Andrew Samaniego | Tax Resolution Blog | CA

Tax Tips

The True Cost of DIY Taxes: A Story of Two Rental Property Owners

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I had two interesting conversations that perfectly illustrate why “saving money” on tax preparation often costs more in the long run.

Meet Tom and Sarah (names changed for privacy). 

Both own rental properties, both are successful professionals, and both were convinced they could handle their own taxes.

Tom’s Story: The DIY Approach

Tom came to me after doing his own taxes for three years. 

“My return isn’t that complicated,” he had always thought. 

He’d spend a weekend each February gathering receipts, logging into TurboTax, and plugging in numbers. 

He felt good about saving on tax preparation fees.

That is, until he received an IRS notice.

During our review, we discovered he had been depreciating his rental property incorrectly and missing several key deductions. 

Those “simple” returns had cost him over $15,000 in overpaid taxes over three years. 

The worst part? 

He had to file amended returns and deal with IRS correspondence on his own since no professional had prepared the original returns.

Sarah’s Story: The Professional Advantage

Sarah, on the other hand, came to me before she purchased her first rental property. 

Initially, she too wondered why she needed professional help. 

“I’ll have to pay so much in taxes anyway,” she said during our first meeting.

But here’s where her story takes a different turn.

Through our tax planning sessions, we structured her rental property ownership optimally from the start. 
We discussed timing for improvements, set up proper recordkeeping, and implemented a tax strategy that worked for her entire financial picture.

The result? 

In her first year as a landlord, Sarah paid $8,000 less in taxes than she expected. 

Not because of any magic, but because we planned ahead and used every legal deduction available.

The Real Difference

The difference between Tom and Sarah isn’t intelligence or business acumen — they’re both smart, successful people. 

The difference is that Sarah had a professional in her corner who lives and breathes tax code all year long.

You see, tax preparation isn’t just about entering numbers into software. It’s about understanding the story those numbers tell and knowing how to make that story work in your favor.

When you work with a tax professional, you’re not just getting someone to fill out forms. You’re getting a partner who:

  • Thinks about your taxes when you’re busy running your business
  • Researches strategies months before tax season
  • Creates a barrier between you and the IRS
  • Helps you make financial decisions that impact your tax future

A Conversation Worth Having

Remember that IRS notice that brought Tom to my office? He told me something that stuck with me: “I thought I was saving money, but I was actually paying thousands extra in taxes every year without knowing it.”

This isn’t about whether you’re capable of doing your own taxes. It’s about understanding that tax professionals don’t just prepare returns — we build strategies that save you money year after year.

The Question That Matters

So instead of asking “Why should I pay someone to do my taxes?” try asking “How much am I losing by not working with a tax professional?”

If Tom and Sarah’s stories resonate with you, let’s talk. Whether you’re a current rental property owner, thinking about buying your first investment property, or running a small business, I’d love to help you write your own success story.

Ready to Stop Leaving Money on the Table?

Visit AndrewSamaniego.com to learn more about how we can work together, or schedule a consultation. Let’s make sure your tax story has a happy ending.

Until Next time,

Andrew “Your new Tax Pro” Samaniego, EA

Andrew Samaniego Tax Planning & Resolution

(619) 268–1084 | AndrewSamaniego.com

P.S. The cost of professional tax preparation is an investment in your financial future. And like Tom learned, doing it yourself can be the most expensive option of all.

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!

Why Your Tax Problems Shouldn’t Steal Your Holiday Joy

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Aloha from Oahu! 🌺

As I write this, I’m watching my son Kainalu play with his grandparents in their kitchen that overlooks the ocean, and it got me thinking about something important I want to share with you.

Our journey here started at 4:45 AM yesterday (yes, that’s pre-coffee time!) when our amazing friend Maggie showed up with her 4-runner to help us wrangle our luggage and a very excited baby to the airport. Looking back, it could have been a disaster…

Picture this:

  • 6 AM airport arrival
  • TSA line snaking like an old Nokia phone game
  • 2-hour flight delay
  • 5.5 hours across the Pacific with a baby
  • Enough luggage to make a sherpa nervous

But you know what? We made it. Not just made it – we actually enjoyed the journey. Why? Because we had:

The right tools (CLEAR membership = skipping that terrifying TSA line)
The right help (Thank you, Maggie!)
A plan in place
And that’s when it hit me – this is exactly what I see with clients who come to me panicked about their taxes right after the holidays.

Every year, I meet wonderful people who:

  • Spent their holidays stressed about tax problems
  • Missed precious moments with family worrying about the IRS
  • Put off making memories because of financial anxiety
  • Waited until April to start thinking about tax preparation

Here’s the truth: Just like our holiday travel, tax season doesn’t have to be chaotic. You don’t have to miss out on building gingerbread houses with your keiki because you’re sorting through shoebox receipts in January.

Let me share a quick story about one of my clients from last year. She was a small business owner who usually spent her entire holiday season stressed about taxes. Last year, she decided to do things differently. We put a plan in place before the holidays, and you know what she told me in January?

“This was the first Christmas in five years where I was actually present for my family.”

That’s what this is all about.

As I sit here in Oahu, watching three generations of my family together, I’m reminded why I do what I do. It’s not just about numbers – it’s about giving people their peace of mind back. It’s about making sure you can focus on what really matters during the holidays.

Here’s My Holiday Gift to You:

I’m putting together a special “2024 Tax Referral” for my email subscribers. It includes:

  • Getting $100 off your annual tax prep fees per client refereered
  • 4 clients referred (free prep)

How to Get It:

Let your friends/family know I can solve their tax woes.
If they sign up with me and mention you ill credit you $100

Easy.

Remember: Just like our airport adventure, sometimes you need the right tools and the right people to make the journey easier.

Bonus Tip: Like how CLEAR saved us from that TSA line, getting your tax prep started early can save you from the April rush. Early birds get the best service (and often find more deductions!)

From my ohana to yours, Mele Kalikimaka! 🎄

P.S. What’s your holiday travel story? Share it in the comments – I’d love to hear how you manage the chaos of holiday logistics!

Until Next Time,

Andrew “Shaka” Samaniego, EA, CTRC

Andrew Samaniego Tax Planning & Resolution

(619) 268-1084  |  AndrewSamaniego.com

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

Choosing the Right Accountant: Lessons from Babysitter Hunting

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Ever searched for the perfect babysitter?

It’s oddly similar to finding the right accountant to handle your tax problems or plan your financial future.

Last night, as we went through this drill for our little one, it dawned on me how crucial and meticulous this process is—much like picking the person who’ll manage your taxes.

Finding the Fit: Accountants vs. Babysitters

1. Research: Just like scouring profiles for a trustworthy babysitter, you start with a list of potential accountants. You’ll want to check their qualifications, reviews, and areas of specialty. Are they adept at handling tax debts or proactive in tax planning? Their professional background can tell you a lot.

2. Interviews: You wouldn’t leave your child with a sitter without meeting them first, right? The same goes for your accountant. An initial consultation can reveal a lot about their approach, reliability, and the chemistry you might (or might not) have with them.

3. Environment: Just as you’d inspect a sitter’s house, understanding the operational environment of your potential tax advisor is key. Are they solo practitioners, or part of a larger firm? How they manage their practice can impact the level of service and attention they provide.

4. Cost: Costs matter. Whether it’s per hour or a flat fee for services, knowing what you’re getting into financially is as crucial as knowing what a babysitter charges for an evening.

Why the Right Choice Matters

Choosing the right accountant is critical. They’re not just filing your returns; they’re safeguarding your financial health, planning your future, and ensuring you stay on the right side of the law.

So, think about what you want in an accountant. Do you need someone just to crunch numbers, or someone who can strategize and navigate complex tax waters?

Ready to Find Your Accounting Match?

Don’t wait until the IRS is knocking or it’s time to file; get ahead of the game. Visit CrushIRSAnxiety.com to download our book for more insights, or start a comprehensive consult for tailored tax planning today. Just like finding that perfect babysitter, the right accountant can make all the difference in maintaining your financial peace of mind.

Remember, your taxes might not be as adorable as your kids, but they definitely need as much, if not more, careful attention!

Until next time,

Andrew “Tax Sitter” Samaniego, EA, CTRC

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