Andrew Samaniego | Tax Resolution Blog | CA

Tax Debt

Correcting Substitute Returns: Declare Your Financial Independence Today!

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Happy Fourth of July, everyone!

As we celebrate America’s independence with burgers, music, and fireworks by Lake Murray in San Diego, it’s hard not to think about the very reasons we kicked off this grand celebration back in 1776—taxation without representation.

Fast forward to today, and taxes are still a hot topic, especially if you’ve been neglecting them. Did you know that if you don’t file your tax returns, the IRS doesn’t just wait around? They take matters into their own hands by filing what’s known as a Substitute for Return (SFR) on your behalf. And trust me, it’s not as beneficial as it might sound.

The Problem with Substitute Returns

Imagine letting someone else decide what you’re going to eat at a barbecue without knowing what you like or what you’re allergic to. That’s roughly what happens with an SFR. The IRS prepares these based on the information they have, which is usually limited to your income. They don’t consider your eligible deductions, credits, or expenses, which means you could end up owing much more than if you had filed yourself.

Why You Need to Take Action

Just as our forefathers didn’t stand by to let taxes define their fate, you shouldn’t let the IRS dictate yours with a Substitute Return. Correcting an SFR is your financial declaration of independence. It allows you to replace the IRS’s version of your tax situation with one that accurately reflects your finances, often reducing the amount owed significantly, and sometimes even turning that balance into a refund.

How to Correct a Substitute Return

Step 1: Gather Your Documents Collect all relevant financial documentation from the year(s) in question—W-2s, 1099s, receipts, mortgage statements, etc. These are your ammo against the IRS’s assumptions.

Step 2: File Your Accurate Return Prepare the correct tax return for the years the IRS filed an SFR. This can either be done by using tax software that allows you to file back taxes or by working with a tax professional who can ensure that every potential deduction and credit is accounted for.

Step 3: Submit and Negotiate Once your accurate returns are prepared, submit them to the IRS. This will replace the SFRs, but the process doesn’t end there. If there are penalties and interest from the late filing, you may also need to negotiate with the IRS to reduce those penalties or set up a payment plan for any remaining debt.

Step 4: Stay Compliant Just as the U.S. continued to shape its own destiny after gaining independence, you must maintain your financial freedom by staying compliant with your tax filings moving forward.

Need Help Taking the Helm?

Navigating the murky waters of Substitute Returns can be complex and intimidating. If you’re unsure where to start or worried about going head-to-head with the IRS alone, I’m here to help. Check out my website where you can download a free e-book packed with guidance on how to handle Substitute Returns and reclaim control over your tax situation. Visit CrushIRSAnxiety.com and take the first step towards your financial independence.

This Fourth of July, while we celebrate our nation’s liberty, let’s also commit to securing our financial liberty. Don’t let Substitute Returns set the course of your fiscal future. Correct them, claim your rights, and ensure your tax situation is something that truly represents you. Here’s to a future where you hold the reins to your financial independence!

Happy Independence Day and here is a picture of my favorite firework show!

Andrew Samaniego, EA, CTRC, MSCTA

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com

Non-Filers: What You Need to Know Before the IRS Comes Knocking in San Diego

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Imagine you’re at the dog beach at Ocean Beach in San Diego, enjoying a sunny day with your beloved pup, Cooper.

He’s out there, happy as can be, chasing his favorite ball into the waves. Life’s good.

Suddenly, another dog swoops in, grabs the ball, and dashes off.

Chaos ensues as you find yourself in a mad dash, trying to retrieve what’s yours from an unexpected thief.

This little beach drama is a lot like dealing with the IRS if you haven’t filed your taxes in a while. Think of your assets, bank accounts and wages as Cooper’s ball—vital, valuable, and definitely worth protecting.

And just like the unexpected dog at the beach, the IRS can come out of nowhere, and trust me, they’re much less fun to deal with.

Why Non-Filers Need to Be Wary

The IRS Is Always on Patrol: Just like the many dogs at the beach, the IRS is always moving around, sniffing out non-filers. You might think you’re just another person in the crowd, but to the IRS, you’re an easy target if you’re not compliant.

The Consequences Can Fetch a High Price: Not filing your taxes can lead to a range of penalties, from financial fines to more severe legal consequences. The longer you wait, the more you risk.

It’s Not Just About Money: Your financial freedom and peace of mind are at stake. Just as losing his ball can ruin Cooper’s day, having the IRS on your tail can disrupt your life significantly.

How to Safeguard Yourself

Get Your Ball Labeled: In tax terms, this means getting your affairs in order. Start by filing any and all past due tax returns. This is the most straightforward way to prevent potential IRS complications. It’s like putting your name on Cooper’s ball—clearly marking your territory.

Understand the Rules of the Game: Know what triggers IRS actions and understand how to navigate the filings. Each unfiled tax year is a potential risk, increasing the likelihood of the IRS taking notice.

Seek Professional Help If Needed: Sometimes, getting your ball back requires some assistance. If you’re overwhelmed by the prospect of filing several years of back taxes or if you’re already in the IRS’s sights, consider reaching out to a tax professional. Enrolled Agents, CPAs, and tax attorneys can provide the expertise needed to tackle your tax issues head-on.

Stay Vigilant: Just as you’d keep an eye on Cooper’s ball at the beach, keep an eye on your tax situation. Stay informed about tax laws and maintain regular filings once you’re caught up.

Let’s ensure your tax ball is well-guarded and clearly marked, so you can enjoy stress-free days, both at the beach and beyond.

Andrew Samaniego, EA, CTRC, MSCTA

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com

Are You Missing Tax Returns? How to Regain IRS Compliance and Secure Your Financial Future

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Let’s talk about a timeline that might seem a bit daunting but is crucial for regaining your footing with the IRS: the last six years. Yes, you read that right. To be in good standing with the IRS, you need to have filed your tax returns for the most recent six years. Six years—think about how much can happen in that time. Six years ago, I was just a junior at the United States Naval Academy, visiting Hawaii for the first time to meet my future in-laws, and even running a football across states for the Annual Army-Navy Football Game.

Time flies, and unfortunately, so can our awareness of our tax responsibilities.

Why Six Years? Why Compliance Matters?

The IRS requires that you file the last six years of tax returns to be considered in compliance. This isn’t just a random number; it’s a considered measure to ensure that taxpayers are reasonably up-to-date without being overwhelmed by the need to go back indefinitely.

Being in compliance is crucial for several reasons:

  1. Negotiating with the IRS: Whether you’re hoping to set up a payment plan, negotiate an Offer in Compromise, or any other arrangement to manage your tax debts, being in compliance is the first step. The IRS won’t deal with you if you’re not up-to-date.
  2. Maintaining Agreements: Any agreement reached with the IRS, such as an installment plan or an Offer in Compromise, requires you to stay in compliance as a condition. Failing to file subsequent returns or make required payments can void these agreements, putting you back to square one.
  3. Avoiding Further Penalties: Staying compliant helps you avoid additional fines and penalties that can accrue from failing to file or pay taxes due.

How to Achieve and Maintain Compliance

  1. File All Due Returns: Start by filing any and all outstanding returns from the past six years. This step alone can lift a huge weight off your shoulders and prevent new penalties from accumulating.
  2. Adjust Withholdings and Payments: If you’re employed, ensure enough taxes are being withheld from your paycheck. If you’re self-employed or own a business, make your estimated tax payments quarterly and ensure all payroll taxes are deposited on time.
  3. Plan for the Future: Once you’re caught up, stay caught up. File all future tax returns on time, every time. This not only keeps you in good standing with the IRS but also gives you peace of mind.

Need Help Getting There?

Getting back into compliance can feel like navigating a minefield, but you don’t have to do it alone. If you’re feeling overwhelmed by the thought of digging up old documents and filing multiple years of returns, an experienced tax professional can guide you through the process.

To help you get started, I’ve put together a comprehensive e-book that breaks down everything you need to know about regaining and maintaining IRS compliance. You can download it for free on my website. It’s packed with actionable advice and insights to help you manage your tax situation effectively.

Visit crushirsanxiety.com to get your free e-book today and start your journey back to compliance. Remember, tackling this now can save you from bigger headaches later. Let’s get those returns filed and keep your financial future secure!

Andrew Samaniego, EA, CTRC

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com

Sailing Solo Through Tax Troubles? Crew Up with an Enrolled Agent for Smoother Seas!

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Ahoy there! As I was digging through some old photos for my sister—who’s currently lighting up Girls State in Sacramento with a tribute to our servicemen and women—I stumbled across a snapshot that took me straight back to my early Navy days.

There I was, a young officer, tasked with teaching plebes how to sail at the United States Naval Academy.

My primary job? Towing these newcomers out of being aground—quite literally pulling them out of trouble when they found themselves stuck.

This memory got me thinking. Isn’t this what I do now as an Enrolled Agent, but in the choppy waters of tax troubles instead of the literal seas? If you’ve been trying to navigate the stormy seas of IRS issues on your own, especially if you haven’t filed your taxes in over three years, it’s high time to think about getting some experienced crew on board.

Why Go It Alone When You Don’t Have To?

Navigating tax issues alone is like trying to sail a boat without any training—you might manage for a while, but eventually, you’ll hit rough waters or run aground.

This is where teaming up with an Enrolled Agent comes in.

Just like a seasoned sailing instructor, an Enrolled Agent is skilled in navigating the complex and often turbulent waters of tax law. They are federally-licensed experts who specialize not only in tax preparation but also in tax resolution, capable of representing taxpayers before the IRS.

How Can an Enrolled Agent Help You?

1. Understanding the Winds and Currents: First off, Enrolled Agents understand the lay of the land—or sea, in this case. They can help you comprehend the complexities of your tax situation, identify the risks, and chart the best course forward.

2. Plotting Your Course: If you’ve missed filing your taxes for several years, an Enrolled Agent can help you file those overdue returns and negotiate with the IRS to minimize your back taxes, penalties, and interest.

3. Avoiding Future Reefs: Beyond just clearing up your past dues, Enrolled Agents can provide you with strategic advice to ensure you stay compliant with the IRS moving forward, helping you avoid future financial shoals.

4. Rescue Operations: If you’re already facing collection actions from the IRS, like wage garnishments or bank levies, an Enrolled Agent acts like a rescue boat. They can negotiate on your behalf and may even set up payment plans or settlements that could significantly lighten your burden.

Ready to Crew Up?

Don’t wait until you’re taking on water—get the expert guidance you need to navigate these tricky waters smoothly. If you’re intrigued by how an Enrolled Agent can help you sail smoothly through your tax troubles, I’ve got just the thing.

Head over to my website and download your free e-book, which offers a detailed map to lowering or reducing your tax debts. This guide is packed with information and tactics that could save you from getting your finances aground.

Visit crushirsanxiety.com now to get your free e-book and start your journey toward calm waters. Here’s to fair winds and following seas in your tax dealings!

Andrew Samaniego EA

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com

Taming the “Cali-Claw”: How to Successfully Negotiate with the Franchise Tax Board

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Happy Monday, folks! I hope your weekend was as fantastic as mine. After a rejuvenating beach getaway and a heartwarming belated Father’s Day gift featuring a sumptuous seafood buffet at Tom Ham’s Lighthouse in San Diego, it’s back to reality—but with a good vibe! Enjoying those endless crab legs got me thinking about something a bit less appetizing, our local financial enforcer, the Franchise Tax Board (FTB), or as we jokingly call them in my family, the “Cali-claw”. Much like those tenacious crab claws, the FTB is known for its firm grip, especially on those who haven’t filed their taxes in a while.

Navigating the waters of tax negotiation can be tricky, especially if you’re dealing with back taxes and the FTB’s tight hold. But fear not! I’m here to share some seasoned advice on how to negotiate with the FTB and reduce your tax debts without getting pinched.

Understanding the Franchise Tax Board

First off, let’s understand our opponent. The FTB is responsible for administering personal and corporate income tax for the state of California. If you haven’t filed in over three years, it’s likely they’ve noticed, and they might start reaching out with notices that can lead to wage garnishments, bank levies, and other financial penalties.

Steps to Effective Negotiation with the FTB

1. Don’t Ignore Them: Ignoring the FTB can be like ignoring a crab’s pinch—it only gets worse. The first step in any negotiation is to engage. Respond to their notices and show that you’re proactive.

2. Know What You Owe: Before you can negotiate, you need to know exactly how much you owe. This involves filing any unfiled returns. Remember, you can’t negotiate if you don’t know the numbers.

3. Explore Your Options: The FTB offers several payment options and settlement agreements, depending on your financial situation. These include installment agreements, offers in compromise, or even penalty abatement in some cases.

4. Set Up a Payment Plan: If you owe money and can’t pay in full, setting up a payment plan is a viable option. This allows you to pay your debt over time and can prevent further penalties.

5. Consider Professional Help: Negotiating with the FTB is no walk in the park. Hiring a tax professional, like an Enrolled Agent, can provide you with the expertise needed to handle complex tax issues effectively.

Seal the Deal and Celebrate

Just like cracking open a crab claw and getting to the good stuff inside, successfully negotiating with the FTB can be incredibly rewarding. It can lead to reduced penalties, manageable payment plans, and ultimately, financial relief.

Get Your Free Guide

Interested in diving deeper into how you can fend off the “Cali-claw”? Head over to my website and download my free e-book. This guide is packed with detailed strategies and tips to help you navigate your negotiations with the FTB and reclaim your financial freedom.

Don’t let the FTB’s grip tighten around your finances. With the right strategies and some expert guidance, you can negotiate effectively and turn a stressful situation into a manageable one. Visit crushirsanxiety.com today and start your journey toward financial recovery. Let’s leave those claws at the buffet and keep our bank accounts intact!

Andrew Samaniego EA

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com

Rebuilding Your Financial Life After Settling Tax Debts: A Fresh Start

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Hello from sunny San Diego! I’ve just returned from a fantastic day at a beach house in Newport Beach, celebrating my cousin’s 21st birthday. The whole family, flying in from Oregon, gathered to enjoy the sun, sand, and surf. It was a special day, particularly watching my son, Kainalu—whose name means “Ocean that bellows”—experience his first dip in the ocean. Moments like these, basking in the luxury of an oceanfront property, remind us of the lifestyle possibilities that await once we get past financial hurdles like tax debts.

If you’re coming off the relief of settling long-standing tax debts, you might be wondering, “What now? How do I rebuild my financial life?” You’ve navigated through rough waters, but the journey toward financial freedom isn’t over yet. Here’s how you can start anew and possibly work your way toward your own version of a beach house lifestyle.

Step 1: Assess Your Current Financial Health

Just as you would survey the beach before diving in, take a thorough inventory of your financial situation. Understand what resources you have, what debts remain, and what your monthly income and expenses look like. This clear financial snapshot is your baseline for rebuilding.

Step 2: Establish a Budget

With your financial landscape clear, the next step is budgeting. This isn’t about restricting yourself; it’s about creating a framework that allows you to slowly rebuild your savings while managing your expenses. Think of it as building a sandcastle—one careful scoop at a time, until it stands firm.

Step 3: Start Saving

Now that you’re no longer funneling large payments toward back taxes, redirect some of that money into savings. Even a small monthly amount can grow over time. This is your safety net, and it’s also the seed for future investments, be they in stocks, retirement funds, or even real estate like a beach house.

Step 4: Check Your Credit

Settling tax debts can impact your credit score, so it’s important to know where you stand. Obtain a credit report, review it for accuracy, and identify areas for improvement. Improving your credit score is crucial for future financial flexibility—whether that’s refinancing a home loan or buying a new car.

Step 5: Plan for Future Taxes

Now that you’ve cleared past hurdles, ensure you stay on track with current and future taxes. Set aside money for upcoming tax payments, and consider consulting with a tax professional to avoid falling behind again. Regular check-ins with an Enrolled Agent can keep you in the clear.

Step 6: Educate Yourself

Knowledge is power, especially when it comes to finances. Consider reading books, attending workshops, or even following financial blogs. The more you know, the better equipped you’ll be to make smart financial decisions.

Learn More and Get Your Free E-Book

Interested in deeper insights on rebuilding your financial life post-tax debt? Visit my website and download the free e-book, “How to Crush Your IRS Anxiety.” It’s packed with strategies not only for overcoming tax debts but also for maintaining and enhancing your financial health thereafter.

Imagine a future where financial worries are a distant memory, and days at the beach are just another Friday. It’s possible, and it starts with taking the right steps today. Visit crushirsanxiety.com to get your free guide and start your journey toward financial recovery and beyond. Let’s build that dream, one financial brick at a time!

Andrew Samaniego EA

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com