What records should I keep and for how long?

Keep tax returns and supporting documents for at least 3 years, or up to 7 years in some cases. Asset records should be kept for as long as you own the asset plus several years after sale.

How can I get more business deductions?

Keep detailed records, separate business and personal expenses, track mileage, use an accountable plan for reimbursements, and work with a CPA to uncover overlooked deductions.

What should I do if I receive an IRS audit notice?

Respond promptly, gather documentation, and contact a CPA to represent you. Only provide the information requested and remain cooperative throughout the process.

How do I plan for retirement from a tax perspective?

Use a mix of traditional and Roth retirement accounts, plan for required minimum distributions, and consider timing Social Security and withdrawals to minimize taxable income.

What are the tax benefits of leasing versus owning a business vehicle?

Leasing allows you to deduct the business-use portion of lease payments and avoid depreciation schedules, while owning may allow for large upfront deductions through Section 179 and bonus depreciation.

What expenses can I deduct as a small business owner?

Common deductions include office supplies, marketing costs, business travel, vehicle expenses, software, professional fees, and a home office (if used exclusively for business).

How should I structure my business for tax efficiency?

The right structure—LLC, S-Corp, or C-Corp—depends on your income, growth plans, and liability concerns. A CPA can evaluate your situation to recommend the most tax-efficient setup.

What are the benefits of hiring a CPA versus using tax software?

A CPA offers personalized advice, ensures compliance with complex tax laws, finds deductions you might miss, and can represent you before the IRS—advantages software alone cannot provide.

How can I legally minimize my tax liability?

You can legally minimize taxes by maximizing contributions to retirement accounts, claiming all eligible deductions, timing income and expenses strategically, and leveraging tax credits. A CPA can help identify opportunities specific to your situation.

What documents do I need to provide for tax preparation?

You should provide identification, prior year’s tax return, W-2s, 1099s, investment income statements, deductible expense receipts, and any IRS notices. Business owners should also include income statements, expense reports, and payroll records.

Navigating IRS Notices: Your San Diego Tax Resolution Guide

Receiving an IRS notice can be a stressful experience. Understanding what the notice means and how to respond is crucial to protecting your financial well-being. This guide, brought to you by Sharon Gross, CPA, a leading provider of San Diego Tax Preparation services, will provide you with essential information on navigating IRS notices and seeking tax resolution in San Diego.

If you're a business owner seeking expert guidance, Sharon Gross San Diego Business Consulting and CFO Services can provide the proactive financial planning and strategic insights you need to thrive. For families planning for the future, Sharon offers comprehensive tax and financial advisory services, including Sharon Gross San Diego Trust and Estate Tax Specialist expertise.

Understanding Common IRS Notices

IRS notices come in various forms, each addressing a specific issue. Here are some of the most common types:

CP01/CP01A: Identity theft notices, indicating that someone may have used your Social Security number to file a fraudulent tax return.
CP11/CP12: Changes made to your tax return due to mathematical errors or incorrect information.
CP2000: Notification of underreporting income, often based on discrepancies between your reported income and information received from third parties (e.g., W-2s, 1099s).
CP501/CP503/CP504: Series of notices indicating unpaid taxes, penalties, and interest.
Notice of Intent to Levy: A final warning before the IRS begins seizing assets to satisfy unpaid tax debts.

Ignoring these notices will not make them go away. Prompt action is essential to avoid further penalties and complications.

Responding to an IRS Notice: A Step-by-Step Guide

Read Carefully: Take the time to thoroughly read and understand the notice. Identify the issue, the tax year in question, and the deadline for responding.
Gather Documentation: Collect all relevant documents, such as tax returns, W-2s, 1099s, receipts, and any other supporting evidence.
Assess the Issue: Determine whether you agree with the IRS's assessment. If you disagree, identify the reasons why and gather evidence to support your position.
Respond in Writing: Always respond to the IRS in writing, even if you also plan to speak with them by phone. Clearly state your position and provide copies of all supporting documentation. Keep a copy of your response for your records.
Meet Deadlines: Ensure that your response is postmarked by the deadline specified in the notice. Failure to meet the deadline could result in penalties and interest.

When to Seek Professional Tax Resolution Assistance

While some IRS notices can be resolved on your own, others may require the expertise of a tax resolution professional. Consider seeking assistance from Sharon Gross IRS and State Tax Resolution in San Diego, if you encounter any of the following situations:

You disagree with the IRS's assessment and need help building a strong case.
You are facing a tax audit or examination.
You have unfiled tax returns or significant tax debt.
You are experiencing wage garnishment, bank levies, or other enforcement actions.
You need help negotiating a payment plan, Offer in Compromise (OIC), or other tax relief options.

Working with a qualified professional like Sharon Gross can help you navigate the complexities of the tax system and achieve the best possible outcome. Sharon can provide expert representation, negotiate with the IRS on your behalf, and develop a customized tax resolution strategy tailored to your specific circumstances. If you're involved in real estate transactions, Sharon Gross Real Estate Tax Planning San Diego Expert can provide valuable advice on minimizing your tax liabilities.

Benefits of Professional Tax Resolution

Engaging a tax resolution expert offers numerous advantages:

Expert Knowledge: Tax professionals possess in-depth knowledge of tax laws, regulations, and procedures.
Effective Representation: They can represent you before the IRS, protecting your rights and interests.
Negotiation Skills: They can negotiate with the IRS to reduce penalties, interest, and tax debt.
Time Savings: They can handle all aspects of the tax resolution process, freeing up your time and energy.
Peace of Mind: Knowing that you have a qualified professional on your side can provide peace of mind during a stressful time.

If you've received an IRS notice, don't panic. Understanding your rights and taking prompt action is key. For expert guidance and personalized tax resolution services in San Diego, contact Sharon Gross, CPA today.

Need Help with an IRS Notice?

Contact Sharon Gross, CPA for expert tax resolution services in San Diego.

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