How to handle the IRS

—from The American Institute of Professional Bookkeepers VOL. 3: Issue 2

Has your company or client heard from the IRS? Sooner or later they may. You and your accountant are expected to deal with the IRS in a timely manner.

• Send any correspondence to the IRS via certified mail, return receipt requested.

• Always maintain a good audit trail—all correspondence relating to the notice, such as

• copies of canceled checks, receipts, tax returns, and letters.

• If the IRS does not respond within 6 weeks (8 weeks at most), send the IRS a copy of the correspondence, write “Second Response” on the top, and include the date of your first response. Tip: Include clearly marked copies of all prior correspondence with the IRS.

• If you do not resolve the problem in three attempts, use the IRS Tax Payer Advocate's office.

• If you realize that you owe money and it was an honest mistake, ask for an abatement of penalties. Intent and past “good faith efforts” to make timely deposits may well result in penalties being abated.

How can I handle my money better?

10 Essentials

1. Create a budget

2. Understand your expenses

3. Understand your income

4. Consolidate your debt

5. Slash or remove unnecessary expenses

6. Create an emergency fund

7. Save 10 - 15% for retirement

8. Review and understand your credit report

9. Use a tool or financial app

10. Hire a professional money manager

Q. What is the definition of an accountant?

A. Someone who solves a problem you did not know you had in a way you don’t understand.

Every day, Americans spend an average of $101

according to Gallup. The bulk of that money goes to housing, food, and transportation, but a surprising amount of it gets spend on “Funyuns”.

The number-crunching folks at MentalFloss.com did a break down of where the $10.7 trillion that Americans spent in a single year went. Here is a brief look at the lesser known slices of America’s big financial pie chart.

• Touring Civil War battlefields ($442 million)

• Drinking beer on Independence Day ($1 billion)

• Lighting up fireworks ($800 million)

• Lighting up (legal) marijuana ($6.9 billion)

• Eating up Cheetos, Doritos, and Funyuns ($4.8 billion)

• Fixing car damage caused by potholes ($3 billion)

• De-icing streets with road salt ($2.3 billion)

• Buying bags of ice ($3 billion)

• Shopping for artificial Christmas trees ($854 million)

• Chopping (real) Christmas trees ($800 million)

• Enjoying the great outdoors ($646 billion)

• Fishing trips ($41.8 billion)

• Bicycle trips ($81 billion)

• Rock climbing/hiking trips ($12 billion)

• Treating trips and falls ($76.3 billion)

• Birdwatching ($26 billion)

• Paying for wild bird feed ($3 billion)

• Treating dog bites ($570 billion)

• Buying chew toys ($32 billion)

• Going under the knife for aesthetic costmetic surgery ($13.5 billion)

• Purchasing cosmetics ($62 billion)

• Getting your nails done ($7.47 billion)

• Getting hammered ($223.5 billion)

• Treating stress-related illnessess ($300 billion)

• Buying heartfelt Valentine’s jewelry ($4.3 billion)

• Taking a risk with lottery tickets ($80.55 billion)

• taking a risk with online dating ($2 billion)

—MentalFloss.com .. Lucas Reilly (Sept 2017)

the Beatles

Let me tell you how it will be.

There’s one for you, nineteen for me

‘Cause I’m the taxman

Yeah, I’m the taxman

If you drive a car, I’ll tax the street

If you try to sit, I’ll tax your seat

If you get too cold, I’ll tax the heat

If you take a walk, I’ll tax your feet

‘Cause I’m the taxman

Yeah, I’m the taxman