Information about Tax O'clock, LLC

We pride ourselves on our adaptability and commitment to excellence in every aspect of our service. Explore what we have to offer and how we can contribute to your success in tax preparation and planning.

Frequently asked questions

It began with a simple idea, fueled by a passion for helping clients navigate tax season. As a small business in Port Chester, New York, we pride ourselves on personalized attention and meticulous care. Our approach emphasizes quality and integrity, ensuring our work reflects our commitment to excellence in tax preparation.

What is an Enrolled Agent (EA) and how is it different from a CPA?
An Enrolled Agent (EA) is a federally authorized tax practitioner who has technical expertise in the field of taxation and is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service (IRS) for audits, collections, and appeals. Unlike CPAs, whose expertise is broader in accounting, EAs specialize solely in taxation.

Do I have to speak to the IRS during an audit?
No, you do not. As an Enrolled Agent, we can represent you before the IRS, meaning you typically do not have to communicate directly with the IRS during an audit. We handle all correspondence and negotiations on your behalf.

I can't pay my taxes this year due to the economic downturn. What should I do?
If you cannot pay your taxes, it is crucial to still file your tax return on time to avoid failure-to-file penalties. The IRS offers various payment options, including installment agreements and offers in compromise. Contact us to discuss your specific situation and explore the best solution for you.

Can the IRS really settle for less than what I owe?
Yes, under certain circumstances, the IRS may settle for less than the full amount you owe through an Offer in Compromise (OIC). An OIC allows certain taxpayers to resolve their tax liability with the IRS for a lower amount than what they originally owed. Eligibility depends on your ability to pay, income, expenses, and asset equity. We can help you determine if you qualify and assist with the application process.

How does my Mexican status affect my US tax debt?
Your residency status in Mexico can significantly impact your U.S. tax obligations, especially if you have U.S. income or assets. The U.S.-Mexico tax treaty can provide relief from double taxation and define residency for tax purposes. It's essential to understand how these rules apply to your specific situation to ensure compliance and potentially reduce your tax burden.

What happens if I have not filed my foreign income in previous years?
Failing to report foreign income can lead to significant penalties from the IRS, including failure-to-file and accuracy-related penalties. The IRS has programs, such as the Streamlined Filing Compliance Procedures, that may help taxpayers come into compliance. We can assess your situation and guide you through the process of catching up on past filings.

Do I have to pay taxes in both countries if I am living in Mexico but have income in the US?
You may be subject to tax in both countries, but the U.S.-Mexico tax treaty is designed to prevent double taxation. You might be able to claim credits for taxes paid to Mexico on your U.S. return, or vice versa, depending on the type of income and your residency status. Proper application of the treaty is crucial.

Do I have to report my foreign bank account?
Yes, U.S. citizens, green card holders, and resident aliens are generally required to report foreign bank accounts if the aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year. This is done through the Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114) and potentially through Form 8938, Statement of Specified Foreign Financial Assets. Failure to report can result in severe penalties.

Quick tips for an easier tax season

 

    • Avoid Mixing Personal and Business Expenses: Maintain separate bank accounts for personal and business or investment transactions. This practice simplifies record-keeping and helps prevent complications during tax preparation or audits.
    • Monitor Your Days in the Country: Your tax residency status plays a crucial role in applying the U.S.-Mexico Tax Treaty correctly. Keep a detailed record of your physical presence in each country to ensure accurate tax filings.

 

 

    • Centralize Your Notices: If you receive a letter from the IRS or SAT, respond promptly. In tax defense, deadlines are crucial—failing to respond can lead to costly penalties. Ensure all official correspondence is gathered in one central location.
    • Organize Your Documents: Maintain an organized system for all your tax-related documents (W-2s, 1099s, receipts, etc.) throughout the year. This will streamline your tax preparation process, making it smoother and less stressful.

 

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Legal Disclaimer/Aviso Legal

"The information provided on this website is for general informational purposes only and does not constitute legal or tax advice. Use of this website or submission of a contact form does not create an attorney-client or practitioner -client relationship between you and Tax O'clock, LLC/Maria Betancourt. As an Enrolled Agent, my authority to represent taxpayers is limited to federal tax matters before the IRS. Advise Legal service related to Mexican fiscal law are provided under my credentials as licensed lawyer in Mexico. Tax laws are subject to change, especially during volatile economic periods; please consult with a professional regarding your specific situation before taking any action."

"La informacion proporcionada en este sitio web tiene unicamente fines informativos generales y no constituye asesoria legal o fiscal. El uso de este sitio o el envio de un formulario de contacto no crea una relacion abogado-cliente o profesional-cliente entre usted y Tax O'clock, LLC/Maria Betancourt. Como Agente Regustrado (EA), mi autoridad para representar contribuyentes se limita a asuntos fiscales federales ante el IRS. Los servicios de asesoramiento legal relacionados con el derecho fiscal mexicano  se brinda bajo mis credenciales como abogado titulado en Mexico. Las leyes fiscales estan sujetas a cambios, especialmente durante periodos de volatilidad economica; consulte con un profesional sobre su situacion especifica antes de tomar cualquier medida."