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How Will The New IRS Crackdown Impact You?

The IRS has launched an extensive crackdown on small business owners across the United States, deploying 30,000 agents to investigate 11.5 million small business owners for potential fraud and misuse of COVID-19 relief funds, particularly from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). This action stems from concerns that a significant portion of the $1.2 trillion in relief funds, intended for employee support, was misappropriated by business owners and shareholders, with estimates suggesting that 70% of the funds did not reach the intended recipients.


According to experts, a substantial amount of the relief funds was diverted for personal use, highlighting cases involving public figures and business moguls accused of exploiting the funds for luxury items and lavish lifestyles. This situation has led to severe legal consequences for those involved, including potential long-term imprisonment.

Several individuals have already been criminally prosecuted by the US Attorney General’s office for obtaining millions of dollars in relief funds with falsified information as well as bank fraud. Many more individuals are expected to follow suit in the coming months as the government tries to redirect those funds to the intended recipients.


The IRS's aggressive campaign aims to recover misappropriated funds and restore public trust in government relief efforts. This large-scale operation underscores the seriousness of the fraud allegations and represents a significant escalation in enforcement efforts. However, there are concerns about the broader economic impact of this crackdown, including potential effects on consumer confidence, market stability, and economic recovery efforts.



Public reaction to these developments is mixed, with some expressing skepticism about the government's ability to redistribute recovered funds fairly and concerns over the influence of wealth and political corruption. There are potential concerns about the role of loan misuse in inflating real estate values and the lavish spending by fraudulent business owners, calling for stringent consequences and the recovery of assets.


The IRS's crackdown is a pivotal moment for the U.S. economy, poised to reshape the business landscape and redefine accountability expectations in the post-pandemic era. It raises questions about how to prevent fraud in government relief programs and the impact on public trust in government aid and financial institutions.


To address these challenges and prevent widespread fraud, it may be necessary to implement stricter verification processes, enhanced monitoring of fund distribution, and more transparent reporting requirements for recipients. Additionally, fostering collaboration between government agencies, financial institutions, and oversight bodies could improve the efficacy of relief programs and ensure that funds reach their intended targets. The fallout from this investigation may also necessitate efforts to rebuild public trust in government aid programs, requiring clear communication, transparency, and accountability from all involved parties.


Attempting to navigate IRS processes without professional advice is akin to sailing treacherous waters without a map. The risks far outweigh the potential savings from not hiring a professional. Certified tax planners, tax attorneys, and Enrolled Agents not only offer peace of mind but also provide strategic advice and representation that can save you from costly mistakes and legal troubles.


If you find that your business has been contacted by the IRS regarding a PPP loan or EIDL, it may be necessary to contact our experienced team of Enrolled Agents, Tax Attorneys, CPAs, and Tax Assistants. You can reach us at 630-832-6503 or info@IRSTroubleSolvers.com for a free consultation with our professionals. 

Navigating Tax Season as an LLC Owner

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When you own an LLC, tax season can be more daunting than ever. Read on to learn what goes into taxes as an LLC owner so you're better prepared.

Surviving Your Taxes: How planning your taxes makes it feel less like the apocalypse.

09 Mar, 2024
Introduction: In the gripping narrative of "The Walking Dead: The Ones Who Lived," characters are thrust into a world of constant threats and uncertainties. At Golden Tax Relief, we understand that while tax season may not involve literal zombies, the feeling of dread and complexity can feel just as daunting. Let's explore how the survival tactics employed by the show's characters can be a metaphor for effective tax planning and how our team can be your ally in this journey. Survival against Odds: Just as the survivors in "The Walking Dead" face a new world of challenges, taxpayers encounter the labyrinthine complexities of the tax system. Preparation and knowledge are your armor and weapons. At Golden Tax Relief, we arm you with the latest tax strategies and regulations, ensuring you're well-prepared long before deadlines approach. Our expertise is your guide through the treacherous terrain of tax season. Community and Contribution: In the post-apocalyptic world, strength lies in numbers and collective wisdom. Similarly, in the realm of tax planning, leaning on the expertise of professionals can make all the difference. At Golden Tax Relief, we foster a community approach, working alongside our clients to understand their unique financial landscapes and ensuring their contributions work in their favor. Like a well-coordinated survival group, we combine our strengths to protect and advance your financial well-being. The Threat of Penalties: In the world of "The Walking Dead," the consequences of missteps can be severe. In the tax world, mistakes can lead to audits and penalties. Our role at Golden Tax Relief is akin to that of a vigilant lookout, helping you steer clear of common pitfalls and ensuring compliance with all tax laws and regulations. We stay at the forefront of tax legislation to shield you from unexpected threats and keep your financial journey on track. Unexpected Challenges and Adaptability: Just as the survivors in the series must adapt to new threats and environments, so must taxpayers in the face of changing tax laws and personal circumstances. Golden Tax Relief prides itself on our adaptability and foresight. Whether responding to an IRS notice or adjusting strategies mid-year, we're equipped to help you navigate the ever-evolving tax landscape with confidence. Resource Management: Resource management is crucial for survival in "The Walking Dead," as it is in effective tax planning. Maximizing deductions, strategizing for future tax liabilities, and ensuring efficient financial planning are paramount. At Golden Tax Relief, we approach your financial health holistically, ensuring every decision is made with your best interests and long-term stability in mind. Conclusion: While the stakes may differ dramatically between a zombie apocalypse and tax season, the principles of survival remain the same: preparation, community, vigilance, adaptability, and resource management. At Golden Tax Relief, we embody these principles in our approach to tax planning, ensuring you're not just surviving tax season, but thriving beyond it. Let us guide you through the complex tax landscape, providing peace of mind and a clear path forward. Welcome to a new era of financial survival, with Golden Tax Relief leading the way.

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Tax Strategies for Your Retirement Income

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Tax-Efficient Ways To Transfer Wealth to the Next Generation

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S Corp Owners: Important Updates regarding 2023 Health Insurance for S Corporation Owners

12 Jun, 2023
Its time for some good news for those S Corp Owners who own more than 2% of your S Corp: there are some good updates when it comes to your health insurance. First things first -- ensure that your health insurance deductions are in order, and avoid the $100-a-day penalties for violating the rules of the Affordable Care Act (ACA). To do this, take the following steps: Get the cost of the health insurance on the S corporation’s books, either by making the premium payments directly or through reimbursement. Ensure that the S corporation includes the health insurance premiums on the owner-employee’s W-2 form, including the additional compensation in box 1 but not in boxes 3 or 5. If you are an owner-employee with more than 2 percent ownership, claim the health insurance deduction as “self-employed health insurance” on line 17 of Schedule 1 of Form 1040. However, there are 2 rules you must meet: not having access to employer-subsidized health insurance and having adequate salary. While the S corporation does not have to provide health insurance benefits for its rank-and-file employees, but if it does, it must use an acceptable ACA plan, such as (among others) the qualified small employer health reimbursement arrangement (QSEHRA) or the individual coverage HRA (ICHRA). Its important to note that the S corporation can reimburse more-than-2-percent owners for individually purchased insurance without any penalties, BUT if it reimburses rank-and-file employees without using the QSEHRA or ICHRA, it faces the $100-a-day penalty per employee. If you are looking to provide health benefits to employees through the S corporation, there are many tax-advantaged options available. If the S corporation provides group health insurance to all employees, including the shareholder-employee, the same rules apply. This, and many other important tax savings strategies could help save you thousands of dollars each year through a qualified tax plan! Call us today at 844-229-8936 to set up an appointment with our certified tax planner and tax coach! Let us put you on the path to savings!

Over-extended? Not all Cancellation of Debt (COD) is Tax-Free

01 Jun, 2023
If you, like so many others, have found yourself over-extended – with a debt to income ratio that will not ever clear up? It happens -- especially if we are heading into a recession. And probably more often than anyone knows. However, sometimes lenders will cancel (forgive) debts that are owed by financially challenged borrowers. While that sounds great – it’s not without it’s downside. While a debt cancellation can help a beleaguered borrower survive, it can also trigger negative tax consequences. Or it can be a tax-free event. There are many things to consider when choosing to take the route of having your debt forgiven. Following are some guidelines to consider. General Rule: COD Income Is Taxable When a lender forgives part or all of your debt, it results in so-called cancellation of debt (COD) income. The general federal income tax rule is that COD income counts as gross income that you must report on your federal income tax return for the year the debt cancellation occurs. Failure to claim this COD income will result in fines and penalties. However, there are some exceptions to the general rule that COD income is taxable. While our Tax Code provides ALL the rules and regulations, and they are generally mandatory rather than elective, that could be a rather long, and boring, way to find out what that means for you. We have broken it down into some simpler terms for you. There are two common exceptions to the COD income being taxable: Bankruptcy Insolvency The process that allows the COD income from taxation under the bankruptcy or insolvency exception is a reduction of the borrower’s so-called tax attributes. Generally speaking, you can reduce these tax attributes (future tax benefits) by one dollar for each dollar of excluded COD income. However, you also reduce tax credits by one dollar for every three dollars of excluded COD income. Any tax attribute reductions are deemed to occur after calculating the borrower’s federal taxable income and federal income tax liability for the year of the debt cancellation. This taxpayer-friendly rule allows the borrower to take full advantage of any tax attributes available for the year of the debt cancellation before those attributes are reduced. Principal Residence Mortgage Debt Exception Another way to claim that COD tax-free --- a temporary exception, which was supposed to be a temporary solution, was implemented years ago and then repeatedly extended by Congress applies to COD income from qualifying cancellations of home mortgage debts that occur through 2025. Under the current rules for this exception, the borrower can have up to $750,000 of federal-income-tax-free COD income—or $375,000 if the borrower uses married-filing-separately status—from the cancellation of qualified principal residence indebtedness. That means debt that was used to acquire, build, or improve the borrower’s principal residence and that is secured by that residence. Note that the above exception is very specific – as stated above – this That means debt that was used to acquire, build, or improve the borrower’s principal residence and that is secured by that residence. If you have found yourself with a cancellation of debt issue, and want to find the way out, call us today at 630-278-5023 to set up your complimentary consultation. Our certified tax planner and tax coach will help set up a plan that can save thousands of dollars a year by pro-actively creating a tax plan that will eliminate tax debt.
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