Why Pay and Prepare Your Taxes

Have a question ? Contact@LAPremierTax.com

Selling or Sold Your Home – Consider These

The IRS says homeowners should think about these things when selling a home:

Ownership and Use
To claim the exclusion, the taxpayer must meet ownership and use tests. During a five-year period ending on the date of the sale, the homeowner must have owned the home and lived in it as their main home for at least two years.

Gains
Taxpayers who sell their main home and have a gain from the sale may be able to exclude up to $250,000 of that gain from their income. Taxpayers who file a joint return with their spouse may be able to exclude up to $500,000. Homeowners excluding all the gain do not need to report the sale on their tax return unless a Form 1099-S was issued.

Losses
Some taxpayers experience a loss when their main home sells for less than what they paid for it. This loss is not deductible.

Multiple Homes
Taxpayers who own more than one home can only exclude the gain on the sale of their main home. They must pay taxes on the gain from selling any other home.

Reported Sale
Taxpayers who don’t qualify to exclude all of the taxable gain from their income must report the gain from the sale of their home when they file their tax return. Anyone who chooses not to claim the exclusion must report the taxable gain on their tax return. Taxpayers who receive Form 1099-S, Proceeds from Real Estate Transactions must report the sale on their tax return even if they have no taxable gain.

Mortgage Debt
Generally, taxpayers must report forgiven or canceled debt as income on their tax return. This includes people who had a mortgage workout, foreclosure, or other canceled mortgage debt on their home. Taxpayers who had debt discharged, in whole or in part, on a qualified principal residence can’t exclude it from income unless it was discharged before January 1, 2026, or a written agreement for the debt forgiveness was in place before January 1, 2026.

Possible Exceptions
There are exceptions to these rules for some individuals, including persons with a disability, certain members of the military, intelligence community and Peace Corps workers.

Worksheets
Worksheets included in Publication 523, Selling Your Home can help taxpayers figure the adjusted basis of the home sold, the gain or loss on the sale, and the excluded gain on the sale.

Share this tip on social media — #IRSTaxTip: Important tax reminders for people selling a home https://go.usa.gov/xu6Nb

STIMULUS PAYMENTS – IRS Letters 6475 | 6331C or 5071 | 4883C or 6330C

The Economic Impact Payments (EIP) commonly refer to as Stimulus Payment is about to be phase out this tax season. If you have not received your stimulus payments, now is the time.

The IRS have been sending out letters to taxpayers who they believe did not get their stimulus money or may have gotten the first payment and never did get the second or third payment. The IRS is asking taxpayer to file a tax return.

Even if you think you did not get your stimulus payments, the IRS encourage you a file a tax return for 2020 and 2021 and claim the Recovery Rebate Credit (RRC).

Because of the many scams out there, the IRS are requesting taxpayers who filed for stimulus payments to verify that they are the one that filed the return. [IRS Letter 5071C or 6331C]

We at PREMIER Financial Tax & Accounting Services dba FRIENDLY Tax Services can help get you your STIMULUS MONEY. Contact us

IRS LETTER 6475 – The letter contains the total amount of the third Economic Impact Payment and any plus-up payments received. The letter should provide information to calculate the correct 2021 Recovery Rebate Credit (RRC) amount when you file your tax return for 2021. FAILURE TO USE THE CORRECT PAYMENT AMOUNT CREATE DELAYS IN PROCESSING YOUR REFUND.

IRS LETTER 5071C or 6331C – This letter simply says that you will need to verify your identity.

What You Need To Do Immediately

Go to our secure Identity Verification Service to verify your identity. It’s quick, secure, and available 24 hours a day.

  • You must register to the website before verifying your identity. Be sure to check the website and prepare all the documents needed to complete the registration.
  • Have a copy of the 5071C or 6331C letter you received and a copy of the tax return for the tax year shown in the letter.
  • If you did not file an income tax return, you can indicate that on the website.

If You Want to Call the IRS

If you prefer to talk to our representative, call the toll-free IRS Identity Verification telephone number in the 5071C or 6331C letter.

Note: Although the letters request a response within 30 days, the IRS will continue to work with you regardless of the amount of days that have passed.

Have ALL of the following available when you call:

  • The 5071C or 6331C letter;
  • The tax return referenced in the letter (the Form 1040 series return). Note: A Form W-2, Form 1099 is not a tax return;
  • A prior year’s income tax return, other than the year in the letter, if you filed one. Note: A Form W-2, Form 1099 is not a tax return; and
  • Supporting documents that you filed with each year’s tax return. (Form W-2, Form 1099, Schedule C or F, etc.).

Note: Authorized third parties may assist taxpayers, but the taxpayer must call us together and must participate on the call.

LETTER 4883C or 6330C – Call us so we can verify your identity and process your federal income tax return.

What You Need To Do Immediately

CALL US at the phone number in your letter with the information listed below. When you call, we’ll ask questions to verify your identity.

Note: Although the letters request a response within 30 days, the IRS will continue to work with you regardless of the amount of days that have passed.

Have ALL of the following available when you call:

  • The 4883C or 6330C letter;
  • The income tax return referenced in the letter (the Form 1040 series return). Note: A Form W-2 or Form 1099 is not a tax return;
  • A prior year income tax return, other than the year in the letter, if you filed one. Note: A Form W-2 or Form 1099 is not a tax return; and
  • Supporting documents that you filed with each year’s income tax return (Form W-2 or Form 1099, Schedules C or F, etc.).

NOTE: Authorized third parties may assist taxpayers, but the taxpayer must call us together and must participate on the call.

The toll-free IRS Identity Verification number is for identity verification only. No other tax-related information, including refund status, is available.

What Is a Tax Accountant?

Ok. So, you ask what a tax accountant is. The short answer, a Tax Accountant is someone who has been train in preparing income tax returns and is an Accountant. Thus, the term Tax Accountant refer to someone that specialize in the tax laws, rules, and regulations.

Ideally, a Tax Accountant training must include any of the following.

  • An Attorney
  • CPA – Certified Public Accountant
  • Enrolled Agent
  • Tax Practitioner

These are the four categories of people the IRS considers preparing taxes and represent their clients. The list of people practicing before the IRS is much longer. See Publication 947 (02/2018), Practice Before the IRS and Power of Attorney | Internal Revenue Service

However, a Tax Accountant must know tax laws as well as General Accepted Accounting Principles (GAAP). Sixty percent (60%) of tax filing deals with tax laws and the other forty percent (40%) deals with accounting.

So then, a Tax Accounting is someone with adequate knowledge of tax laws as well as General Accepted Accounting Principles. These two qualities are not mutually exclusive.

Can A Tax Preparer prepares Tax Returns If They Owe the IRS

The answer is no. If you owe the IRS, you will need to pay the IRS to continue as a Tax Preparer.

Attorneys, certified public accountants, enrolled agents or anyone who gets paid to prepare tax returns may owe a penalty if they don’t follow tax laws, rules and regulations.
https://www.irs.gov/payments/tax-preparer-penalties

Smart Income Tax Filing for Uber & Lyft Drivers

Most Uber and Lyft drivers i.e. gig economy workers such as DoorDash Driver, InstaCart, UberEats, Postmate, or eveb Airbnb people prepare for tax filing by waking up and gathering receipts laying around or pulling out receipts they may have stuck away some where to file their tax return.

Next, they began price hunting googling and calling tax preparation services. The other option is to walk into a tax store such as Jackson Hewitt or H&R BLOCK ready to file their tax returns with the papers they gathered.

Alternatively, others choose the easier and simple way to file their tax return using intuit Turbotax. The Do-It-Yourself method.

These approaches are cavalier. This is the lazy man approach. This rob you of the Tax Deductions and Tax Credits you are entitle to if you keep good records.

Ridsharing workers (Uber & Lyft drivers) need to fully understand the Tax Benefits and Tax Advantages that come with good record keeping; or partnering with a Tax Professional such as a Tax Accountant all year round to take advantages of the Tax Savings, Deductions, and Credits you are entitle to.

At PREMIER Financial Tax & Accounting Services dba FRIENDLY Tax Services, we like to help you benefits from these tax deductions and credits tax by partnering wiith you all year round. We are gig economy experts; Uber and Lyft Income Tax Preparer Expert serving the Glendale, Burbank, Pasadena and the greater Los Angeles area. We will help you throughout the year in keeping good records so at tax time, we will prepare and file your tax return for half the cost you will pay a CPA.

We like to partner with you.

Friendly Tax Services

Friendly Tax Services is the premier income tax preparation firm for individuals, families, small business owners and the self-employed; Uber, Lyft, Taxi, and Limousine drivers; Actors, Independent Contractors and Entrepreneurs. We have empathy and understand the toll driving takes on Uber, Lyft, Taxi, and Truck drivers. That driving is time consuming. Uber drivers just don’t have the time it takes time to keep track of those business-related expenses.


Contact Us

  • Address :

    1010 N Central Ave. Suite 415 Glendale, CA 91202
  • Call Us :

    (323)451-5768
    (866)542-9551
  • E-mail Us :

    Contact@LAPremierTax.com
FRIENDLY Tax Services (Accountants and Tax Preparers)