rs-complex-tax-preparation Archives

What Happens When You File a Return With a Balance Due

April 23, 2026July 17, 2020 by Brotman Law

Now, I want to talk about what happens when you file a tax return with a balance due. You go to file your tax or you have your CPA file your taxes. These taxes gets transmitted to the IRS and they go to a service center. Regardless of whether you paper file or whether you file electronically, that information gets processed in that service center. Tax returns generally are processed on the spot. They take about four to six weeks to work their way through the IRS system. Once you file your tax returns, you can actually expect your balance due won’t appear for four to six weeks. That’s an important thing for non-tax counsel to be aware of because if your client files a return, they’re generally not going to hear from the IRS report for four to six weeks.

Key Takeaways

Now, I want to talk about what happens when you file a tax return with a balance due. You go to file your tax or you have your CPA file your taxes. These taxes gets transmitted to the IRS and they go to a service center.
You’ve got a little bit of grace period if they filed on October 15th and say, “Oh my goodness. I owe $20,000 liability.” You’re going to have about four to six weeks to adequately address the problem before you get correspondence from the IRS.

What Do I Do If I Have Not Filed Taxes for Multiple Years?

April 23, 2026July 16, 2020 by Brotman Law

So the first thing to do when you haven’t filed taxes is you need to get your taxes filed. If you can arrive at how much you owe the government, you can begin fixing the problem. So the first thing you need to do is establish your filing compliance: how many years haven’t you filed, what information do you need to get it filed and then get your returns filed. So in some cases we’ve had situations honestly where clients don’t remember what years they have and have not filed for, so the appropriate solution in those cases is to call the IRS and to do what we refer to as an analysis. An analysis is a comprehensive review of your account to determine what returns you filed, what returns you haven’t filed, what returns the government has filed for you and any other pieces of information that you would need in order to get in to compliance. Like what information does

Key Takeaways

So the first thing to do when you haven’t filed taxes is you need to get your taxes filed. If you can arrive at how much you owe the government, you can begin fixing the problem.
the government have on record for you. In doing the analysis you’re going to start to create a roadmap of everything you need to do to get in filing compliance now.

How to Claim the California Earned Income Tax Credit

April 23, 2026June 26, 2020 by Brotman Law

Key Takeaways

What Is the California Earned Income Tax Credit?
How Does the California EITC Work?
Who Is Eligible for the California Earned Income Tax Credit?
How Much Is the Tax Credit Worth?
How Do You Claim Your California Earned Income Tax Credit?

The first few months of every new year seems to be dragged down by the necessity of preparing tax returns and the feeling of becoming poorer by the minute. To ease some of the federal burden, the IRS created an earned income tax credit that was implemented in 2013.

What to Do If You Miss Your Tax Filing or Tax Extension Deadline

April 23, 2026June 15, 2020 by Brotman Law

Uh oh. It is now after April 15, and you did not file your taxes. What do you do?

Key Takeaways

Take These Steps Immediately
How to Avoid Penalties
More on Extensions
What Happens When You Miss Your Tax Extension Deadline?
You Missed the Deadline. Now, What Do You Do?

What’s the Difference Between Federal and State Business Taxes?

April 23, 2026March 29, 2017 by Brotman Law

Every business pays a variety of taxes to the federal government and the state of California. The type of tax, the structure of the business, and the amount of money received or earned dictates the amount of the tax.

The following post outlines the various taxes collected by the state and federal governments, the tax rates, and how often the taxes must be paid. The information is provided by business structure since that is the main dividing point for finding tax information.

IRS Form 1099: Informational Returns – Part Two

April 23, 2026November 12, 2013 by Brotman Law

Key Takeaways

IRS Form 1099-K
IRS Form 1099-LTC
IRS Form 1099-MISC
IRS Form 1099-OID
IRS Form 1099-PATR

Continued from: IRS Form 1099: Informational Returns – Part One

How to Choose an IRS Tax Return Preparer – Part Two

April 23, 2026September 30, 2013 by Brotman Law

In addition, I wanted to discuss IRS tax return preparers that I will identify as “others.” This would include enrolled agents, bookkeepers, and national tax preparation chains. Let us be clear from the outset: I know several of these individuals who are excellent and who I would trust with my own return (if the need for someone else to prepare my return ever arose). These people often make a great living or have a decent side business from preparing returns and are quite knowledgeable. Experience is the number one thing to look for when choosing an IRS tax return preparer.

Key Takeaways

In addition, I wanted to discuss IRS tax return preparers that I will identify as “others.” This would include enrolled agents, bookkeepers, and national tax preparation chains.
However, I will say that many of these individuals do lack a formal tax education, which is something that I feel has been invaluable to my own tax return preparation practice.
To conclude, I want to give you an additional word of caution. Through my experience as an attorney, I have run into multiple instances of people who were victimized by unscrupulous tax preparers.

How to Choose an IRS Tax Return Preparer – Part One

April 23, 2026September 30, 2013 by Brotman Law

Introduction to Choosing a Tax Return Preparer

Tax return software, although extremely popular, is often only as smart as its user. I have amended numerous returns for individuals who have made serious errors using tax software. These have ranged from a family member missing out on a $2,000 refund due to sales tax deductions they did not report to a client who missed out on over $200,000 due to failing to properly account for net operating losses. It is important not to be pennywise and pound foolish. For anyone with more than a single W-2, who itemizes their deductions, has a Schedule C business, makes stock trades, or has had other complexities in the life that they may believe impacts their tax returns, please, please, please make the investment in order to have a professional tax return preparer prepare your taxes.

Key Takeaways

Tax return software, although extremely popular, is often only as smart as its user. I have amended numerous returns for individuals who have made serious errors using tax software.
With respect to tax return preparers, I also know that not every tax return preparer is created equal.
Also, just because someone is an accountant, does not mean they are qualified to prepare individual tax returns. I know high ranking, Big Four accounting firm partners who do not know the first thing about tax.