Tax Musings of a Burbank CPA: What is Tax Freedom Day and Why is it Celebrated?

You may not have known that last Sunday,  April 24 was Tax Freedom Day.  And what is Tax Freedom Day and why is it different almost every year? Tax Freedom Day is the day that  Americans have paid all their Federal, State, County, City and Business taxes and are finally earning money for themselves.  See this article in Tax Foundation for more information on this important non-holiday holiday: http://taxfoundation.org/article/tax-freedom-day-2016-april-24 Tax Freedom Day gives us an idea of how much we actually work each year just to pay taxes.  Maybe that will get enough people to try and keep taxes low so we have more money for ourselves instead of using it to pay for government.  For financial,  accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net  Phone: 818-317-6035   Website: www.briantstonercpa.com AWARDED BEST ACCOUNTANT IN BURBANK, CA BY BEST BUSINESSES 2014 AND 2015!!   Android and the IPhone:    Has been Featured On   https://twitter.com/bstonercpa

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Tax Musings of a Burbank CPA: What Does It Really Mean When The IRS Calls You.

I have heard this from clients, associates, even my wife – “The IRS called us today saying we owe taxes – what do we do?” Here is the scoop direct from the IRS. The IRS will never call or email you requesting money or threatening to send the sheriff if you don’t pay.  They don’t ask for debit cards or other forms of untraceable payments to pay the ‘tax bill.’  The IRS sends you a certified letter if they feel you owe something and give you a chance to appeal the finding before even sending a bill. The only time I know of that they do phone you is to return a call, usually regarding setting an examination date for you.  They only email if you are on one of their email information subscription lists.  This also goes for the Franchise Tax Board in California, other state tax agencies and utility companies.  They will not call or email you; they will send you a bill with a chance to dispute it, not threaten to have you arrested.  These scams have been going on for two years, now.  Just remember if the IRS calls, just hang up the phone.    For [...]

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Tax Musings of a Burbank CPA: How the East Coast Holiday Schedule Affects When You File Your Taxes This Year.

Bet you didn’t know that a holiday only celebrated back east will result in you having an additional three days to file your federal income tax return. Emancipation Day (celebrating Lincoln signing the Compensated Emancipation Act freeing over 3,000 slaves in the District of Columbia on April 16, 1862) is a holiday in DC, which makes it an IRS holiday as well.  Normally this doesn’t affect income tax filing, except when April 16 falls on a Saturday.  Then the Friday before (April 15) is the holiday, meaning taxes are not due until the following Monday on April 18, giving you three more days to put off filing your taxes. Wait, there’s more.  If you live in Massachusetts or Maine you have a state holiday called Patriot’s Day on the third Monday in April celebrating the first series of battles against the British at Lexington and Concord on April 19, 1775.  If the third Monday in April is tax day then it is extended one more day, so people living in Massachusetts and Maine have until April 19 this year to file their taxes.  I hope you enjoyed your little history lesson on trying to figure out when you have to [...]

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