you. IRS warns that dark web thieves are targeting tax preparers and taxpayers. These dirty criminals constantly mutate like the virus. These filthy scammers have been busy targeting economic stimulus payment. Here are some basic security guidance for individual taxpayers, business taxpayers and tax professionals. Protect personal…
IRS Commissioner Chuck Rettig described the combination of tax filing season, COVID, and work-from-home as hunting season for online thieves. Dark web scammers are the hunters and you are the game, unfortunately. Here are ways to protect yourself: • Install anti-virus software with a feature to stop malware. • Update your security software for both…
THE IRS expanded the Identity Protection PIN Opt-In Program to cover all taxpayers to include you. This Identity Protection PIN (IP PIN) is a six-digit code known only to you and the IRS. It helps prevent identity thieves from filing fraudulent tax returns (and get your refunds) using your personal information. Here are key factors…
Thieves’ new target: Mobile phones. People are vigilant in protecting their computers but not their cell phones; accordingly, scammers are feasting on mobile phones. The IRS FBI FTC have issued warnings about protecting phones especially when shopping. Make sure that your phones and tablets are just as secure as your computers. Federal and state agencies…
Feb. 1, 2021: Employers to mail out W-2 Forms to their employees; businesses to furnish 1099 Forms reporting non-employee compensation, bank interest, dividends, and distributions from a retirement plan. Feb. 1, 2021: Financial institutions to mail out Form 1099-B relating to sales of stock, bonds, or mutual funds through a brokerage account, Form 1099-S relating to real estate transactions; and Form…
HERE are simplified Questions & Answers about the freshly minted third round of stimulus payments under the new American Rescue Plan Act of March 2021. 1. How much is the third Economic Impact Payment? $1,400 for individuals, $2,800 for married couples plus $1,400 for each dependent. You will get a payment for all your dependents…
This is second of three articles about China technology companies. Bilibili (BILI) • Bilibili Inc. is a China-based company principally engaged in internet and other related businesses. • It’s the clear leader in online entertainment for the younger generation. • Mobile games are still the largest revenue contributor at ~50% of total revenue in 1Q20….
THE transition from Trump to Biden presents a tremendous opportunity to invest in China stocks. You may be familiar with Alibaba, Baidu, JD, and Ten Cent. Let me walk you through these China techs. I used to have few China stocks and even reduced my holdings when Trump started a trade war but since then…
THIS is the fourth of four articles on clean energy. Invesco Solar (TAN): • Invesco Solar ETF offers exposure to global technology and utilities stocks that can benefit from demand for solar as an alternative energy. • Investors benefit from the diversification and liquidity to U.S., European and Chinese companies in one product. • The…
THIS is the third of four articles on clean energy. NextEra Energy (NEE): • NextEra Energy is the world’s largest utility company. • The company is the world’s largest generator of wind and solar renewable power. • It offers the best of both worlds: a secure dividend and industry-leading renewable energy growth. • It enjoys service-territory…
THIS is the second of four articles on clean energy. Enphase Energy (ENPH): • Enphase was the best-performing renewable energy stock of 2019 as it gained 400%. • It designs, develops, manufactures, and sells solar home energy systems. • Each panel is equipped with a microinverters that work best if there is partial shade on the…
THE Biden presidency will boost energy energy stocks (solar, wind, fuel cell) especially if it extends the solar investment tax credit for residential and commercial property installations. ETF stands for Exchange Traded Funds that are similar to Mutual Funds but trade like ordinary stocks. This is the first of four articles on clean energy. ALPS…
Housing slowed down during the early part of the coronavirus pandemic. However, the combination of ultra-low interest rates and desire for more space to ride out the virus storm has brought about a surprisingly strong rebound in the market. New home sales exceeded 1 million units, up more than 40% the year before. The National…
Housing demand is outpacing supply. Unsold inventory is down to only three months of supply. California wildfires reduced lumber and helped push up housing prices by 11%. The beneficiaries: homebuilders. Here are my top housing stocks with specific ratings and buy recommendations. 1. Beazer Homes BZH Rating: • Good: Price/Sales ratio low, industry high rank…
HERE are 12 new California laws that take effect in 2021: • Potential COVID-19 Exposure Notification: Requires employers to promptly notify employees of potential coronavirus exposure. • Minimum Wage Increase: California’s minimum wage increases to $14 per hour for businesses employing 26 or more people and $13 per hour for businesses that have 25 or…
WHILE we advocated accelerating deductions and postponing income in prior year tax plans, we cannot apply these traditional tactics anymore. Both COVID and a change of the guards at the White House dictate that we alter these strategies this year. 1. Georgia on our minds – Control of Senate If Democrats win both Georgia Senate seats, they…
THE Internal Revenue Service has about 2.5 million of unopened paper-filed income tax returns. Total pieces of mail (including income tax returns) stands at about 5 million pieces. This number is even down compared with 12 million in June and 23 million pieces in March 2020. Amusing, but listen. IRS Commissioner Charles Rettig described the…
THE expected Blue Wave for Democrats did not happen. Republicans kept control of the Senate. This forms a split government with Democrats at the White House and Lower House while Republicans remain in control of the Senate. This limits President-elect Biden’s full-blown venture into tax and healthcare programs. Energy Regulation of the oil and gas…
THE projected Democrat Blue Wave did not materialize as Republicans kept control of the Senate. This limits what President-elect Joe Biden can do. It restrains his ability to significantly increase taxes or impact health care and climate legislation. Technology In a split Congress with a Republican Senate and Democratic house, technology stocks will perform well in a…
THE biggest electronics convention in the world has traditionally been confined to gadgets of the future but the 2020 Consumer Electronics Show in Las Vegas featured exciting new cars – cars of the future. Here are our favorite cars from that show. Mercedes-Benz Vision AVTR AVTR stands for Avatar – the movie – that merged…
There’s been a buzzword in cell phone speeds: 5G. Just what is meant by 5G? Our Asian Journal crew found out some valuable data at the latest Consumer Electronics Show in Las Vegas early this month. There are three different versions of 5G with varying degrees of speed: • Low-band 5G: About 20% faster than…
SOME of us feel anxiety over robots taking over our jobs. Yes, they can take over repetitive chores, but let’s view them as helpers to release us from boring repetitive tasks so we can devote more time to creative, administrative, and managerial tasks. Robots don’t do well in unruly environment (like yours, so you are…
1. REPORT all income IRS receives copies of 1099s and W-2s from your work, bank, buyers – people who pay you. Failing to report a W-2 wage statement or1099 subcontract income is flirting with IRS scrutiny. 2. Check your occupation Your occupation must be consistent with your income and expenses. It does not make sense…
1. DON’T go to your appointment unprepared. 2. Don’t be late for the appointment. 3. Don’t volunteer information. 4. Don’t bully IRS personnel. And if they bully you back? 5. Don’t fight the auditor. This is the agent’s business assignment, not a personal attack against you. 6. Don’t insist on indefensible positions. You’ll lose it…
MY Tax Tips are usually written from your perspective. Let’s make this interesting a bit – turn things around and discuss this from the IRS agent’s perspective. This is how they (IRS agents) are trained to interview taxpayers. • Establish rapport with the taxpayer (you). • Maintain a friendly and professional demeanor. • Recognize that…
