Windsor Locks, CT Real Estate News

By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
When you owe money to the IRS, it is hard to think about anything else. While being in debt is never fun, no matter who the creditor is, the IRS enjoys almost unlimited power to collect the money they are due.Unlike your mortgage lender or credit card company, the Internal Revenue Service has the power to attach your wages, raid your bank account and even take your freedom. No other creditor even comes close in terms of its power and influence and taking on the agency on your own could be asking for trouble. If you have received a notice from the IRS, you need to act fast, and you need the right assistance in your corner. Taking on the IRS requires specific expertise, and that is why it is so important to work with a quality tax resolution company. Here are seven reasons why working wit...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
 If you owe back taxes to the IRS, some amount of panic is understandable. After all, the Internal Revenue Service has the power of the federal government in its corner, something no other debt collector can claim. They are considered the most brutal collection agency on the planet. It is easy to freeze up and just do nothing when you owe back taxes to the IRS, but hiding from, or doing nothing about your tax debt will not make it go away. In fact, ignoring the taxes you owe will only make the situation worse, since interest and penalties can really add up. You also risk having your paycheck garnished (the IRS does not need a court order to do this) or your bank account levied. The IRS can also file a Notice of Federal Tax Lien making it all but impossible to obtain financing for a car ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
 Tax returns can be complicated and tricky to understand. Even for a professional, it can be surprisingly difficult to get every number and detail right. Often, you only notice the mistakes when you take a casual look at your return days after you submit it online or drop it in the mailbox. Or worse, the IRS sends you a letter telling you something is off.So, is there anything that you can do after your return is in?Actually, there's a lot that you can do. But if you don’t know where to start, it’s best to leave it to a professional. Our tax resolution specialists can navigate the IRS maze so that you have nothing to worry about. We help people who owe back taxes or have back tax debt. Call us today for a free consultation. 3 Major Types Of MistakesThere are many red flags the IRS looks...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
A growing number of people are leaving the world of traditional employment behind. These are the folks who are opening their own small businesses. The people who are embracing freelancing. And the men and women who are using gig work to make a good income.As this trend continues, many of those newly self-employed individuals are finding themselves at a loss, especially when tax season rolls around. One of the worst feelings is working so hard throughout the year, only to get blindsided by a huge tax bill you weren’t ready for.While traditional employees can rely on the companies they work for to withhold taxes and report their earnings to the IRS, the self-employed are expected to complete these actions on their own.To make matters worse, the self-employed often pay higher taxes than th...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
If you are running a small business, you have an unwanted, not so silent partner that will dig into your pocket every year: the IRS.The IRS wants to know what you are doing, how much you are earning and most importantly how much you are paying in taxes. And the tax agency is becoming increasingly aggressive in this regard. While the audit rate for individual returns has been hovering at far less than 1%, the audit rate for small businesses can be as much as 10 times higher.The IRS is watching what you do, and if they think you are not paying your fair share they will certainly come calling. When that demand letter from the IRS arrives, knowing what to do next can make all the difference, and the more you educate yourself the easier it will be to deal with, and eliminate, the tax debt.No...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
So many of us dread the April 15 tax filing deadline. The U.S. tax code contains more words than the Bible and hundreds of pages of new rules and regulations are often added. With so much complexity, it is no wonder so many of us put off filing our taxes until the last possible minute, but taking that approach introduces its own stresses and can potentially land you in hot water with the IRS.   What if you do not get it done on time? You can file for an extension, but you are still required to pay the taxes you owe plus penalties and interest.   How do you know you didn't make a mistake with your last minute tax filing? Something as simple as a mathematical error could increase the odds of an audit and put you in the crosshairs of the IRS.   We specialize in helping people who owe $10,...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
  The old saying that nothing is certain in life except death and taxes has never been truer, or more frightening. In the current environment, fear of the IRS is creeping in, and nothing will get your heart racing quite as fast as opening the mailbox and finding a letter from the tax agency.   When the IRS comes calling, you might think that there is nothing you can do. You may worry that you will have to liquidate your assets, sell your car, or even put your home on the market to afford what the IRS says you owe. The good news is that you may not have to pay that total amount, and before you write that big check you should check out the alternatives first.   The IRS understands taxpayers fall behind on their taxes, and they have programs in place that can reduce the amount you owe or ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
  Opening the mailbox and finding a letter from the IRS is frightening, but what happens next can be even scarier. The tax agency wields incredible power, and if they claim you owe additional taxes they have many different options for forcing you to pay.   When the IRS claims you owe additional money, they will act quickly, and that could leave you reeling, and trying hard to preserve the money you need to pay your bills, feed your family and keep a roof over your head. If you are employed, the IRS can reach into your paycheck, forcing the company you work for to withhold part of what you are owed until the tax debt has been satisfied.   The IRS can also hold onto any refunds and government payments you would otherwise be due. If you have been waiting for that big fat refund check to a...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
It is hard to beat the freedom and flexibility of freelancing and gig work. When you work for yourself, you can set your own hours, turn your home into an office and even ditch the daily commute. As a small business owner, I understand the desire to be your own boss.All that is great, but there is one thing about freelancing that is much less pleasant. Compared to their corporate counterparts, self-employed individuals face an additional tax burden, an expense that takes many of them by surprise.Note: If you end up falling behind on your taxes and the IRS or state claim you owe $10,000 or more, reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation.If you love the freedom of gig work but not the big tax bill, you need to think ahead. A li...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Tax season can be a stressful time, especially for freelancers who might owe taxes at the end of the year. It can be overwhelming to look at the tax debt you owe from the profits you have made. Our firm specializes in tax resolution and helping people who owe the IRS or state $10,000 or more. We’ve seen small business owners and freelancers get blindsided every year by a huge tax bill and often falling behind on their taxes for years on end. If that’s you, we can help. Contact us to discuss your tax debt settlement options.  So, if you're worried about how you're going to pay your tax bill this year, try to relax. There are a wide variety of legitimate deductions you can utilize as a freelancer to bring your tax liability down. We encourage you to talk to a tax professional to see if an...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
  The holidays are here. Not to be a grinch but right around the corner is a less fondly anticipated time of year. Before you know it, you will be taking down the Christmas tree, pulling down the holiday lights and getting ready for the tax season to come. Just like the holidays, tax season requires lots of preparation and planning, and if you want to be ready, you need to start early.   Why am I writing this article? It's not to spoil your holiday cheer, it's because we've seen what it's like when you're not prepared. We help people who fall behind on their taxes and owe the IRS tens of thousands of dollars in back taxes, and it's often because they simply failed to prepare and they procrastinate on their taxes.   If you do get in trouble with the IRS and they claim you owe $10,000 or...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Operation Hidden Treasure: Cryptocurrency and the IRS Cryptocurrency has become an incredibly popular way to invest, but the tax side of this virtual coin can be difficult to navigate. The IRS vacillated its stance on cryptocurrency, throughout the years, making it confusing even for the most diligent investors.In March of 2021, the IRS announced Operation Hidden Treasure, this initiative is “focused on taxpayers who omit cryptocurrency income from their tax returns” (Forbes). If you've bought and/or sold cryptocurrency recently, it's important to declare your crypto correctly on your tax forms to avoid fraud and evasion charges. Before we jump into it, if you know you owe IRS back taxes on your crypto gains, it's important to reach out to a tax resolution firm like ours who is skilled ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Each year, many taxpayers choose to prepare their own tax returns. This can be an easy way to save a few hundred dollars but, it’s important to watch out for common tax filing mistakes. Tax preparation software makes some errors like addition and subtraction blunders less likely, but even the best software cannot eliminate all potential problems and human error.  If you are getting ready to file your tax return, be sure to take a second (or third) look before you hit send. Keeping a close eye out for these common tax filing mistakes is the best way to ensure the IRS does not come knocking at your door. Note: If you do get in trouble with the IRS and they claim you owe $10,o00 or more, reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Which Tax Records to Keep and For How Long. Do This and Avoid Tax Problems Later. Whether you are expecting a nice tax refund or preparing to write a big scary check, you know that April 15 is the annual tax filing deadline. What you may not know, however, is that Tax Day is every day at the IRS, and the tax agency is always reviewing the information taxpayers and business owners have provided.  That means that keeping tax records is about more than just smart bookkeeping - it is an integral form of self-protection. You see, millions of Americans get letters from the IRS stating they owe back taxes or requesting more information about their tax returns. It may be disconcerting, but the IRS has the right to request additional information months, or even years, after the return you filed ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Few things are as frightening as opening the mailbox and finding a letter from the IRS, especially when you know you owe them money. The much feared tax agency does not contact taxpayers just to say hello; receiving communication from them is not likely to be good news.   When your heart stops pounding and you get the courage to open the letter, you get another shock - in the form of a large amount due, one you cannot possibly afford. So what do you do, and how do you react?   The steps you take next could make all the difference, and here are some immediate actions you need to complete right away.     Step #1 - Stop Panicking, Take Action If you owe back taxes, our firm can help negotiate with the IRS and potentially settle your tax debt. Call us today. Our tax resolution specialists ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
No one wants to be on the bad side of the IRS, yet that is where millions of taxpayers find themselves each and every year. As enforcement efforts ramp up at the IRS, the number of letters landing in mailboxes is continuing to increase and one of them could be heading your way. If you do receive a notice from the IRS, it is important to act fast, especially if you cannot afford to pay what the IRS says you owe. You may be tempted to do nothing or ignore the situation, but every day  you wait will just make an already bad situation that much worse. The good news is you may not have to pay what the IRS says you owe! There are a number of programs designed to give taxpayers relief, in many cases allowing them to settle their tax debts for much less. But before you can enjoy that financial ...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
The rise of freelancing, self-employed and gig work is one of the biggest labor stories of the last 20 years. More and more workers have been looking beyond the normal nine to five and making their own way in the world, creating an income they can rely on, one that is directly tied to their skills and abilities. COVID-19 only accelerated this trend.  Working as a freelancer or gig worker can also open a world of tax savings possibilities. From retirement plans with generous contribution limits to health savings accounts to cover the high cost of private insurance to the ability to write off office supplies and other essentials, this class of workers enjoys some truly phenomenal tax breaks. Generous Deduction or Audit Trap?One of the most generous of those tax breaks is also one of the m...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
People often dream of quitting their jobs and going into business for themselves so that they can pursue a passion and work without a boss. Self-employment can be a rewarding career decision, but it can lead to higher taxes and tax returns that are more complex that what you initially bargained for.  If you’re self-employed, it is important to understand how taxes work so you can avoid making a mistake and owing more than your fair share of taxes.  Note: If you owe back taxes and need tax relief, our firm can help! We specialize in resolving complicated self-employed and small business back tax problems. Contact our firm today!   Definition of Self-Employment The IRS considers you to be self-employed if you work as a contractor, freelancer, small business owner or are otherwise in busin...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
If you took on a side hustle last year to make ends meet and earn some extra cash, you may have found a surprise when you filed your taxes. If you did not prepare carefully, you probably ended up with a big tax bill for your troubles, possibly with penalties and interest added on. Given the unpleasant surprises of the past, you may be resigned to a life of higher taxes, all courtesy of the very side hustle you thought would help you gain financial freedom. But before you put away your driving gloves and give up on ride sharing and grocery delivery, you might want to take a second look at your situation. With the right planning and preparation, your side hustle could actually lower your tax bill, giving you an even bigger reason to keep driving, door dashing and doing whatever it takes t...
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By Joseph Orabona, Your defense against the IRS
(Vector Tax & Accounting LLC)
Proper tax planning is a year-round proposition. You cannot afford to wait until April to start planning your taxes and assessing your tax liability.   Knowing which factors can raise your taxes is one of the best ways to keep more money in your pocket. These five factors can unexpectedly raise your taxes owed at the end of the year.   Note: If you owe back taxes, our firm can help negotiate with the IRS and potentially settle your tax debt. Call us today. Our tax resolution specialists can navigate the IRS maze so that you have nothing to worry about.     #1 - Cashing in Your Retirement Plan There are many reasons not to cash in your retirement plan early, but the tax penalty is one of the biggest ones. If you take the proceeds from your 401(k) plan in cash instead of rolling it over ...
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