Tax season brings more than filing deadlines and the hustle and bustle of collecting all your financial documents; unfortunately, it also brings an increased risk of tax identity theft. Scams of all kinds are on the rise, including those in which bad actors take advantage of stolen personal information to file fraudulent tax returns. Even worse, they're often able to pull it off before the rightful taxpayer submits their own. All too often, people don't realize they've fallen victim to this particular scam until the IRS rejects their legitimate tax return because one has already been filed in their name. 

Understanding how tax identity theft happens is the best way to be prepared and safeguard your financial security. Here's what you should know about tax identity theft, how it happens, and how to protect yourself.

Most people assume their tax preparer's job is done once their tax return is filed. But what happens if, months or even years later, the IRS sends a notice or requests more information? Not all tax service providers offer long-term support after tax season, which can leave taxpayers scrambling to respond to IRS inquiries on their own. Myrick CPA takes a different approach. Our Tax Service Guarantee provides ongoing protection, ensuring that if the IRS or state tax authorities reach out, you have a trusted professional handling the situation from start to finish.

Understanding how different types of income are taxed can make a big difference in how much you owe or how much you can save. The IRS categorizes income into three main types: earned, passive, and portfolio income. Each type is taxed differently and comes with its own rules for deductions and exemptions.Knowing where your income falls can help you plan better, reduce tax liability, and use smart tax strategies.

If you're like most homeowners, real estate is the most valuable financial asset you own. As you make mortgage payments and property values increase, home equity grows, creating opportunities to strengthen economic security and even pass wealth to the next generation.Understanding how to build and use home equity can help you make smart financial decisions that benefit both your present and future.

When it comes to stressful life experiences, receiving a notice from the IRS about an audit or tax dispute ranks near the top. Whether it's a disagreement over an audit or an assessed penalty, taxpayers often assume their only options are filing an appeal or preparing for a long, expensive legal battle. What you may not realize is that there is a third option: mediation. Also known as alternative dispute resolution, it can be a faster, less costly path to resolving IRS issues.

Understanding when mediation makes sense and how it compares to other resolution options can help you take control of your tax situation while finding a solution that works in your favor.

For many taxpayers, a hefty refund feels like a financial win - after all, who doesn't love a big check from the IRS to celebrate after filing taxes? But is that refund really the windfall it seems? In reality, it often means you've been giving the government an interest-free loan all year. With some strategic planning, you can keep more money in your pocket throughout the year and use it to meet your personal financial goals.

Let's break down why big refunds might not be ideal and how adjusting your tax withholding might be a financial game changer.

The 2024 tax season brings with it a new sense of uncertainty and confusion, which can make it feel even more stressful than usual. Proposed tax law changes from an incoming Presidential administration could include retroactive adjustments, potentially affecting your financial plans for the year. While all of this might seem overwhelming, the right strategies and a proactive approach can help you stay ahead of the curve.

When most people think about taxes, they picture gathering documents and racing to meet the filing deadline. But there's a lot more to managing taxes than filing once a year. Tax preparation and tax strategy may sound similar, but they serve very different purposes. While one focuses on compliance, the other focuses on building long-term financial benefits.

Let's break down these concepts and explain why working with a trusted CPA can make a significant difference in your financial outlook.

Congratulations to all new homeowners in the Washington, D.C. area! While you're busy settling in and making your house a home, don’t forget that there are potential tax benefits waiting to be unlocked. It's time to dive head-first into the world of tax deductions, programs, and housing allowances that could help to ease your financial burden and have some money left in your budget for repairs and home decorating.

Seeing a letter from the IRS in your mailbox is never a good feeling, especially when you're not sure why they're contacting you or what steps you should take next. No matter why the IRS is contacting you, understanding the reasoning behind the communication is the key to resolving the issue once and for all; and with the right approach and professional support, you can confidently handle IRS concerns without the ensuing panic.