The Importance of Safeguarding Your Tax Identity In today’s digital age, identity theft is a growing concern, particularly during tax season when sensitive personal information is frequently exchanged. Tax-related identity theft can result in fraudulent tax returns filed in your name, unauthorized access to your financial accounts, and long-term financial repercussions. Therefore, it’s crucial for taxpayers to take proactive steps to safeguard their identities. Why Safeguarding Your Identity is Crucial Tax-related identity theft often occurs when someone uses your stolen Social Security number to file a tax return and claim a fraudulent refund. Victims may face delayed refunds, complications with their tax records, and extensive efforts to restore their identities. Protecting your personal information not only secures your financial well-being but also helps prevent the stress and hassle of dealing with identity theft. The Role of an Identity Protection PIN (IP PIN) One effective measure to enhance your tax security is obtaining an Identity Protection PIN (IP PIN) from the IRS. An IP PIN is a six-digit number that adds an extra layer of protection to your tax return by verifying your identity before the IRS accepts your filing. This unique code helps prevent unauthorized individuals from using your Social Security number to file fraudulent tax returns. Taxpayers can obtain an IP PIN by visiting the IRS website and completing the online application. Once enrolled, you will receive a new IP PIN each year, which must be included on your federal tax return. How Noble Pacific Tax Group Prioritizes Client Data Security At Noble Pacific Tax Group, we understand the importance of safeguarding our clients’ sensitive information. We employ robust security measures to protect your data from unauthorized access, both online and offline. Our secure client portals, encrypted communication channels, and stringent internal protocols ensure that your personal and financial information remains confidential. We also educate our clients about best practices for protecting their identities, such as insisting that clients use our secure portal to provide documents and confidential information rather than email. Our commitment to data security is a cornerstone of our practice, giving you peace of mind that your information is in safe hands. Final Thoughts Identity theft is a serious threat, but by taking proactive steps like obtaining an IP PIN and working with trusted tax professionals, you can significantly reduce your risk. At Noble Pacific Tax Group, we are dedicated to safeguarding your data and supporting you in maintaining your financial security. If you have any questions about protecting your identity or need assistance with your taxes, don’t hesitate to reach out to us at 323-498-1040, 562-485-9030 or contact us. At Noble Pacific Tax Group, we are here to help navigate and succeed in dealing with the IRS or state. In most cases you will never have to meet or speak with the IRS or state.If you are looking for this expertise, contact Noble Pacific Tax Group.

As the tax-filing season unfolds, many taxpayers are taking the bull by the horns and doing their own taxes. Though it may seem like good news for the individual taxpayer, 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. That said, lets jump into the 4 common tax return mistakes that could land you in tax trouble. 1. Transposed Numbers If the 1099 you receive shows $6300 in income and you inadvertently enter $3600 instead, the IRS may see this as a tax dodge instead of an innocent mistake. At best, transposing numbers will slow down your refund and raise a red flag with the tax agency. At worst, it could trigger an audit or further examination of your entire return. IRS computers are very good at comparing the figures taxpayers report to the ones they receive independently from banks, brokerage firms, and other agencies. Be sure to double-check and verify every number you enter and make sure it is right. Your tax software can tell you if your numbers do not add up, but they cannot catch transposed figures. 2. Misspelled Names It is easy to misspell a name or transpose a Social Security number when entering dependent information but doing so could cause real problems with your return. Be sure to double-check the names, ages, and Social Security numbers of all your children before sending your return to the IRS. Do not assume that all of that information will be transferred from a prior-year return. 3. Missing Social Security Numbers It is easy to forget this vital piece of information and doing so could delay your return and cause long-lasting problems. You may assume that your tax prep software will automatically enter your Social Security number, but that does not always happen. Be sure to give your Social Security number (and that of your spouse) one last look before filing your return. That last-minute check could save you a world of trouble later on. 4. Not Reporting All Your Income or Taking Too Many Deductions The IRS will likely get notified of income you received throughout the year, and it doesn’t just include your W2 wages. It’s important to keep track of all your income and report it to the IRS correctly to avoid any problems. It can also be tempting to click a few extra boxes and input a few made-up numbers as deductions to bring your tax liability down. DO NOT DO THIS. Just because the software lets you do this, doesn’t mean you should. It’s not the software’s job to tell you whether or not you should be taking that extra deduction or write off, it’s the taxpayer’s job to be honest and file their tax returns correctly. NEED TAX RELIEF? If you made a mistake on your tax return and end up on the receiving end of an IRS notice, or if you have years of unfiled tax returns, reach out to our office. We’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. At Noble Pacific Tax Group, we are here to help navigate and suceed in dealing with the IRS or state. In most cases you will never have to meet or speak with the IRS or state. If you are looking for this expertise, contact Noble Pacific Tax Group or call 323-792-0792.

Cryptocurrency has become a popular way to invest, but the tax side of virtual coins can be difficult to navigate. The IRS has oscillated over the years on its stance on cryptocurrency, making it confusing even for the most diligent investors. In March of 2021, the IRS announced Operation Hidden Treasure in order to crack down on cryptocurrency reporting. If you’ve bought and/or sold crypto recently, it’s important to declare your crypto transactions on your tax forms, to avoid fraud and evasion charges. Here’s what you should know. 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 Qualified Tax Resolution Firm like ours that is skilled in negotiating back taxes with the IRS. We can help you file amended returns and get you back into compliance, while potentially negotiating with the IRS on your behalf.  What Is Operation Hidden Treasure? Operation Hidden Treasure is a joint effort by the IRS Civil Office of Fraud Enforcement and its Criminal Investigation Unit. It is designed to search for unreported income from cryptocurrency. Operation Hidden Treasure has trained agents to examine the blockchain to find signs of tax evasion. Blockchain is the digital ledger that tracks your cryptocurrency mining and transactions. The IRS agents look for signs that are marked as signatures, which makes it easier to detect further fraudulent activity. Crypto users have found ways to skirt reporting requirements by sending multiple transactions under a certain dollar amount or pouring their virtual currency into shell corporations, other countries, and cold storage. The IRS is also collaborating with European law enforcement agencies to combat international fraud. How To Protect Your Assets The IRS considers virtual currency to be property like gold, rather than money, and sales and exchanges of crypto are taxed accordingly. If your only crypto transaction this year was purchasing crypto, then that does not need to be reported, according to the IRS FAQ on their website. However, if you sold or you traded crypto for any goods or services, that does need to be reported. Other taxable crypto activity includes mining, and income from this and other crypto activities must also be reported on your tax return. When you sell your crypto, keep track of its value when you purchased it, and its value when you sold it. While crypto and the IRS can both be murky subjects, your transparency is the key to protecting your financial assets from future tax audits. To get ready for the upcoming tax season, it’s important to get your portfolio organized. If you have bought, sold, or traded crypto in the past year, contact a tax lawyer or a tax resolution firm like ours for advice on how to report your cryptocurrency transactions. The calculations can be tricky so we recommend using a third-party app to provide the reports necessary to file taxes properly. Need Tax Relief? If you do get in trouble with the IRS, reach out to our tax resolution firm and we’ll schedule a free, no-obligation confidential consultation to explain your options in full to permanently resolve your tax problem. At Noble Pacific Tax Group, we are here to help navigate and suceed in dealing with the IRS or state. In most cases you will never have to meet or speak with the IRS or state. If you are looking for this expertise, contact Noble Pacific Tax Group or call 323-792-0792.

If You Can’t Pay Your Taxes, You Have Legitimate Options If you can’t pay what you owe the IRS, you have some options. However, the worst thing you can do is to ignore the mail you receive from the IRS and let your tax problem go unsolved. The IRS has a great deal of power to collect money they think is theirs. The IRS can garnish your wages, levy (seize assets) your bank accounts and other assets, and put liens on your home etc. Here’s what you can do if you find yourself unable to pay your taxes. Note, we always recommend getting in touch with a tax resolution professional to help avoid the harsh penalties and interest that will accrue in addition to your unpaid taxes. It’s far easier to navigate towards tax resolution, if you have a professional working on your behalf. If you’d like to schedule a no-cost confidential tax relief consultation, First, make sure that you file your returns Even if you have no hope of being able to pay your taxes, you must at least file your income tax returns. The penalties for not filing are much larger than those for not paying, and non-filers can be subject to a criminal investigation and even civil penalties and jail time. The IRS will remove penalties for not filing and not paying but you have to have a good reason. We can request to have your penalties removed or reduced. It’s important to remember that when you file for an extension, it only gives you more time to file. It does not give you more time to pay. Review your W-4 withholdings If your employer withholds money from your salary to pay your taxes with, you shouldn’t have to worry about paying anything extra from that income source. If you do owe more, it’s a sign that your W-4 form is incorrect. To make sure that you don’t get into tax trouble repeatedly, you should make sure your W-4 form is correct and get advice from a tax professional about the kind of withholdings necessary. Make a partial payment If you can’t afford to pay all that you owe, you should pay whatever you can. While you will still be hit with interest and penalty charges, they will be smaller than they would be if you paid nothing. These charges are proportional to what you owe the IRS. Try to work with the IRS If you can’t pay, there are resolution options available to you if you qualify for them. They include a payment plan or an offer in compromise to name a few. You need to first step up and admit to your inability to pay, though. An offer in compromise is an agreement between the IRS and the taxpayer that allows the taxpayer to settle their debt for less than the amount owed. Sometimes, for a fraction of the amount owed.  There are strict eligibility requirements, and you should consult with a tax resolution specialist first. An installment agreement, aka payment plan, is an agreement between the IRS and the taxpayer that permits the taxpayer to pay back their debt over time, generally in 60-72 months. Depending upon the amount owed, and ability to make monthly payments, determines the type of installment agreement the IRS will allow, as there are several variations of these payment plans.  An experienced tax resolution specialist will guide you through the maze and myriad of these different options. If you need an expert tax resolution provider who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. At Noble Pacific Tax Group, we are here to help navigate and suceed in dealing with the IRS or state. In most cases you will never have to meet or speak with the IRS or state. If you are looking for this expertise, contact Noble Pacific Tax Group or call 323-792-0792.

Eliminate April 15 Tax Stress  – Use a Step-by-Step Approach Is it any wonder that most Americans dread April 15? The U.S. tax code contains more words than the Bible, and hundreds of new pages are added almost every year. With all the complexity, it’s no wonder that so many Americans procrastinate filing their taxes, but that introduces stress and can land you in hot water with the IRS. What if you don’t get it done on time? You can file for an extension, but you are still required to pay the taxes you owe to avoid incurring penalties and interest. How do you know you didn’t make a mistake with your last-minute tax filing? Something as simple as a math error could increase the chance of an audit and put you in the IRS’s crosshairs. We specialize in helping people who owe $10,000 or more to the IRS or have years of unfiled tax returns, so we’ve seen many mistakes made by innocent taxpayers. If you have any tax trouble or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We recommend using a methodical step-by-step approach to preparing and filing your taxes so you can avoid burying your head in the sand on April 15th. As with any unpleasant and complicated task, breaking your taxes down into smaller and more manageable chunks can make things easier. This year, make a commitment to use a step-by-step approach to your tax return. If you follow these simple steps, you could be done with your taxes before you know it. Step 1 – Set Up a Command Center Chances are you will start receiving documents in early January, and you may still be receiving those documents in March. That means you need a convenient place to store them. Setting up a command center in your home makes it easier to store those documents and keep them handy. If you have a scanner, take a few minutes to image each document as it arrives – you can also use an app like Cam Scanner on your phone to create PDFs. Set up a special folder on your computer or cloud storage service to hold all those documents and be sure to back up any files stored on your computer. Those electronic copies can be invaluable if the originals are damaged or destroyed. Step 2 – Choose A Good Tax Professional (But Use A Tax Resolution Service for More Complicated IRS Issues) While they cannot make the task totally painless, tax preparation professionals do make the process a great deal easier. Keep in mind, if you owe multiple years of taxes and have multiple years of unfiled returns, we recommend engaging with a tax resolution firm that understands your unique situation and will help you find the tax relief you need. Most tax preparers aren’t trained or experienced in complex tax resolution, so find the right tax resolution firm to help you. Step 3 – Enter Your Tax Documents When You Get Them One of the great things about technology is that you can organize and file each tax document as you get it, often you can download all your tax documents from various online services. If the mailman delivers any tax documents to you like a 1099-INT or a W-2, you can scan things as they come in. Whether you get five tax documents a day or just one, storing, organizing, and entering the documents now can save you time later on. Step 4 – Review Your Documents and Final Tax Return After you think you have all your documents organized and your tax return is ready to file, review everything carefully to make sure there aren’t any obvious issues. Look through the paper and electronic copies and check each one off on your tax return. If any are missing or anything is wrong, enter it or correct it right away. Step 5 – Bring It All Together Now that the final review is complete and all the documents have been entered, it is time to file your return. Your tax prep professional should include a series of checks designed to catch common errors. Be sure to ask questions and correct any problems you might find and save an electronic version of your final tax return to your computer. Filing taxes is never going to be fun, and this annual process will never be pleasant. Even so, you can make it less stressful by breaking this chore down into its component parts. Following the steps outlined above can help you deal more effectively with your tax bill and all the complexities of the tax code. OWE BACK TAXES? We specialize in helping people who owe the IRS or state $10,000 or more. We’ve seen taxpayers get blindsided every year by a huge tax bill and they often fall behind on their taxes for years on end. If that’s you, we can help. At Noble Pacific Tax Group, we are here to help navigate and suceed in dealing with the IRS or state. In most cases you will never have to meet or speak with the IRS or state. If you are looking for this expertise, contact Noble Pacific Tax Group or call 323-792-0792.