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Taxpayers Who Need Last Year’s Tax Return Have Several Options

Help is available for taxpayers who need tax information for prior years, but who didn’t keep copies of their returns. There are options for helping taxpayers get the information they need.

Taxpayers should generally keep copies of their tax returns and any documentation for at least three years after they file. If taxpayers didn’t keep these records, here are some things they can do:

Ask software provider or tax preparer
Those who need a copy of their tax return should check with their software provider or tax preparer first. Prior-year tax returns are available from the IRS for a fee.

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7 IRS Tax Lessons From John McAfee’s Tax Evasion Indictment

IRS Tax Lessons

Colorful tech figure and sometimes taunter of the IRS John David McAfee has been indicted for federal income tax evasion. Given his profile, particularly such antics as proclaiming that he isn’t filing tax returns but the IRS can come find him, it may not seem a surprise that McAfee is in some serious hot water. He has long been completely out of the antivirus company that bears his name, but he has still been in the news in numerous controversial ways over the last decade. Everyone has to file tax returns of course, even McAfee, and failing to file can be criminal. The indictment dates from June 15, 2020, but it was just unsealed following McAfee’s arrest in Spain where he is awaiting extradition to the U.S. This is an indictment, so the charges have yet to be proven. But it may be hard for McAfee to explain himself after he once colorfully admitted to not paying taxes in a video posted on Twitter. According to the indictment, McAfee earned millions from promoting cryptocurrencies, consulting, speaking, and selling the rights to his life story. From 2014 to 2018, the feds allege that McAfee failed to file tax returns despite receiving considerable income. How could he not file returns or report income?

The indictment alleges that McAfee directed that payments due him should instead go into bank accounts and cryptocurrency exchange accounts in the names of nominees. Hiding things, after all, doesn’t change the tax impact, and can actually make matters worse. The indictment also claims that he tried to evade the IRS by putting other names on real estate, a yacht and more. These are only allegations, but if he is convicted, McAfee faces a maximum sentence of five years in prison on each count of tax evasion, and a maximum sentence of one year in prison on each count of willful failure to file a tax return. He can also expect to pay taxes, big penalties, and interest. McAfee is presumed innocent unless and until he is proven guilty beyond a reasonable doubt, but as McAfee and his legal team mount a defense, here are some key lessons:

Report your income, and always file. You must file a tax return each year with the IRS if your income is over the requisite level. Don’t forget, and don’t be late either, even if you can’t pay what you owe. File anyway, and you can work out payments later. The statute of limitations on audit—usually three years and sometimes six years—can’t even begin to run until you file your return. So file, and remember, the U.S. taxes all income wherever you earn it.

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Here’s What Taxpayers Need to Know About Their Right to Finality

Taxpayer Bill Of Rights -TABOR

Taxpayers interacting with the IRS have the right to finality. This is especially for taxpayers who are being audited. This is one of ten basic rights —collectively known as the Taxpayer Bill of Rights.

For taxpayers who are in the process of an audit, here’s what they should know about the right to finality:

• Taxpayers have the right to know: 
   - The maximum amount of time they have to challenge the IRS’s position.
   - The maximum amount of time the IRS has to audit a tax year or collect a tax debt. 
   - When the IRS has finished an audit.

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Learn How to Recognize Fraud Clues & Warning Signs at Your Facility

Recognizing fraud in its many forms is paramount to managing a facility. Missing the clues and warning signs can cost money, time and energy.

In the soon-to-be-released "Self-Storage Auditing for Fraud" book, Carol Mixon brings her wealth of experience to help you detect fraud, understand what to look for, identify the tell-tale signs, see the inconsistencies, and learn what not to do.

Pre-order now and get the book as soon as it comes off the presses. Only $29.95!

Self-Storage Auditing for Fraud

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IRS Reminds Taxpayers of the Home Office Deduction Rules

Small Business Owner

The Internal Revenue Service wants individuals to consider taking the home office deduction if they qualify. The benefit may allow taxpayers working from home to deduct certain expenses on their tax return.

The home office deduction is available to qualifying self-employed taxpayers, independent contractors and those working in the gig economy. However, the Tax Cuts and Jobs Act suspended the business use of home deduction from 2018 through 2025 for employees. Employees who receive a paycheck or a W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home.

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The Step-By-Step Playbook for Turning a Real Estate Asset Into a Thriving Self Storage Business

Growing Wealth in Self Storage
In this book, the co-founder and owner of Keylock Storage teaches readers how to identify strong self-storage investment opportunities, allocate capital, and leverage management expertise to turn a mom-and-pop real estate asset into an income-producing venture!

Inside:

· Why self-storage is a great investment opportunity

· How to get started in the industry

· Understanding valuation and finding deals

· Financing your facility

· Evaluating competition and the deal

· Turning around an underperforming asset

· How to reduce risk

· Leveraging a static asset into a dynamic business

· Much more!

A New Self-Storage Legal Threat Amid COVID-19: Moratoriums on Lien Sales and Late Fees

COVID-19 Self-Storage Legal Threat
A handful of local officials are issuing moratoriums on self-storage lien sales and late fees, which severely impacts a facility operator’s right to take control of units in default. A legal expert weighs in on the consequences to the industry and offers alternatives.
As I write this article, we’re seeing some interesting legal developments in the self-storage industry due to the coronavirus pandemic. Despite existing state laws, some towns, cities and counties are imposing restrictions on self-storage lien sales and, in some instances, late fees. This is a remarkable and somewhat frightening turn of events.
Essentially, officials in places like California and Massachusetts are conveying that despite the state law that provides a remedy to resolve nonpayment of self-storage rent, facility operators will no longer be allowed to perform lien sales or charge late or other fees to cover any expense and loss incurred as a result of tenant delinquency. I’m sensitive to the harsh realities of the COVID-19 crisis and I understand some customers are struggling financially. But to survive, owners must be able to get their units back.

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Working Virtually: Avoid Phishing Scams

Virtual office Avoid Phishing Scams

The Internal Revenue Service and the Security Summit partners today warned tax professionals to be alert to new phishing scams that try to take advantage of COVID-19, Economic Impact Payments and increased teleworking by practitioners.

The IRS, state tax agencies and the nation’s tax industry urged tax firms to review and heighten their data protection plans this summer as cybercriminals step up efforts to steal client tax information. Crooks are targeting tax professionals as well as taxpayers.

Avoiding phishing emails is the fourth in a five-part Security Summit series called Working Virtually: Protecting Tax Data at Home and at Work. The Security Summit initiative by the IRS, state tax agencies and private-sector tax industry spotlights basic security steps for all practitioners, but especially those working remotely in response to COVID-19.

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Earning Side Income: Is it a Hobby or a Business?

Hobby or business woodworker

Whether it’s something they’ve been doing for years or something they just started to make extra money, taxpayers must report income earned from hobbies in 2020 on next year’s tax return.

What the difference between a hobby and a business? A business operates to make a profit. People engage in a hobby for sport or recreation, not to make a profit.

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IRS Urges Employers to Choose Carefully When Selecting a Payroll Service Provider

Jerry Jones IRS Payroll Service Provider

Using a reputable firm or group can protect employers from fraud; options include PSPs, RAs and CPEOs

WASHINGTON — The IRS reminded employers today to carefully choose their payroll service providers following continuing concerns that some disreputable organizations can fail to deposit employment taxes, leaving businesses vulnerable to unpaid bills.

Many employers outsource their payroll and related tax duties to third parties. This streamlines business operations by collecting and timely depositing payroll taxes on the employer’s behalf and filing required payroll tax returns with state and federal authorities.

jerry jones self storage logo

“A business doing everything else right can suddenly find its future in doubt if it falls victim to an unscrupulous third party that fails to make the required payroll and withholding deposits,” said IRS Commissioner Chuck Rettig. “We want to encourage all employers to understand their obligations and choose wisely when it comes to selecting a trusted payroll service to carry out this critical function. This is especially important right now as businesses face unique challenges because of the pandemic.”

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Member of AICPA, Member of CA Society of CPA's, Member of NV Society of CPA's and Member of Certified Fraud Examiners Association


A Professional Corporation
4600 Kietzke Ln, Suite E-148
Reno, NV 89502
The Selfstorage CPA
Jerry Jones, CPA
775.828.0767
fax 775.348.9518
jerry@theselfstoragecpa.com