Individual Taxes WW 2016_7

First, the bad news. The IRS is hiring 600-700 new personnel to increase the number of audits and tax enforcement. The Tax Court has held that using Turbotax is no defense against large IRS penalties when you make large errors on your tax return. What to do?

My Advice: Use a tax professional like me for tax planning and preparation, not Turbotax or an amateur tax preparer. Ask your CPA how much of his or her practice is taxes.

The good news. There’s a way to get a pay raise from the IRS. How?

My Advice: Get midyear tax planning. Take advantage of my *FREE 1/2 HourOffer* and increase your paycheck by your tax savings For example, if I find $1,500 in deductions that you missed, and you are in the 28% tax bracket, with six months left in the year, you can add $70.00 per month to your paycheck.
If you take me up on my*FREE 1/2 HourOffer:* I will apply my Tax Mastery© program to find deductions you are missing. A typical one would be your actual sales tax deduction, as discussed below.  A $1,500 increase in that deduction will save you $420 if you are in the 28% tax bracket. With six months left in the year, you can decrease your federal tax withholding and increase your take home pay by $70 per month for the rest of the year. And that is the savings with just one deduction.

If you want to know more, for roughly $300-500 I will use Tax Mastery© to give you written tax planning instructions covering your entire tax return and save even more. I can also forecast your taxes for 2016.

Sales tax deduction. In my experience, the IRS table sales tax figures are much too low. However, the IRS requires that you keep actual receipts, not charge statements. I can tell you how to make this easier.

If you don’t want to keep your receipts, you can use the IRS table and then add the sales tax from buying a car or boat. The big tip here is to calculate sales tax on a home improvement. To prove these, be sure to have your contractor break out the sales tax for the materials that go into your home ad improvement. It will be big.

One thing to be aware of is that the Tennessee sales tax is 7% (5.5% on nonrestaurant food).  And don’t miss the Shelby County sales tax, 2.25%, 2.75% on purchases over $1,600.

About Wis Laughlin

I help clients with tax preparation and IRS representation, estate planning, and complex contracts, including LLC's. As a former IRS tax attorney in their National Office. picked Wis in 2017 and several prior years as one of the Top Tax and Estate Lawyers in Tennessee. I am your advocate, not your accountant. I don't tell you what you can't do. I show you how to do it.
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