Tax Relief with Timalyn Bowens

Episode 97: I hear so many things about members of our armed forces. One thing people say is that military members are rich because they don't have to pay for anything and they don't pay taxes. Well, that's not exactly how it works. There's so much misinformation out there, and I don't want the people who serve our country to be misled. Thank you so much for your service, and h...

Episode 96: Last episode, we talked about clergy taxes and busted the myth that pastors do not pay taxes. While they do pay taxes, they do not pay taxes on every benefit. One of those special perks is the clergy housing allowance. Timalyn has seen the housing allowance handled incorrectly more times than she would like to admit, so today she is breaking down what it is, who qualifies, and how it i...

Clergy Taxes

Episode 94:  In this episode, Timalyn explains what a tax-exempt organization is, the criteria to qualify as one, and the ongoing tax filing obligations.  This episode is for taxpayers who are looking for the validity of a tax-exempt organization as well as those interested in starting a tax-exempt organization. What is a Tax-Exempt Organization? A tax-exempt organization is one that is excused fr...

Episode 93:   In this episode, Timalyn shares an option for taxpayers who owe the IRS but can’t pay their tax debt in full. It’s called the Simple Payment Plan. It’s a type of IRS Installment Agreement that has now been extended to businesses as well. Timalyn explains what a Simple Payment Plan is, who qualifies, and how to set one up with the IRS. What is a Simple Payment Plan? As mentioned befor...

Episode 92:  In this episode, Timalyn talks about estate taxes and something that can easily get overlooked. You may be under the estate tax exclusion and think you don't have a filing requirement, but if the estate earns income after someone passes away, that can create a separate tax filing requirement. What is the Estate Tax? First things first, the estate tax is a tax on your right to tran...

Episode 91:   In this episode, Timalyn talks about the gift tax and why it matters when you're giving money or property. She explains what can be considered a gift, the annual exclusion, Form 709, and how gift tax can also come into your estate planning. What is the Gift Tax? First things first, the gift tax is a tax on the transfer of property from one person to another when the person receiv...

Episode 90:  In this episode, Timalyn talks about IRS letters and notices and why opening them right away can make all the difference. She walks listeners through what to look for, how to understand the notice, and what steps to take before responding. Where do you start? Timalyn knows receiving an IRS letter can be stressful, but she encourages listeners not to let fear take over. Take a deep bre...

Episode 89:  In this episode, Timalyn talks about the new Trump Accounts and how they may help families start saving for a child's future. She explains who qualifies, how the $1,000 Treasury contribution works, and what parents should know before making the election. What is a Trump Account? A Trump Account, also known as a 530A Custodial Account , is a retirement account created for the exclu...

Episode 88:  In this episode, Timalyn explains what the Kiddie Tax is, why it was created, and how it may affect children with investment income. She also walks through when parents may need to file IRS Form 8615 or make the election to report their child's income using IRS Form 8814. What is the Kiddie Tax? The Kiddie Tax was created to prevent taxpayers from shifting investment income to the...

Episode 87:  In this episode, Timalyn talks about the CP504 Notice of Intent to Levy. She explains what this notice means, what can happen if it is ignored, and some of the options taxpayers may have to stop IRS collection actions before things get worse. What is the CP504 Notice of Intent to Levy? The CP504 is a notice from the IRS letting taxpayers know that the IRS intends to levy if the balanc...

Episode 86: In this episode, Timalyn talks about tax withholding and why it is so important to review throughout the year. She explains how the pay-as-you-go tax system works, who should be paying attention to their withholding, and how a simple checkup now may help avoid tax bills, penalties, and interest later. What is tax withholding? The United States has a pay-as-you-go tax system. That means...

Episode 85:   In this episode, Timalyn shares how tens of millions of taxpayers may be due a refund from the IRS. Unfortunately, the refund won’t be automatic, and there is a clock ticking. That is why Timalyn is discussing it in today’s episode.   What happened? During the COVID-19 pandemic era, the IRS continued to assess taxpayers' accounts with penalties and interest. Well, the commissioner an...

Episode 84: In this episode, Timalyn talks about a type of Offer in Compromise that may help taxpayers when the IRS made a mistake and assessed taxes they do not actually owe. She explains what a Doubt as to Liability Offer in Compromise is, when it may apply, and why documentation matters when dealing with the IRS. What is a Doubt as to Liability Offer in Compromise? A Doubt as to Liability Offer...

Episode 83: In this episode, Timalyn talks about a very common misconception she’s been hearing, people thinking they can just wait until tax season to pay everything. She explains how the underpayment of estimated tax works for individuals and what can happen if you don’t pay throughout the year. What is the underpayment of estimated tax? The underpayment of estimated tax is a penalty the IRS may...

Episode 82:   In this episode, Timalyn talks about FinCen Form 114, Report of Foreign Bank and Financial Accounts (FBAR) . Within recent years, FinCen has cracked down on those who are willingly not filing their FBAR. The civil penalties for mistakes with the FBAR can range from $500 - $1,000,000+. That is why Timalyn is discussing it today, to help people avoid those penalties.  What is the FBAR?...

Episode 81:   In this episode, Timalyn talks about how to set up a payment arrangement with the IRS. Specifically, how to set up an online payment plan.  What is an IRS Payment Plan? An IRS payment plan is an arrangement between a taxpayer and the IRS that allows the taxpayer to pay their tax debt down over time. The IRS refers to these as installment agreements. Timalyn discusses different types...

Episode 80:   In this episode, Timalyn covers what an IRS IPIN is, who is eligible to get one, and how it is used. What is an IRS IP PIN? An IRS IP PIN is an Internal Revenue Service Identity Protection Personal Identification Number. The IRS issues these to taxpayers to help protect someone else from filing a tax return with their social security number (SSN) or individual taxpayer identification...

Education Tax Credits

Episode 78:   In this episode, Timalyn covers what an IRS Notice CP2000 is and how taxpayers should respond to it. What is a CP2000? Timalyn begins by letting listeners know what a CP2000 is not. It is not a bill. This notice is a proposal for changes due to the underreporting of income. This notice lets taxpayers know that discrepancies were found between what they reported on their taxes and wha...

One Big Beautiful Bill Act: Business Overview

Episode 76: In this episode, Timalyn does an overview of the One Big Beautiful Bill Act and how it will affect Individual Taxpayers. Next episode, she'll discuss some of the changes and how they affect business owners. 0:00 Understanding the One Big Beautiful Bill Act 3:59 How your standard deduction has increased 8:01 New $40,000 Cap for State and Local Taxes 10:32 Additional $6,000 Deduction...

Episode 75:   In this episode, Timalyn covers how changes to the United States Postal Service (USPS) postmark rule can affect taxpayers when communicating with the IRS. She also wishes her listeners a Happy New Year. What is the USPS Postmark Rule? The USPS postmark rule determines when a piece of mail is marked as received. A lot of companies and agencies use this rule to figure out if informatio...

Episode 73:  In this episode, Timalyn addresses taxpayers who can't afford tax representation and how they can get help through the Low-income taxpayer clinics.  What is the Low-Income Taxpayer Clinic? The low-income taxpayer clinic (LITC) helps qualifying taxpayers handle disputes with the IRS. It receives funding for the IRS but it is independent from the IRS and the Taxpayer Advocate Service (T...