Gathering your tax documents? Before you file your tax return, read these tax tips from our Miami IRS tax lawyer that will make your tax season simple.
January is the time when most people begin to gather their tax documents and prepare, at least mentally, for the annual task of filing their tax returns with the IRS. Our managing partner and Miami IRS tax lawyer, Rolando Casais, Jr., is a former IRS agent and leads our tax law team at Casais & Prias. He is a valuable resource for all IRS matters because he knows the system from the inside. Here are a few of his tips to keep in mind for your 2022 tax return.
#1 Review Your Rights
As taxpayers, we have certain rights under the law when it comes to taxes. The tenants of the Taxpayer Bill of Rights include:
- The right to be informed about what is required of you.
- The right to quality service from the IRS.
- The right to pay no more than the correct tax amount.
- The right to challenge the position of the IRS.
- The right to appeal an IRS decision.
- The right to finality in the amount of time you have to challenge an IRS decision.
- The right to privacy in the case of an IRS inquiry.
- The right to confidentiality in your tax information.
- The right to a fair and just tax system.
#2 Beware Of Tax Season Scams
Tax season is a prime time for scammers to try to fool unsuspecting taxpayers into revealing their personal information or sending them money. It is important that you know the IRS will never:
- Call a taxpayer and demand payment using a payment method such as a gift card, debit card, or wire transfer. The IRS typically mails out bills to taxpayers who owe taxes.
- Threaten the taxpayer with arrest by law enforcement.
- Demand that the taxpayer pays a certain amount without allowing questions or appeal of the amount allegedly owed.
- Call a taxpayer about a tax refund.
If you receive a suspicious communication from “the IRS,” our Miami IRS tax lawyer recommends that you report it so that another taxpayer will not fall victim to their attempts. Follow these steps to report suspected scam calls:
- Make a note of the phone number, then hang up the phone.
- Report the call by calling the Treasury Inspector General for Tax Administration at 800-366-4484, or fill out an IRS Impersonation Scam Reporting form on their website. Click on the IRS Scams and Fraud section.
- Email the phone number to email@example.com; include “IRS Phone Scam” in the subject line.
#4 Review Current Rules On Credits And Deductions
These rules change year to year, so you need to know the correct eligibility amounts now that the American Rescue Plan Act programs are ending. Here are a few tax credits and deductions that you should know about:
- Child Tax Credit
- Child and Dependent Care Credit
- Earned Income Tax Credit
- Premium Tax Credit
- Clean Energy Vehicle Credit
- Donations To Charity
#5 Know How To Report Self-Employment Income
Today’s growing side gig economy presents some challenges in tax reporting. Any money you have earned in a side gig (as a delivery app driver, for example) must be reported as income. You may be able to deduct some expenses, depending on the work. Contact a tax professional for specifics.
More good news is that the 1099-K form for using digital payment companies like PayPal, Venmo, and CashApp has been held back until tax year 2023. So, for 2022 earnings, you are not required to report payments of $600 or more received via digital payment companies. It is a good idea to look at your digital accounts now to make sure your personal accounts are not set up as business accounts.
Still Have Questions? We Can Help
Our Miami IRS tax lawyer can answer your tax questions and assist you if you have been notified of an IRS audit. We will put our legal experience to work for you so that your rights are protected. Contact us today for more information.