Tax Preparation in Oxnard California Archives

Closeup of a man talking on the phone illustrates blog "Scammers Impersonating the IRS on the Phone: What You Need To Know"

What You Need To Know About Scammers Impersonating the IRS on the Phone

September 28, 2023

The Internal Revenue Service (IRS) is the federal agency responsible for administering and enforcing the nation’s tax laws. Unfortunately, scammers and fraudsters have found a way to exploit the agency’s reputation and use it to perpetrate fraud schemes. Here’s what you need to know about this scheme.

How IRS Phone Scams Work

Scammers use different tactics to defraud taxpayers, but the most common method is to mimic the IRS. They call unsuspecting victims, often telling them they owe back taxes or claiming there is an issue with their tax return.

The scammer then demands immediate payment or threatens legal action, including arrest, deportation, or revocation of their driver’s license.

They may also ask for personal or financial information to “verify” the target’s identity or eligibility for a refund. These calls often use scare tactics or urgency to get the victim to act quickly without verifying the validity of the caller or the information provided.

How To Spot an IRS Phone Scam

Knowing the red flags of a scam call can help you avoid becoming a victim. Some common signs of an IRS phone scam include:

A caller who demands immediate payment over the phone or threatens legal action.
A caller who uses aggressive or abusive language, or speaks in a robotic or scripted tone.
A caller who claims to be from the IRS but doesn’t know your name or other personal details.
A caller who asks for sensitive information, such as your Social Security number, bank account number, or credit card information.
A caller who asks you to transfer money or buy gift cards or other prepaid cards.

What To Do if You Receive an IRS Phone Scam Call

If you receive a call from someone who claims to be from the IRS and you suspect it’s a fraudulent call, don’t panic or engage with the caller. Here are some steps you can take to protect yourself:

Hang up immediately
Don’t give out any personal information
Don’t make any payment or transfer money
If possible, note the caller ID information or the number the caller used
Report the call to the IRS and the Federal Trade Commission (FTC)
How to report an IRS phone scam

Reporting IRS phone scams is essential to help law enforcement catch the perpetrators and prevent them from defrauding others.

If you think you’ve been targeted by an IRS phone scam, report it to the IRS by email at phishing@irs.gov (Subject: IRS Phone Scam). Make sure to include the number of the caller, any phone number you are instructed to call, and a brief description of the communication.

JT Tax Services: Taxes Made Easy

When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and regulations.We are located in Oxnard, California, contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services. Feel free to contact us today!

Understanding Double Taxation: What It Is and How It Affects You

By: UNIKO Media Group

September 20, 2023

If you’re a business owner or an employee of a company, you have probably heard of the term “double taxation.” It can be a confusing and complex concept to grasp, but understanding it is crucial, especially when it comes to handling taxes.

What Is Double Taxation?

Simply put, double taxation refers to the imposition of two or more tax obligations on the same income, asset, or financial transaction.

This can happen in several situations; one of the most common is when a business earns profits, and the earnings are taxed at both the corporate and personal levels. In other words, the profit generated by the company is taxed at the corporate level, and the dividends paid to shareholders are subject to personal taxes.

Another situation where double taxation occurs is in international trade. When a foreign company does business in a particular country, the profits they make are taxed in both the country of origin and the country where they operate.

Double Taxation: What You Need To Keep in Mind

Double taxation may seem unfair, but it is standard practice in many countries. The US, for example, is known to have one of the highest corporate tax rates globally, which makes it essential for businesses to consider double taxation when planning their investments.

To avoid double taxation, several strategies can be employed. For businesses, choosing a legal entity, such as a partnership or a limited liability company (LLC), can help lower the tax burden.

For individuals, it’s essential to take advantage of any tax allowances or credits that may apply.

Wrapping It Up

In summary, double taxation is a complex issue that can affect both businesses and individuals.

Understanding the basics of double taxation and implementing strategies to reduce the tax burden can help businesses and individuals stay compliant while maximizing their tax savings.

So it’s crucial to seek the advice of a tax professional who can help navigate through different tax jurisdictions and ensure you comply with all relevant tax laws.

JT Tax Services: Taxes Made Easy

What Is a Limited Liability Company (LLC)?

By: UNIKO Media Group

September 12, 2023

One of the most popular business structures, especially for small business owners, is a Limited Liability Company, or LLC for short. If you’re unfamiliar with what an LLC is or how it operates, don’t worry! This guide will provide you with a comprehensive overview of what an LLC is, how it works, and why it might be the right option for your business.

What is an LLC?

A limited liability company, or LLC, is a legal structure that combines the benefits of a partnership or sole proprietorship with those of a corporation.

Essentially, it’s a way to structure your business that offers both personal liability protection and flexibility.

By forming an LLC, you are creating a separate legal entity that can own property, enter into contracts, and conduct business.

However, unlike corporations, there are no shareholders or boards of directors to answer to – instead, owners of an LLC are referred to as members and can manage the company themselves.

How does an LLC work?

To form an LLC, you will need to file paperwork with your state’s Secretary of State and pay a registration fee.

Typically, this involves providing basic information about your company, such as its name, address, and the names of its members.

Once your LLC is registered, you’ll need to draft an operating agreement, which outlines how the business will be run, how profits and losses will be divided among members, and other important information.

An LLC is typically taxed as a pass-through entity, meaning that the profits and losses are reported on the individual tax returns of members and not at the business level.

Why choose an LLC?

There are several benefits to choosing an LLC as your business structure.

One of the most significant advantages is that LLCs provide personal liability protection to their owners. This means that if your business is sued or incurs debt, your personal assets (such as your home or car) cannot be used to satisfy those debts.

Additionally, LLCs offer flexibility in terms of management structure, and there are typically fewer formalities required than with a corporation. This means that you can operate your business more informally while still enjoying the legal benefits of being a separate entity.

LLCs: What You Need To Keep in Mind

While LLCs offer many benefits, there are also some potential drawbacks to consider.

One of the most notable is that LLCs can be more expensive to form and maintain than sole proprietorships or partnerships.

Additionally, the process of forming an LLC can be complex, and it may be beneficial to work with a lawyer or tax professional to ensure that you’re complying with all applicable laws and regulations.

Finally, while LLCs provide personal liability protection, there are limits. For example, members can still be held personally liable if they engage in fraudulent or illegal activities on behalf of the company.

Wrapping It Up

Overall, a Limited Liability Company is a popular legal structure for entrepreneurs looking to start a business.

It offers personal liability protection, flexibility, and a relatively easy process to set up and maintain.

However, there are also some potential drawbacks to consider, such as the cost of formation and maintenance.

By understanding how an LLC works and weighing the pros and cons, you can make an informed decision about whether it’s the right structure for your business.

JT Tax Services: Taxes Made Easy

We are located in Oxnard, California, contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services. Feel free to contact us today!

What Is a C Corporation and How Does It Work?

By: UNIKO Media Group

September 8, 2023

When starting a new business, it’s important to choose the right structure for your company. One popular option is a C Corporation. But what are they, exactly? Read on to learn more about C corporations, from a basic definition to their pros and cons.

Definition of a C Corporation

A C Corporation is a type of business structure in which the company is owned by shareholders who have limited liability for the company’s debts and obligations.

The corporation operates as a separate legal entity that can conduct business, own assets, and enter into contracts.

This means that the corporation can sue and be sued, enter into agreements, and pay taxes separately from its owners.

How a C Corporation Works

A C Corporation is managed by a board of directors who are elected by the shareholders.

The board of directors is responsible for making major business decisions, such as choosing the company’s officers, approving budgets, and setting corporate policies. The officers of the corporation, such as the CEO and CFO, are responsible for the day-to-day operations of the business.

C Corporations issue stock to shareholders, which represents their ownership in the business. Shareholders are not involved in the day-to-day operations of the business and do not have liability for the debts and obligations of the corporation.

Advantages of a C Corporation

One of the main advantages of a C Corporation is that it offers limited liability to its shareholders.

This means that the personal assets of the shareholders are protected from the corporation’s debts and obligations. Additionally, the corporation can raise capital by issuing stock to investors, which can help the business grow and expand.

Another advantage of a C Corporation is that it can deduct certain business expenses, such as salaries, benefits, and property taxes. This can help reduce the company’s tax liability and increase its profits.

Disadvantages of a C Corporation

One of the main disadvantages of a C Corporation is that it is subject to double taxation. This means that the corporation pays taxes on its profits, and then the shareholders pay taxes on any dividends they receive. This can result in a higher overall tax liability for the company and its shareholders.

Another disadvantage of a C Corporation is that it requires more formalities and paperwork than other business structures, such as a sole proprietorship or partnership. This can result in higher administrative costs and more time spent on compliance.

JT Tax Services: Taxes Made Easy

Can IRS Decisions Be Appealed?

By: UNIKO Media Group

June 15, 2023

As everyone knows, taxes are important as they help finance public service and infrastructure. However, does that mean that IRS decisions are set in stone? In today’s blog we explain whether IRS decisions can be appealed. Keep reading to learn more.

Can IRS Decisions Be Appealed?

If you disagree with a decision made by the IRS, you may be wondering whether you have the right to appeal. The answer is yes, taxpayers have the right to appeal decisions made by the IRS.

According to the IRS, appealing is an option when all the following conditions apply:

You received a letter from the IRS explaining your right to appeal the IRS’s decision
You do not agree with the IRS’s decision
You are not signing an agreement form sent to you

What To Expect When You Appeal a Decision by the IRS

If you want to appeal a decision made by the IRS, the first thing to do is to write a letter to request an appeal and mail it to the IRS address on the letter you received with your appeal rights.

It is important to use the address on the letter you received, not the general IRS address. By keeping this in mind, you’ll avoid unnecessary delays.

Once your request is with the Appeals section of the IRS, an Appeals officer will get in touch with you within 45 days by mail to schedule an informal conference to review the taxpayer’s situation. You may choose to attend the conference in person, by phone or by video.

If more than 120 days go by after filing your request and you don’t hear from the IRS, you can contact the agency and ask for a status update.

Once the conference takes place, the Appeals officer will discuss your case with you. They will also outline the reasons for their decision as well as your options. Any Appeals conference has three possible outcomes:

In the IRS’s favor
In the taxpayer’s favor (that is, in your favor)
Compromise (for example, the appeals officer may recommend a settlement when you pay only a portion of the taxes you owe)

Wrapping It Up

In conclusion, while it is possible to appeal an IRS decision, it is important to follow the proper procedures and seek professional guidance if necessary.

By taking the appropriate steps and knowing what the process looks like, you can protect your rights and ensure that your tax issues are resolved in a fair and efficient manner.

JT Tax Services: Taxes Made Easy

How Long Will It Take for the IRS to Process My Amended Return?

By: UNIKO Media Group

June 1, 2023

If you had to amend your tax return, chances are that you are wondering how long it will take for the IRS to process it. Well, wonder no more, because in today’s post we give you the inside scoop on this useful tax topic.

What Is an Amended Return?

First, let’s understand what an amended return is and why you might need to amend your tax return in the first place.

Simply put, an amended return is a tax return you file to correct errors in a previously filed tax return.

Some common reasons to amend your return include mistakes in reporting your income, or inaccuracies in deductions, credits, or filing status.

How Long Will It Take for the IRS to Process My Amended Return?

The duration of time it takes for the IRS to process your amended return and issue depends on several factors.

For example, the previous estimated time to process an amended return was 16 weeks. However, under the current circumstances, the IRS estimates that it takes more than 20 weeks to process an amended return, regardless of whether you file electronically or on paper.

The reason is that, according to the agency’s information, the IRS has 1.43 million unprocessed 1040-X Forms which are being processed in the order they were received.

We know: 20 weeks is a long time. However, you can check the status of your amended return using the tool Where’s My Amended Return on the IRS website. Note that it can take up to three weeks after you mail or file your amended return electronically for it to show up on the system.

For more tax tips, be sure to check out our previous blogs: “Filing Status: What Is It And Why It Matters?” and “How To Organize Your Tax Records”

JT Tax Services: Taxes Made Easy

Tax Filing Tips for Small Businesses

By: UNIKO Media Group

March 27, 2023

For many small business owners, tax season may seem like a daunting task. The rules and regulations surrounding taxes can be overwhelming and intimidating. But with the right information and preparation, filing taxes doesn’t have to be a headache. Keep reading to learn some helpful tips for small business owners so you can file your taxes with confidence!

Start Early

When it comes to your taxes, it’s never too early to start preparing. By getting a head start on your taxes, you’ll have plenty of time to make sure you’re taking advantage of all available deductions and credits that could save you money. Plus, if there’s an issue or mistake on your return, you’ll have plenty of time to resolve it before the deadline.

Take Advantage of All Available Deductions

One of the most important things small business owners should do is take full advantage of all available deductions and credits. This means researching what types of expenses are deductible as well as which tax credits can help reduce your overall tax burden

There are also numerous tax credits available for businesses. Get in touch with a tax professional to discover how to best take advantage of all these opportunities.

Keep Accurate Records

Wait! Before you can take full advantage of the deductions available to you, it’s essential to keep accurate records throughout the year — not just during tax season!

This will ensure that you don’t miss out on any potential deductions when filing your return. Make sure you accurately track each expense throughout the year so that you don’t end up paying more than it’s necessary when filing your return.

Work With a Tax Pro

If you feel that taxes are just too tricky for you, consider hiring a professional accountant or tax preparer who can help make sense of all the paperwork and regulations associated with filing a business return correctly and on time each year – especially if you’re dealing with state-level taxation issues in addition to Federal ones!

A tax pro not only can help ensure that everything is filed correctly but they’ll also be able to provide helpful advice about how best to structure your finances going forward so that next year’s return isn’t nearly as painful!

JT Tax Services Is Here To Answer Your Tax Questions

Will Tax Refunds Be Bigger in 2023?

By: UNIKO Media Group

January 25, 2023

Tax season 2023 has officially started, and with it come all types of questions. For example, will tax refunds be bigger in 2023? In today’s blog post, we answer this question and provide some useful tips for the filing season.

Will Tax Refunds Be Bigger in 2023?

Unfortunately, the answer is no: it is unlikely that your tax return will be bigger in 2023 than in the last two years. One of the main reasons is that there were no Economic Impact Payments for 2022

Additionally, some tax credits (such as the child tax credit) that were extended to offer economic relief during the pandemic have reverted to their 2019 levels.

To sum it up, many of the tax incentives that were deployed over the last two years to help Americans deal with the impact of COVID-19 are being rolled back. For many taxpayers, this return to normal will translate into a smaller tax refund in 2023.

Regardless of the size of your return, there are some things you can do speed up the process:

File as early as possible (while making sure that all the information in your return is accurate)
File electronically
Choose direct deposit for your tax refund

What You Need To Keep in Mind

Federal tax season 2023 began on January 23. The deadline to file your federal taxes this year is April 18, 2023

However the IRS has given victims of the storms that hit California an extended May 15 deadline to file federal individual and business tax returns and make the related tax payments.

If you need help filing your tax return, contact JT Tax Services. Our team will answer all your questions and ensure that you get your maximum tax refund.

For more tips on how to navigate the 2023 tax season, check out our previous blog “Reminder: Tax Season Begins January 2023.”

Have Questions? at JT Tax Services, We Have Answers

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

California Storms: IRS Extends Tax Deadline for Victims

By: UNIKO Media Group

January 10, 2023

In view of the relentless storms affecting California, the IRS has announced that it will offer tax relief to the victims by extending to May 15, 2023, the deadline to file federal individual and business tax returns and make the related tax payments.

IRS Extends Tax Deadline for California Storm Victims

The massive storms sweeping through California have caused the IRS to offer tax relief to the victims, who will now have until May 15, 2023, to file federal individual and business tax returns and make the related tax payments.

The original deadline for federal individual tax returns and payments was April 18, 2023.

The extended deadline will apply to all the individuals and households that live or have a business in any area designated by the Federal Emergency Management Agency (FEMA). The current list of counties that can take advantage of this tax relief include the following counties:

Colusa	San Diego
El Dorado	San Joaquin
Glenn	San Luis Obispo
Humboldt	San Mateo
Los Angeles	Santa Barbara
Marin	Santa Clara
Mariposa	Santa Cruz
Mendocino	Solano
Merced	Sonoma
Monterey	Stanislaus
Napa	Sutter
Orange	Tehama
Placer	Ventura
Riverside	Yolo
Sacramento	Yuba
San Bernardino

Other localities added later to the disaster area will also qualify for the same tax relief. You can check the updated list on the section Tax Relief in Disaster Situations on the IRS website.

It’s worth noting that farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until May 15, 2023, to file their 2022 return and pay any tax due.

Additionally, The May 15, 2023, deadline also applies to the quarterly estimated tax payments, normally due on January 17, 2023, and April 18, 2023. This means that individual taxpayers can skip making the fourth quarter estimated tax payment, normally due January 17, 2023, and instead include it with the 2022 return they file, on or before May 15.

Have Questions? at JT Tax Services, We Have Answers

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

Charitable Donations and Taxes: What You Need To Know

By: UNIKO Media Group

December 21, 2022

Christmas is a time of giving, so chances are good that you are considering making a donation to lighten up someone’s Christmas. If that’s the case, read on to discover some useful tax tips to keep in mind this holiday season.

Charitable Donations and Taxes: What You Need To Know

First things first: remember that in order to claim a deduction on your 2022 tax return, you must donate to a tax-exempt organization by December 31 2022.

Another important point to consider is that, in general, you can only deduct charitable contributions if you itemize deductions on schedule A (although an exception was made for 2021 returns).

While most charitable tax donations qualify for the deduction, there are some exceptions. For example, donations that are not tax deductible include those:

Made to a supporting organization
Intended to help establish or maintain a donor advised fund
Carried forward from prior years
Made to most private foundations
Made to charitable remainder trusts

A charity must have something known as 501(c)3 status if you want to deduct your donation on your federal tax return. You can check an organization’s 501(c)3 status by using the IRS’ Tax Exempt Organization Search tool.

For most people, making a donation means donating funds. However, If you donate property other than cash, you may generally deduct the fair market value of the property.

It’s also worth noting that the term “cash” doesn’t refer to physical money only. For tax purposes, cash contributions include those made by check, credit card or debit card as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization.

If you need help making sense of charitable donations and how to claim them on your tax return, feel free to contact our experts. We’ll be happy to offer assistance and answer all your questions.

Have Tax Questions? At JT Tax Services, We’ve Got Answers

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.