ABA Tax Accounting - Protection Plus Audit Defense

 

Season’s Greetings:  

With the IRS expected to receive up to $80 billion to bolster their enforcement efforts, you may feel a little more anxious than ever about your 1040 tax returns for year 2022 and forward. Fortunately, we have partnered with an experienced team of CPAs and EAs from Protection Plus, the industry’s leading tax audit defense service to bring you the Protection Plus $1 Million Tax Audit Defense that will provide up to $1,000,000 of services to find a resolution and Identity theft protection If you receive a tax audit, letter, or notice from the IRS or state tax authorities or become the victim of identity theft.

Staring with 2022 tax filing, our clients will receive expert tax representation and relief from Protection Plus from the frightening of facing the IRS alone when they file their 1040 Individual tax returns through ABA Tax Accounting.

 

Included benefits with your individual 1040 tax return:

1.  $1 Million Tax Audit Defense (IRS and State tax authority) - Audit defense is backed by a $1 Million Dollar Tax Audit Defense, which guarantees Protection Plus will provide up to $1 million of services on every audit to get the best possible resolution for you. Assistance includes but is not limited to:

·       Interpret letters from the IRS and the state, and help with correspondence

·       Give guidance on next steps and representation as necessary

·       Research the statuses of returns with the IRS

·       Reconcile CP2000s and other inquiry letters

·       Address issues with IRS forms including Schedules A, C, and E

·       Assist with denied credits

·       Resolve tax debts and rejected ITINs

 

2.  Identity Theft Restoration - If you fall victim to a tax or non-tax identity theft incident, protection plus will assist you in restoring your identity as quickly as possible. They will help with issues including, unauthorized access to bank accounts, tax fraud, and more. You and your loved one that are listed on your 1040 will be covered with comprehensive identity theft restoration services, including:

·       24/7 access to identity theft restoration advocates

·       Notifications to banks and agencies if other forms of ID were stolen

·       Fraud alerts on credit records

·       Daily credit monitoring from all three bureaus for 6 months after ID theft has been reported

3.  $2,500 Tax Preparation Guarantee - This is the Tax Reimbursement Benefit, reimbursement to any tax penalty or interest not to exceed $2,500.00 and will be reimbursed after a receipt of payment to the IRS is provided to ABA Tax Accounting.

 

Certificate of Membership

Thank you,

File With Confidence

 

1.  File With Confidence

 

We want to make dealing with a tax notice easy and stress-free. If you receive a notice, our audit defense department at Protection Plus can help! This is just one of the many benefits of working with us to file your 2022 personal tax return.

Please do not hesitate to call us, if you have any other questions or need further guidance. Call Today for a free consultation at 651-300-4777   Cell (612) 282-3200

Tax Protection Plus

ABA Tax Accounting – Tax Protection Plus

ABA Tax Accounting has partnered with an experienced team of CPAs and EAs from Tax Protection Plus who are on your side to handle circumstances when our 1040 clients receive notices from the IRS or state tax authorities, get audited or become the victim of identity theft.

Staring with 2022 tax filing, our clients will receive expert tax representation and relief from Protection Plus from the frightening of facing the IRS alone when they file their 1040 Individual tax returns through ABA Tax Accounting.

Who is Protection Plus?

With the IRS expected to receive up to $80 billion to bolster their enforcement efforts, you may feel more anxious than ever about your 1040 tax return this year. Fortunately, we partner with 

Protection Plus, the industry’s leading tax audit defense service. If you receive a tax audit, letter, or notice, you can be sure you’ll be backed by their $1,000,000 Tax Audit Defense ™ program.

Protection Plus has experienced audit assistance professionals that can provide advice for even the most complicated inquiries with a simple phone call. Protection Plus works directly with the taxpayer and the IRS or State to resolve the matter.

They shield our clients from IRS notices, audits, and Identity theft to give them peace of mind all year long.

Notices and Tax Audit Defense

The bilingual (English and Spanish) team of experienced EA and CPA case resolution specialists provides personalized support if a client receives a notice from the IRS or state or gets audited.

Assistance includes but is not limited to: 

• Interpret letters from the IRS and the state, and help with correspondence
• Give guidance on next steps and representation as necessary 
• Research the statuses of returns with the IRS 
• Reconcile CP2000s and other inquiry letters 
• Address issues with IRS forms including Schedules A, C, and E 
• Assist with denied credits
• Resolve tax debts and rejected ITINs

1. $1 Million Tax Audit Defense

·       Do you know what to do after receiving a tax notice from the IRS? We partner with Protection Plus, the leading tax audit defense experts, who will provide up to $1,000,000 of services to find a resolution. $1 Million Tax Audit Defense™.

·     With Protection Plus, you have an entire tax audit defense department you can rely on. If our client receives a tax notice, audit, or inquiry, they will provide up to $1,000,000 in services to reach a resolution. That includes a Professional Case Assessment, a professionally prepared response to the taxing authority, and representation before the IRS or State.

 2. Identity Theft Restoration

If one of our clients falls victim to a tax or non-tax identity theft incident, Our Tax Protection Plus will assist in restoring our 1040 client’s identity as quickly as possible. They will help our clients with issues including, unauthorized access to bank accounts, tax fraud, and more.

Our 1040 clients will be covered with comprehensive identity theft restoration services, including:

• 24/7 access to identity theft restoration advocates 
• Notifications to banks and agencies if other forms of ID were stolen
• Fraud alerts on credit records 
• Daily credit monitoring from all three bureaus for 6 months after ID theft has been reported

 3. Money Back Preparer Guarantee/$2,500 guarantee

File Your 1040 Individual Income tax with ABA Tax Accounting with confidence! We want to make dealing with a tax notice easy and stress-free. If you receive a notice, our audit defense

department at Protection Plus can help! This is just one of the many benefits of working with us to file your 1040 individual income tax return.

We’re confident in our work and we have a guarantee to back it up. If we make a mistake in preparing your 1040 individual income tax return, they will reimburse you up to $2,500 for additional fees, penalties, and interest through our partnership with Protection Plus. Subject to terms and conditions.

 

How does it work?

Opening a case with Protection Plus is simple. If clients receive a notice or suspects they're a victim of identity theft, they'll connect you with a case resolution specialist who will guide you through the entire process.

1. Client Receives a Notice: Ouch! No one likes this part.

2. Notify Protection Plus: Upload the 1040 and notice received to get started.

3. They Handle the Rest: You can be part of the process as much or as little as you prefer.

Protection Plus is our premier partner for tax audit defense and identity theft restoration. If you receive a tax notice from the IRS or State tax authorities, you can be rest assured that you'll have an experienced EAs and CPAs team on your side to find a resolution.

Please do not hesitate to call me, if you have any other questions or need further guidance.

Call us for a free consultation at 651-300-4777.

 

Protection Plus – $1,000,000 Tax Audit Defense

 

Protection Plus – $1,000,000 Tax Audit Defense

We want to make dealing with a tax notice easy and stress-free. If you receive a notice, our audit defense department at Protection Plus can help! This is just one of the many benefits of working with us to file your 2022 personal tax return.

IRS Audit Rates Don't get complacent...resurgence is underway

The IRS reported audit rates continue to be low...very low. But that is now changing with thousands of auditors being hired for a post-pandemic scale-up of their reviews.

 

So don’t get complacent. A closer look at the IRS data release reveals some audit pitfalls you should know about.

 

Observations:

·        Fewer audit examinations obscure the reality that you may still have to deal with issues caught by the IRS’s automated computer systems. While not as daunting as a full audit, you'll need to keep your records handy to address any problems.

·        Average rates are declining, but audit chances are still high on both ends of the income spectrum: no-income taxpayers and high-income taxpayers.

·        No-income taxpayers are targets for audits because the IRS is cracking down on fraud in refundable credits designed to help those with low income, such as the Earned Income Tax Credit (EITC). And while not on the charts, 87% of Earned Income tax returns that are audited had additional tax applied!

·        High-income taxpayers have long been a target for IRS audits. This group, however, saw a big decline in audit rates during the pandemic. Still, taxpayers with over $500,000 in income have more than double the chance of being audited than lower-income taxpayers. Not only do these taxpayers tend to have more complicated tax returns, but the vast majority of federal income tax revenue comes from them.

·        Complicated returns are more likely to be audited. Returns with large charitable deductions, withdrawals from retirement accounts or education savings plans, and small business expenses (using Schedule C) are more likely to be the target of an IRS audit.

 

Stay Prepared

 

Always retain your tax records and supporting documents for as long as you need them to substantiate claims on a return. The IRS normally has a window of three years from the filing date to audit a return, but this can be extended if the agency believes there’s any fraudulent activity.

 

If you receive an audit letter from the IRS, it’s best to reach out for assistance as soon as possible.

 

 

Thank you,

 

New Electric Vehicle and Other Energy Credits

 

Tax incentives for purchasing clean (electric) vehicles and installing high efficiency home improvements are some of the featured provisions in the recently-passed Inflation Reduction Act (IRA). Here’s a closer look at some of the bill’s tax provisions regarding the new incentives.

 

Clean Vehicle Credit (formerly Plug-In Electric Vehicle Credit)

Here is a summary of the details surrounding the new Clean Vehicle Credit:

 

·        The tax credit of up to $7,500 for electric vehicles (EVs) is extended for 10 years until December 2032.

·        Starting in 2023, used cars now qualify for up to a $4,000 tax credit.

·        Starting in 2024, you can take the credit as a discount at the time you purchase the vehicle instead of waiting to file your tax return.

·        In the past, if a manufacturer had produced at least 200,000 EVs, you could no longer qualify for the tax credit if purchasing a vehicle from that manufacturer. The new bill removes this 200,000 vehicle cap starting in 2023.

 

On the other hand, there are significantly more hurdles you’ll have to overcome to qualify for the new Clean Vehicle Credit:

 

MSRP hurdle

·        New clean cars must have a manufacturer’s suggested retail price (MSRP) of no more than $55,000.

·        New clean vans, pickup trucks, and SUVs must have an MSRP of no more than $80,000.

·        Used clean vehicles must cost no more than $25,000.

 

Income hurdle

·        For a new clean vehicle, your adjusted gross income must be less than $150,000 if single, $225,000 if head of household, or $300,000 if married.

·        For a used clean vehicle, your adjusted gross income must be less than $75,000 if single, $112,500 if head of household, or $150,000 if married.

 

Domestic production hurdle

·        The final assembly of a new clean vehicle must occur in North America as of August 16, 2022.

·        Starting in 2023, at least 40% of critical battery minerals and 50% of battery components must be recycled, mined, or manufactured in the U.S.

·        Many automakers are unsure whether they will be able to meet this criteria as the new law is currently written.

 

What you can do

·        Wait until 2023 to buy Tesla and GM vehicles. Because Tesla and General Motors have both crossed the 200,000 electronic vehicle threshold, any Tesla or GM vehicle purchased in 2022 won’t qualify for the tax credit. Starting in 2023, certain Tesla and GM vehicles will once again qualify for the credit once the 200,000 limit is removed.

·        Government to release further guidance. There are still many unanswered questions about how the new Clean Vehicle Credit will be implemented. The federal government plans to release further guidance by the end of the year that hopefully answers some of these questions.

 

Other Tax-Related Provisions

·        Qualifying high efficiency home improvements now qualify for an annual $1,200 credit, up from a $500 maximum lifetime credit.

·        Energy efficient heat pumps, heat pump water heaters, central air conditioners, wood stoves, and natural gas or oil furnaces or boilers qualify for a $2,000 credit.

 

What you can do

·        Look for the details. Prior to purchasing new high efficient home improvements, double check how the new credit will apply to your purchase.

·        Check with manufacturers. Most manufacturers are motivated to understand the new program and could be a good resource to see how they apply to your situation.

 

There will be more details on how to obtain these credits in the future. So stay alert and check before making any purchase decisions if you are expecting to take any of these new energy saving credits.

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Reminder: Third Quarter Estimated Taxes Due

 If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment. The third quarter due date is now here.

 Due date: Thursday, Sept. 15, 2022

 Remember, you are required to withhold at least 90 percent of your current tax obligation or 100 percent of last year’s obligation. * A quick look at last year’s tax return and a projection of this year’s obligation can help determine if a payment is necessary. Here are some other things to consider:

•  Underpayment penalty. If you do not have proper tax withholdings during the year, you could be subject to an underpayment penalty. The penalty can occur if you do not have proper withholdings throughout the year. A quick payment at the end of the year may not help avoid the underpayment penalty.
• W-2 withholdings have special treatment. A W-2 withholding payment can be made at any time during the year and be treated as if it was made throughout the year. If you do not have enough funds to pay the estimated quarterly payment now, you may be able to adjust your W-2 withholdings to make up the difference.
• Self-employed. Remember to account for the need to pay your Social Security and Medicare taxes as well. Creating and funding a savings account for this purpose can help avoid the cash flow hit each quarter when you pay your estimated taxes.
• Don't forget state obligations. With the exception of a few states, you are often also required to make estimated state tax payments if you're required to do so for your federal taxes. Consider conducting a review of your state obligations to ensure you meet these quarterly estimated tax payments as well.

*If your income is over $150,000 ($75,000 if married filing separately), you must pay 110 percent of last year’s tax obligation to be safe from an underpayment penalty.

2022 Inflation Reduction Act

 The Senate Bill is 755 pages, much of which is devoted to prescription drugs and insurance and non-tax items. The President has not signed this bill as of today.

 

As to the major tax points, I have bold faced the ones affecting most Americans:

 

Corporate Alternative Minimum Income Tax-Sec. 10101

·         Only applies to companies with greater than $1 billion in book income. Not a concern for us.

 

Excise Tax on Repurchase of Corporate Stock-Sec. 10201

·         Only applies to publicly traded companies. Not a concern for us.

 

IRS funding-Sec. 10301

·         Billions provided for the IRS. Not a direct concern for us.

 

Energy Producer Credit-Sec. 13101

·         The current credit rate is extended from the end of 2021 to the end of 2024, as has most other energy and fuel related credits for energy producers.

 

Nonbusiness Energy Credits-Sec. 13301

·         Most residential energy credits (IRC Sec. 25C) like insulation, windows, doors and energy efficient furnaces are extended through the end of 2032 instead of expiring at the end of 2021.

 

 Residential Clean Energy-Sec. 13302

·         The 2022-2032 home solar/wind credit (IRC Sec. 25D) has been increased back to 30% for 2022 and extended for 10 years at that rate.

 

 Clean Vehicles or Electric Car Credit-Sec. 13401

·         The $7,500 maximum credit is back, but only if certain US component thresholds are met. According to the Congressional Budget Office only 30% of electric vehicles would qualify under the stringent thresholds of US material component requirements.

 

Used Electric Vehicles-Sec. 13402

·         A new credit equal to 30% (max $4,000) would apply for buyers of electric vehicles that are more than 2 years old. It must be bought from a dealer and be the 1st resale.

 

 Qualified Refueling Property Credit-Sec. 13404

·         The alternative energy refueling station (or home electric car charger) credit was extended through 2032.