Well… the headline of the story was more grabbing than the actual content….but heck it worked on us, and grabbed our attention….
Here are the key points from the IRS article:
1. Gather tax paperwork and records for accuracy to avoid missing a deduction or credit.
Some information taxpayers need before they begin includes:
- Social Security numbers for everyone listed on the tax return,
- Bank account and routing numbers,
- Various tax forms such as W-2s, 1099s, 1098s and other income documents or records of digital asset transactions,
- Form 1095-A, Health Insurance Marketplace statement,
- Any IRS letters citing an amount received for a certain tax deduction or credit.
We are good with this… a little obvious, but ok… Measure twice cut once and be safe! Onward ….
2. Remember to report all types of income on the tax return. (We would add, reported or not!)
This is important to avoid receiving a notice or a bill from the IRS. Don’t forget to include income from:
- Goods created and sold on online platforms,
- Investment income,
- Part-time or seasonal work,
- Self-employment or other business activities,
- Services provided through mobile apps.
We would add, just because you did not receive a tax notice, DOES NOT mean the IRS did not and is looking for the appropriate notation on your tax return (Huge amount of time this occurs with cashing Series EE bonds) … a missing item is an easy automated paper letter audit….and as mentioned here absolutely requires a response
From the afore mentioned post :
Amazingly nearly 2/3 of audits, which are almost all done by paper due to the cost of a field audit are not answered, resulting in a claim on the taxpayer. Bottom line, make sure you show the IRS that you’re answering their questions in a timely fashion and expect a paper computer driven notice.
3. File electronically with direct deposit to avoid delays in receiving a refund.
We are really good with this one, and have been encouraging ES payments electronically for some time now.
Ok… that is about the end of what we like in the article and what applies to everyone that is reading this post….
We find the IRS reasonably fair… sometimes they lead with you are the bad guy trying to cheat…but this is usually diffused with a nice appropriate timely answer….
Have a Great “Basic IRS Tips Review” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
$treet-¢ents 
February 2023 – Financial Planning and Capital Market Review – Tax Preparation(s) and Reminders – ODTE’S (What?) – Advanced Analysis Series – When Good Economic News is Bad – By John Kvale CFA, CFP
Hello and Welcome to our February 2023 Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets thoughts and current events!
Hope you enjoy!
February 2023 Video –
YouTube
Financial Planning Tip(s)
All About Taxes or the Getting Ready for the Processing of Personal 1040’s
Corrected 1099 Reminder
Just last Friday we reminded of the Corrected 1099 time frames …. and NOT to rush your taxes if you have after tax accounts that generate the all encompassing 1099 Misc and Int Tax Forms ….
With originals due on or around the end of February …. aka NOW – hah The good ole Corrected’s are a few weeks out yet… not to worry we will let you know who those lucky ones are that get a Corrected and a headcount that let’s us know if those early planners/filers may be safe to go forward !
IRS Pointer and J.K. Financial, Inc. Important Reminder too
Also, early in the month here, which may seem like and eternity ago (or not) we highlighted an IRS heads up email about prepping for Taxes AND we added our most important thought, which has come into play multiple times already this season…hence the happy repeat and acknowledgment :
” … We would add, just because you did not receive a tax notice, DOES NOT mean the IRS did not and is looking for the appropriate notation on your tax return (Huge amount of time this occurs with cashing Series EE bonds) … a missing item is an easy automated paper letter audit….and as mentioned here absolutely requires a response …”
Capital Market Comments – Advanced Analysis Series Begins
ODTE’S — Zero Dated to Expire Options – Part Two of our Advanced Analysis Series
Here in this Post we talk about a VERY heavy topic …. ODTE (Zero Dated to Expire Options) their unusual quantities, as well as their possible Capital Market manipulation …. not only that, but this post also is Part 2 of our Multiple part series that we intend to do this year… in addition, here is a screencast video during market hours to help explain our point too…
When “Good” News can be Bad – Fast Economic Reminders
In another reminder like post, here we speak of when “Good” News can be seen as bad due to the FOMC (Federal Open Market Committee) attempt to slow the economy…
The good news is from this report lots of jobs and more than expected…. Bad News… Fed may continue to be aggressive in slowing the economy… aka Higher short term rates…
Two year at the time was 4.41% now 4.81% a LARGE move for such a short term of 2 years!
Have a Great Day, Talk to You at the End of March!
John A. Kvale CFA, CFP
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Posted in Audio, FOMC, General Financial Planning, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Retirement Planning, Video
Tagged Form 1040, Income Taxes, IRS, John Kvale, Monthly Review, personal tax returns, Personal Taxes