#cp2000

Travel Nurses, Lexington Tax Group Has Your Back! 🏥💼

Hey there, incredible travel nurses!

We know you're out there saving lives, traveling from hospital to hospital, and pouring your heart into your work. It's inspiring, to say the least! But with all that movement and chaos, dealing with your 1099 taxes can be a real headache. That's where we come in. 🎉

At Lexington Tax Group, We Speak Your Language:

Navigating 1099 Taxes: Confused by all those forms? So were we, once! But now, we're pros at it.

Stress-Free Tax Planning & Filing: Taxes don't have to be a nightmare. Let us handle the scary stuff.

Flexible Appointments: You're busy saving lives; we get that. We'll work with your schedule.

Free Initial Consultation: We're so confident you'll love us; the first chat is on us!

A Partnership You Can Count On:

We understand the life of a travel nurse isn't 9 to 5, Monday to Friday. It's late nights, early mornings, and everything in between. Our expert team at Lexington Tax Group is committed to being your financial partner on this incredible journey of healing.

We believe in what you do, and we want to make your life a little easier. We'll maximize your deductions, negotiate with the IRS if you need us to, and be there with friendly, professional support tailored just for you.

Ready to Get Started?

Tax season doesn't have to be taxing (see what we did there?). Click the link below to schedule your free consultation, or just give us a call. We can't wait to meet you and help you on your way to a worry-free financial future!

Christopher Carmona, CPA CFE

http://carmonataxcpa.com

Last month our practice implemented software that allows us to monitor a taxpayer’s account within the IRS to determine if their account is under review for unreported income.  Below I discuss what taxpayers can do to reduce interest and possibly prevent a 20% accuracy related penalty 6 months before the actual CP2000 notice is ever sent out!

Lets revisit why the IRS sends out CP2000 notices: • The taxpayer filed a tax return that included 3rd party forms reported under the taxpayer’s social security number such as W2s, 1099s, & K1s. • Those 3rd parties also furnished copies of these same forms to the IRS. • When the amounts reported on the taxpayer’s return do not equal the amounts furnished to the IRS by the 3rd parties, then a CP2000 notice is issued to the taxpayer.

Remember that when taxpayers fail to report income either because they never received the forms or because they forgot to provide those forms to their tax preparer, then they will owe the additional taxes and interest on these unreported amounts.  If the increased tax liability exceeds $5,000, then the IRS will also assess a 20% accuracy penalty.  

➢ Account Monitoring o Our clients will have the option to pay for ongoing account monitoring where we are able to inform the client of the IRS flagging their account 6 months before the IRS issues the CP2000 notification.  This gives the taxpayer time to amend their return and correct any mismatches before they are assessed the accuracy penalty. ➢ Examination of Returns o If the taxpayer’s return is selected for examination, they may have up to 18 months to prepare for the audit before they are even notified by the IRS.  

The key takeaway is that with ongoing account monitoring taxpayers can prevent many future surprises.  In addition, if there is withholding on the forms that would result in an increased refund, then the IRS will not notify them and simply keep the withheld amounts.  If you or someone you know is having issues with CP2000 notices, feel free to reach out to us at:

Christopher Carmona, CPA CFE

Here’s what taxpayers should know if they get a notice from the IRS

Certain taxpayers might get a letter from the IRS this year. It’s called an IRS Notice CP 2000. It gives detailed information about issues the IRS identified. The IRS sends this notice when information from a third party doesn’t match the information the taxpayer reported on their tax return. The notice also provides steps taxpayers should take to resolve those issues.

Here is some…