PENSACOLAFLTAX.COM
  • Home
  • QuickBooks Accounting
    • Payroll Processing
    • Accounting
    • Bookkeeping
    • QuickBooks Services >
      • QuickBooks Set-up
      • QuickBooks Training
      • QuickBooks Tune-up
      • QuickBooks Hybrid Bookkeeping
    • CFO Services
    • Non-Profit Organizations
    • Security
  • Income Tax Services
    • Virtual Remote Tax Service
    • Business Tax
    • Personal Tax
    • IRS payments and Problem Resolution
  • Blog
  • Contact
  • New Business Formation
  • Q&A
  • Home
  • QuickBooks Accounting
    • Payroll Processing
    • Accounting
    • Bookkeeping
    • QuickBooks Services >
      • QuickBooks Set-up
      • QuickBooks Training
      • QuickBooks Tune-up
      • QuickBooks Hybrid Bookkeeping
    • CFO Services
    • Non-Profit Organizations
    • Security
  • Income Tax Services
    • Virtual Remote Tax Service
    • Business Tax
    • Personal Tax
    • IRS payments and Problem Resolution
  • Blog
  • Contact
  • New Business Formation
  • Q&A
Search by typing & pressing enter

YOUR CART

10/31/2019

Thousands Who Didn’t File Tax Returns May Lose Health Care Subsidies for 2020

Tens of thousands of people with modest incomes are at risk of losing health insurance subsidies in January because they did not file income tax returns, federal officials and consumer advocates say.
Under federal rules, anyone who receives an insurance subsidy must file a tax return to verify that the person was eligible and received the proper amount of financial assistance based on household income.
When the federal insurance marketplace opens for the third enrollment season next Sunday, users will see a new question: “Did your household file a 2014 tax return and reconcile any premium tax credit you used?”
If the answer to that question is no, consumers risk losing the subsidies they receive to help pay premiums. Without such assistance, many would find insurance affordable.

Many of the people potentially affected have incomes so low that they would not otherwise have to file tax returns. But if they received insurance subsidies in 2014, they were required to file this year.
In July, the Internal Revenue Service said 710,000 people who had received subsidies under the Affordable Care Act had not filed tax returns and had not requested more time to do so.
If those people do not return to the marketplace this fall, they may be automatically re-enrolled in the same or similar health plans at full price. And when they receive an invoice from the insurance company next year, they may be shocked to see that their subsidies have been cut to zero.
Erin M. Lackey, 41, of Jacksonville, Vt., was one of many people who received letters from the I.R.S. saying they were at risk of losing their tax credits.
Her mother, Ruth J. O’Hearn, a nurse who helps her daughter with insurance matters, described her own reaction.


“At first, I was angry,” Ms. O’Hearn said. “Then I felt frustration and fear. You can’t be without insurance. Without the subsidy, health insurance would be unaffordable. Without insurance, the cost of medical care would be unaffordable.”
The I.R.S. also said 760,000 taxpayers had received subsidies and filed returns but had not attached the required form comparing the subsidies paid with the amount they were entitled to receive. Taxpayers describe that document, I.R.S. Form 8962, as daunting.
“The premium tax credit form, the dreaded 8962, is really hard,” said Eileen P. Duggan, a piano teacher and freelance writer in Maplewood, Mo., outside St. Louis, who filed the form with her tax return. “It’s enough to make you cry, that form. It was almost impossible to figure out.”

Picture
​The federal government provides subsidies in the form of tax credits, which cover about 70 percent of premiums, on average. The I.R.S. commissioner, John A. Koskinen, said 97 percent of people who received such assistance claimed it in advance, before filing their taxes. The amount of the subsidy is based in part on how much income the recipient expects to have in the coming year.
Two-thirds of people using the federal exchange have incomes less than twice the poverty level (less than $23,540 a year for an individual).
On their tax returns, consumers must compare the tax credits they received based on their projected income with the amount they were legally eligible to receive based on their actual income. If they received more than they were entitled to, they must pay back the excess, and the government can deduct it from their tax refunds.

People who lose their subsidies on Jan. 1 may, in some cases, have them restored if they go to HealthCare.gov, attest to having filed tax returns for 2014, and are found eligible for financial assistance before the open enrollment period ends on Jan. 31. However, if consumers take these steps in the last two weeks of January, their subsidies will not resume until March 1, officials said.
If consumers attest, under penalty of perjury, that they filed their tax returns, and if they select health plans by Dec. 15, they can keep subsidies for coverage starting Jan. 1.


Don't loose your credit for 2020, Current tax returns are required. Mike McVay, Tax Accountant
Past year tax return expert - 850-725-5696
Picture

10/26/2019

Why a Qualified Tax Professional can save you more tax dollars and headaches than Turbo Tax.

Not suitable for handling difficult monetary situations – For people who own a business in which a number of transactions take place every day, hiring the services of an accountant will be a better option.

Lacks human touch- When you hire the services of a tax professional, you can ask him or her further questions related to future tax planning whereas Turbo Tax software cannot offer such information. McVay is among the leading tax professionals in the Pensacola, FL area offering tax preparation services to business ventures all over the local area. These services are meant for enabling the business organizations to concentrate on their core activities, reduce costs and maximize profits. 
Picture
Picture
The Cons of using Turbo Tax:
  • Turbo Tax may look easy, however the set-up, questions the software require will set you back many hours of hard work. 
  • Studies show that I.R.S focuses on individuals using cheap software when they select people for an audit. did you know when you e-file your taxes that the I.R.S has special header codes alerting them if this is a paid registered preparer with the I.R.S. or if you used a certain tax product to prepare your own taxes. 
  • Online help or live CPA with turbo tax is not always helpful. Most the online help leaves the taxpayer to decide the proper tax circumstance and is all based on the individual's interpretation of the advise. Most CPA's on the live help are very reluctant to give actual advice as they are bound by state laws and also legal liability if they give advice that may not totally match your situation. 
  • Turbo Tax does not compensate for incorrect answers or advice. Tax Professionals made sure they advise you properly and will take care of any issues and most of the time any penalties that they may have caused. 
  • Surveys show that most taxpayers being audited after using Turbo Tax had to pay back some of their refunds and that includes penalties. 

Why Hire a Tax Professional?
  • It can save you money. ...
  • It saves you time. ...
  • Tax professionals can answer your questions and resolve issues. ...
  • The tax code is very complicated. ...
  • You gain peace of mind. ...
  • Making mistakes can be very costly. ...
  • You benefit with money-saving tax planning. ...
  • Your previous returns can be also reviewed.
Mike McVay, Tax Professional 
5336 N Blue Angel Pkwy
Pensacola, FL 32526
850-725-5696
Mike@MikeMcVay.com


10/19/2019

No Money to Pay the IRS – Facing Personal or Business Hardship?

See if you qualify for IRS hardship relief
​ (including Fresh Start Program)
FREE CONSULTATION
Have you received an I.R.S. Letter? 

Picture
3 Things You Should Do Immediately When The IRS Sends You “Notice of Intent to Levy”
​McVay Voted Best Tax Accountant in Pensacola for I.R.S.Tax Issues and
​Past Year Tax Return Filing Specialist.
The IRS sends you several notices before they actually seize your assets. The last one is a Final Notice Of Intent To Levy and Notice of Your Right to a Hearing which means your time is about to run out before your bank account can be levied by the IRS! The IRS can also garnish your wages or take other drastic collection action against you. The word “levy” means involuntary seizure or taking.

It’s a little confusing to tell when the IRS is about to seize assets because the second to last notice is also called Notice of Intent to Levy but it doesn’t advise you of your right to a hearing. This notice does not give the IRS the authority to take your assets like the last one.
​
Normally you will get a series of five notices from the IRS before seizure of assets can take place. Only the last notice
The law requires the IRS to give proper notice before that can levy your bank account: According to Internal Revenue Code Section 6330, the IRS is required to notify you in writing before levying, and include in that notice information telling you about your right to appeal this threatened collection action within 30 days. The second to last letter, also called Notice of Intent to Levy does not contain this notice of your right to appeal. Here is a link to the IRS website that explains what notice the IRS must give before levying.
The good news, as mentioned above, is that normally the IRS sends you five letters (five for individuals and four for businesses) before actually seizing your assets. These notices are about five weeks apart so that you have at least four or five months to prepare for the final notice. You should not be surprised when the day comes for you to take action to prevent drastic consequences from IRS collection activity. Here are the collection letters the IRS mails to individuals:
  1. CP14 (Notice of unpaid taxes)
  2. CP501 (Reminder of unpaid taxes)
  3. CP503 (Second reminder of unpaid taxes)
  4. CP504 (Notice of Intent to Levy) May seize state tax refund by stated deadline.
  5. Letter 1058 or Letter 11 and other letters (Final Notice of Intent to Levy and Notice of Right to Appeal)
The first three notices are sent by regular mail and the final two by certified mail. Here are steps to take when you receive the last notice.

Three Action Steps To Take When You Receive the Final Notice of Intent To Levy:
  1. First of all, read the notice carefully. It should state “Notice of Intent to Levy and Notice of Your Right to Appeal”. If it only states “Notice of Intent to Levy” it is not the final one giving the IRS the authority to seize your assets. If the letter does not give you notice of your right to appeal this collection action by the IRS you still have one notice to go before a levy can take place. Another way to know whether the notice is the one that gives the IRS the right to levy your bank account or seize other assets is the designation of the notice found at the top right of the notice. The final notice is an LT11 or L1058 (and others as well). The one designated as CP504 is the second to last notice mentioned above. This one does not give the IRS the right to levy because it does not contain a notice of your right to appeal this action by the IRS.
  2. The next step you should take is notice the date when the IRS can actually take action to seize your assets. It is listed on the notice. Here is the language used and found around the middle, left side of the first page: (It isn’t in bold lettering which I have used to highlight the wording used.)We haven’t received a payment despite sending you several notices about your overdue taxes. The IRS may seize (levy) your property or your rights to property on or after April 1, 2017.
    In this example you need to take action by April 1, 2017 or risk a levy action by the IRS. If you ignore this deadline you might be dismayed when you try to get money from your ATM and realize there is no money in your account. Or your employer might tell you that a significant portion of your paycheck has been garnished by the IRS. Fortunately, you can prevent this from happening to you.
  3. File an appeal. The third step to take when you receive this last Notice of Intent to Levy and Notice of Your Right to a Hearing is to file an appeal. This will prevent the IRS from actually levying your assets and give you time to consider your options. By filing an appeal you take the file away from the Collections Division and place it in the hands of the Appeals Division and this will normally give you several months to resolve your situation.

Sometimes, even without an appeal, you can contact the Collections Division of the IRS and try to work out a solution to prevent the IRS from levying your bank account or seizing other assets. There are a number of options you have to resolve your tax liability, including several forms of Installment Agreements, Currently Not Collectible Status, Offer-in-Compromise, a Partial Payment Installment Agreement, Abatement of Penalties, and sometimes elimination of tax debt due to expiration of the Collection Period allowed for the IRS to collect the amounts owed. There are other possible options available depending on the circumstances of each case.
Sometimes you need professional help. Depending on the amounts owed, your personal financial condition, and the accuracy of the IRS assessment of your tax liability, you might be better off hiring someone who deals with the IRS on a regular basis such as Mike McVay, I.R.S. Income Tax Specialist. 850-725-5696 * Mike@MikeMcVay.com
IRS laws and regulations can be confusing and most people will not be able to figure out their rights and settlement options when negotiating with the IRS. By consulting with an experienced IRS tax resolution specialist you can usually resolve your tax liability in your best interest. An Tax Accountant like Mike McVay at McVay Business Services, experienced IRS tax resolution specialist in Pensacola, FL is your best choice. Mike McVay has 5-star reviews and his knowledge is unmatched in the experienced IRS tax resolution specialist area. will represent you before the IRS so that you do not have to have any contact with the IRS.

McVay Business Services

Experienced IRS Tax Resolution Specialist
5336 N Blue Angel Pkwy
Pensacola, FL 32526


10/10/2019

Signs You Need to Hire a Bookkeeper

Picture

Bookkeeping takes up more time than you can afford!

​If your business is growing, you can only get away with Do-It-Yourself bookkeeping for so long.
​

Maybe you have a really great spreadsheet template you found online. Maybe you even shelled out for some accounting software. But as your business expands and your financials get more complex—you’re going to get up one day, look at yourself in the mirror, and say, “I need to hire a bookkeeper.”
While there’s no hard-and-fast rule to when you should bring on hired bookkeeping help, there are some common, telltale signs that entrepreneurs experience just before they reach the tipping point.

If you’re suffering from any of the following symptoms, it’s probably time to hire a bookkeeper.

According to a Gallup poll, 39% of small business owners work more than 60 hours a week.
Don’t take your own time for granted. Not only does overworking lead to burnout, but every minute you spend on a task has a dollar equivalent.
First, start tracking how much time you spend per week on bookkeeping. Then, using an online calculator, determine how much your time is worth, and figure out how many “dollars” you spend on bookkeeping per month.
QuickBooks Services
Compare your “salary” as your own bookkeeper against the price of professional bookkeeping. Once you treat the time you spend bookkeeping as an actual expense in cash, you’ll have a better idea of whether you should keep doing it.
Your books are never up to date

When you fall behind on bookkeeping, your books stop reflecting the actual state of your finances. That makes it harder (sometimes impossible) to understand cash flow and accurately gauge the health of your business.
For instance, if your Cost of Goods Sold (COGS) hasn’t been updated in six months, you can’t subtract if from your revenue in order to determine how much profit you’ve earned in that time.
Which means you’re blind to how much money you’re actually making—and the steps you can take to increase your income.

Contact Us

What’s more, if your books aren’t up to date, you’ll have a ton of catch up bookkeeping to do during tax season, making a typically stressful time of year even more difficult.

With a qualified bookkeeping solution, you can expect to receive monthly financial statements, so you’ll know where your money is going to and coming from.

You missed out on tax write-offs

Suppose you just found out that, since your home is more than 50 miles from your place of work, you’re allowed to deduct some of the cost of commuting.

That’s great news. Only, now you’re thinking about all the years you spent without filing this deduction, the extra money you could have saved, and how you could have spent it. Images of an in-ground pool dance in your head.

The sooner you know about small business tax deductions, and the sooner you take advantage of them, the sooner you’ll benefit.

Part of a bookkeeper’s job is to take every business expense you incur and categorize it properly. In the process of doing so, they’re able to spot obvious deductible expenses such as mileage.

Ultimately, an accountant with experience in your industry is most qualified to give you comprehensive guidance regarding tax write-offs. But many business owners only talk to their accountants during tax season. A good bookkeeper who understands your business’s needs can help you out during the rest of the year.

Mike McVay, QuickBooks Accountant (Certified) with his CFO services covers all your bookkeeping, accounting, payroll and tax filing obligations with reasonable rates for small business.
Call Mike @ 850-725-5696
Mike@MikeMcVay.com 



    Mike McVay, Tax Accountant Blog
    Certified ​QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, FL

    Best Price
    ​No Compromise

    Picture

    Author

    Mike McVay, Accountant Experienced IRS Tax Resolution Specialist
    With over 20-years experience working with individuals, families & small business owners. McVay has long term knowledge in taxation to help with their income tax, I.R.S tax issues and businesses management.
    850-725-5696​
    Mike@MikeMcVay.com

    Book An Appointment

    Archives

    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    August 2015
    July 2015
    February 2015
    January 2015
    December 2014
    November 2014

    Categories

    All

 ©2022 this website and all of its sub domains are owned and operated by
​McVay Consulting Services Inc. dba McVay Business Services
All Rights Reserved · Privacy Policy in place.
Pensacola Tax Services, Payroll, Accounting & QuickBooks Services
​
Mike@MikeMcVay.com

​850-725-5696

5336 N. Blue Angel Parkway
Pensacola, FL 32526


Client Portal Login

Subscribe to our newsletter