Andrew Samaniego | Tax Resolution Blog | CA

Small Business

The Hidden Cost of Tax Season Ads (And Why You Should Act Now)

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As I sit here unpacking from our Hawaii trip, watching our son Kainalu reach his 9-month milestone (cue the adorable photoshoot!)

and helping Cooper readjust to San Diego life after being spoiled by grandma and grandpa, I can’t help but think about the incoming wave of tax season marketing that’s about to hit everyone’s feeds.

You know what I’m talking about – those endless TurboTax commercials, H&R Block pop-ups, and random “tax experts” promising instant refunds. But here’s what those flashy ads aren’t telling you…

The Real Cost of DIY Tax Software

While TurboTax might seem cheaper upfront, here’s what I discovered after reviewing hundreds of self-filed returns:

  • 72% of DIY filers missed key deductions
  • The average missed refund amount? $2,300
  • Most people spent 5-7 hours struggling with software
  • Many had errors that could trigger IRS notices

Why An Enrolled Agent Makes a Difference

As an Enrolled Agent (EA), I’m different from your typical tax preparer. Here’s why:

I’m licensed by the IRS to represent you (only EAs, CPAs, and attorneys have this privilege)
I specialize in personal tax returns (unlike CPAs who focus on corporate)
I work with you year-round (not just during tax season)
I actually answer my phone (try getting TurboTax on the line in March!)

Last year, a client switched to me after using TurboTax for 5 years. During our review, I discovered:

  • Missed home office deductions
  • Unclaimed business expenses from their side gig
  • Educational credits they qualified for
  • Retirement contribution opportunities

Result? An extra $3,400 in their refund.

Why Act Now?

Here’s the thing – I’m only accepting 20 more clients this tax season. Why? Because unlike the big tax chains, I believe in:

  • Personal attention
  • Thorough reviews
  • Strategic tax planning
  • Actually knowing my clients’ names

Think about it: Would you rather:
A) Spend hours fighting with software, hoping you didn’t miss anything
B) Hand everything to an expert who knows what they’re doing and can maximize your refund

The choice seems pretty clear to me.

What’s Next?

If you’re ready to:

  • Stop stressing about taxes
  • Maximize your refund
  • Work with someone who actually cares
  • Get year-round tax support

Email me at info@andrewsamaniego.com

I’ll send you:

  • Pricing details
  • Required documents checklist
  • Online scheduling link
  • Answer any questions you have

Don’t wait until April when everyone’s panicking. Let’s get your taxes sorted now so you can focus on what matters – like taking vacation photos that don’t need a vacation to recover from (though our Hawaii trip was worth every jet-lagged moment!).

Ready to make tax season stress-free?
Email info@andrewsamaniego.com today.

P.S. My current clients know – spots fill up fast. Don’t wait until the last minute!

Your Business Could Face $182,500 in Fines Next Year (Here’s What You Need to Know)

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Aloha from Kailua Beach,

Yesterday, while celebrating my wife Kanoe’s 29th birthday, she turned to me and said, “It’s scary… this is my last year of youth.” Little did she know, I was about to read something even scarier than aging – the new Corporate Transparency Act (CTA).

Speaking of things that keep business owners up at night…

There’s a massive change coming that could cost you $500 PER DAY if you ignore it. Yes, you read that right. While I’ve been sitting here reading parenting books for our little Kainalu’s toddler years, this regulatory bombshell has been ticking away.

The Government’s New Business “Background Check”

The feds have decided they want to know who owns what. It’s called the Corporate Transparency Act (CTA) and Beneficial Ownership Information (BOI) reporting. Think of it as a TSA checkpoint for your business entity.

Here’s the Terrifying Part:

If you own an LLC, Corporation, or other business entity and don’t file this report, you’re looking at:
• $500 daily fines (that’s $182,500 per year!)
• Additional $10,000 penalties
• Potential 2-year prison sentence

Let that sink in. Two years in prison for not filing a form.

My Naval Officer training taught me one crucial lesson: Never present a problem without a solution. So here are your options:

OPTION 1: The “DIY Adventure”
Try navigating FinCEN.gov/boi yourself. Warning: It’s about as user-friendly as programming a VCR in 1985. Sure, it’s free – if you don’t count the value of your time and sanity.

OPTION 2: The “Sleep Well at Night” Solution
While in Orlando, I discovered FileForm.com – they’ve turned this compliance nightmare into a “click, submit, done” process. Think TurboTax, but for BOI reporting in under 10 mins.

Real Talk: Some folks are waiting to see if courts strike this down. But here’s what I tell my clients: Would you rather:
A) Pay a small fee now for peace of mind
B) Risk $182,500 in fines and prison time

The choice seems pretty clear to me.

Here’s What You Need to Do RIGHT NOW:

If you have a business entity(LLC,S-Corp, ect.),

1.Head over to FileForms.

2.Complete their 10 min or under program.

3.Go have a Mai Tai.

Remember: This isn’t like other tax deadlines that come with simple late fees. This is $500 EVERY DAY you’re not compliant.

Don’t let this be the thing that ruins your New Year.

Mahalo,
Andrew “Compliant” Samaniego, EA

P.S. Already seeing ads for “BOI filing services”? Be careful. I’ve vetted the solution I’m recommending. Email me for the safe option.

Gobble Up Your Tax Problems Before the Holidays Bite You

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Tax Turkey Stuffers,

I hope everyone had a Thanksgiving filled with laughter, gratitude, and maybe a second helping of pie. But let’s be real—the holidays can bring out a bit of stress, too, especially if you’re carrying the weight of unresolved tax problems.

Take Suzy and Rob, for example. A military family, Suzy decided to start a small business this year to help make ends meet. Friends told her, “Start an LLC! It’ll save you on taxes!” Then came the advice to form an S-Corporation for “even bigger savings.”

But here’s where it gets messy.

They hired some “guru accountant” from Fiverr who promised to do it all for cheap. Guess what? The LLC paperwork? Never filed. The S-Corp? Nada. The accountant they hired? Vanished like a turkey leg on Thanksgiving.

Now, they’re sitting in a pile of stress and missed savings. The dream of financial freedom? Stuffed like last week’s turkey.

Let me tell you something: tax planning is NOT something to leave to amateurs or “gurus.”

If you’re in a similar boat—or even just worried about what’s around the corner—it’s time to take action.

This holiday season, give yourself the gift of clarity. Schedule a free consult; It’s packed with strategies to fix tax problems and protect yourself moving forward.

Don’t wait until the IRS turns your holiday cheer into a tax nightmare.

Until Next Time,

Andrew “Tax Stuffer” Samaniego, EA, CTRC

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com

From medieval tax dungeons to today’s IRS challenges—will you survive the fiscal onslaught or succumb like the taxed peasants of old?

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Tax Knights and Squires,

Journey back with me to a time when kings and queens reigned, and the clinking of coins often meant the difference between prosperity and peril. Recently, my family and I stepped back into these storied times at the San Diego Renaissance Festival.

Amidst the jousting knights and meandering minstrels, my mind turned to a question as old as the realm itself: How did rulers collect their due?

The Medieval Method: Fealty and Farming

In the medieval era, taxation wasn’t just a matter of money—it was a matter of survival. Kings and lords would levy taxes on the lands they controlled. The common folk, our ancestors in trade and toil, paid their taxes in myriad ways:

  • Tithe: A mandatory offering of one-tenth of one’s annual earnings or produce, often given to the local church, but sometimes taken as tax.
  • Tallage: Paid by peasants to their lord, a form of tax that could be demanded at will for special expenses when the king or lord decreed.
  • Scutage: Often called “shield money,” this was paid by those who preferred to provide money rather than military service when summoned by the king.

Transition to Today: The IRS and Income

Fast forward to our modern realm, where the IRS reigns over the land of tax collection. Instead of tithes and tallages, we deal with income taxes, payroll taxes, and corporate taxes, all neatly calculated and claimed by electronic ledgers rather than sword-wielding tax collectors.

Your Modern Tax Quest

Just as knights of old would consult oracles and sages, today’s taxpayers are wise to seek knowledge to navigate the labyrinth of modern tax laws. Here at Andrew Samaniego Tax Planning & Resolution, we consider ourselves your allies in this noble quest.

Equip Thyself:

In closing, whether at a festival celebrating the old ways or sitting at our computers facing the digital sprawl of IRS forms, the spirit of the quest remains the same—knowledge is power, and preparation is key.

Let us arm you for battle against the modern-day fiscal foes, ensuring your treasure remains where it belongs—in your coffers.

Until Next Time,

Andrew “Tax Walker Slayer” Samaniego, EA, CTRC

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com

Defending Your Schedule C Against ‘Hobby Loss’ Challenges

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Happy Monday, Debt Deck Swabbers! Today, let’s dive into a topic as tricky as a deflated air mattress on a cold camping night—navigating the murky waters of IRS ‘hobby loss’ challenges on your Schedule C. But first, a quick tale from the great outdoors…

Last weekend, Kanoe and I set out for what promised to be a refreshing camping trip in the mountains of eastern San Diego. We were all set for a night under the stars—burgers, campfire, smores, and the sounds of nature all around. But fate had other plans. Just as we settled in, we discovered our air mattress had deflated, thanks to an unlucky puncture. Instead of enduring a miserable night, we chose to pack up and head home, ready to try again another day.

This brings us to our main discussion: what do you do when the IRS challenges your business expenses on Schedule C as not being legitimate business expenses but rather, hobby expenses? Like our camping mishap, you can either suffer through it, hoping it goes away, or take proactive steps to ensure you’re on solid ground.

What is a ‘Hobby Loss’?

The IRS scrutinizes business claims, especially on Schedule C, to determine if they’re genuinely aimed at making a profit or are just hobbies. Under the so-called ‘hobby loss’ rule, expenses from activities not engaged in for profit cannot be used to offset other income. This can be a major issue for small businesses and freelancers whose business intentions are questioned by the IRS.

How to Defend Your Schedule C

1. Prove Your Profit Motive: The key to defending against a hobby loss challenge is to demonstrate a clear intent to make a profit. This includes maintaining accurate books, having a business plan, and adjusting strategies to increase profitability.

2. Documentation is King: Just as you would map out a camping trip, map out your business activities. Keep meticulous records of all expenses, receipts, and logs of business activities. This documentation can be crucial in proving the legitimacy of your expenses.

3. Separate Business and Pleasure: Ensure that your business finances are completely separate from personal expenses. This clear separation helps reinforce the legitimacy of your business.

4. Educate Yourself on IRS Expectations: Understanding what the IRS looks for in distinguishing a hobby from a business can give you an upper hand. Typically, if an activity makes a profit in at least three of the last five years, the IRS presumes it’s carried out for profit.

5. Seek Professional Help: Navigating IRS regulations and defending your business can be complex. Partnering with an Enrolled Agent who specializes in tax resolution can provide you with the expertise needed to effectively defend your Schedule C.

Ready to Take Action?

Don’t let IRS challenges deflate your business ambitions. If you find yourself facing a ‘hobby loss’ challenge or need help ensuring your business is IRS-proof, it’s time to act. Visit AndrewSamaniego.com to schedule an appointment with a firm that specializes in tax resolution. Just like deciding to pack up and head home instead of enduring a bad situation, choosing to seek professional help can be the fresh start your business needs.

Remember, sometimes the best way to deal with a setback is to regroup and come back stronger. Let’s get your business on firm footing and keep it moving forward, no matter what challenges you face.

Andrew Samaniego, EA, CTRC, MSCTA

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com

Why Ignoring Your Bookkeeping Could Be the Worst Financial Mistake of Your Life

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You’ve got a business to run, a life to live, and maybe even a mountain of debt hanging over your head. And what’s sitting on your desk? A mountain of receipts and a pile of unopened letters from the IRS.

Now, I know what you’re thinking. “I’ll deal with it later.” But let me tell you something—later isn’t good enough. Ignoring your bookkeeping isn’t just lazy; it’s a financial disaster waiting to happen.

You see, without proper bookkeeping, you’re flying blind. You don’t know where your money is coming from, where it’s going, or worse—how much you owe the IRS. And if you think the IRS is just going to forget about you, think again. They have a long memory, and they aren’t shy about coming after what they’re owed.

But there’s a silver lining here—a way out if you’re willing to take action.

First things first: Gather every financial document you can find. I don’t care if it’s crumpled in a shoebox or buried under old magazines. You need to know what you’re dealing with.

Then, use some technology to your advantage. Get yourself some good accounting software—QuickBooks, Xero, whatever works for you. These tools can make a world of difference in keeping your finances organized and, more importantly, in keeping you sane.

Now, here’s where it gets interesting. Ever heard of the Cohan Rule? If not, let me introduce you to your new best friend. Named after George M. Cohan, a guy who knew how to play the system, the Cohan Rule lets you estimate your expenses even if you don’t have all the receipts. Yep, you read that right.

But hold on—don’t start celebrating just yet. The Cohan Rule isn’t a free pass to fudge your numbers. You need a reasonable basis for your estimates. That means showing some form of evidence, like bank statements or credit card records, to back up your claims. The IRS might let you slide with a reasonable estimate, but they’re not stupid.

Once you’ve cleaned up your books and know exactly what you owe, set up a system to keep it that way. Dedicate a regular time each week to update your records. Make it a habit, just like brushing your teeth. You wouldn’t go a week without brushing your teeth, right? So why would you go a week without keeping your books in order?

And if this all sounds like too much, or if you’re not sure where to start, get some help. A bookkeeper or an Enrolled Agent can make all the difference. They can ensure your records are accurate, help you stay on top of things, and keep the IRS off your back.

Look, catching up on bookkeeping isn’t glamorous. It’s not fun. But it’s one of the best things you can do for your business and your peace of mind. And trust me, when the IRS comes knocking, you’ll be glad you did.

So roll up your sleeves, dive into those records, and take control of your financial future. Because ignoring your bookkeeping? That’s the worst mistake you could make.

Now get to it! Your future self will thank you.

Want to dive deeper into this topic and get some practical tips on how to catch up on your bookkeeping? Check out my latest YouTube video where I break it all down step by step. Click the link and let’s get those books in order together!

Andrew Samaniego, EA, CTRC, MSCTA

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com