Tax Relief with Timalyn Bowens

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...

Episode 72 :   In this episode ,  Timalyn addresses how long the IRS has to collect taxes from a taxpayer if they have unfiled tax returns.  Not filing taxes is not a get out of jail free card. You may yet be on the IRS' radar.  What are the different IRS statute of limitations? Many taxpayers believe that the IRS only has 3 or 6 years to assess tax for a certain year on their account. That is inc...

Episode 71 :   In this episode ,  Timalyn addresses the additional Medicare tax that taxpayers are faced with when they reach they reach a certain income threshold.   Before getting into the episode, Timalyn warns taxpayers not to go exempt on their W-4 because the government is shut down. She reminds taxpayers that they will still be responsible for the tax due when they file their taxes in the S...

Episode 70 :   In this episode ,  Timalyn addresses a tax filing fundamental that is often misconstrued and can lead to unnecessary tax debt and penalties.  Head of household is a tax filing status for taxpayers who are unmarried but keep up the expenses of a home for a qualifying dependent.  Who Qualifies for Head of Household? 3 requirements must be met for a person to claim head of household st...

Episode 69 :   In this episode ,  Timalyn deviates from the discussion begun  in Episode 64 about the One Big Beautiful Bill Act .   Timalyn addresses the government shutdown and how it affects the IRS and, in turn, all taxpayers.  Today, she's explaining  what a government shutdown is, how a government shutdown doesn't give taxpayers in tax debt a get out of jail free card, what to expect from th...

Episode 68:   In this episode, Timalyn continues the discussion begun in Episode 64 about the One Big Beautiful Bill Act.   Today, she's explaining the charitable contribution deduction and the changes that have been made to it under the One Big Beautiful Bill Act. What is a charitable contribution? Charitable contributions are money or property that are given to a 501(c)(3) nonprofit organization...

Episode 67:  In this episode, Timalyn continues the discussion begun in Episode 64 about the One Big Beautiful Bill Act.  Timalyn opens up the episode with a reminder of what the One Big Beautiful Bill Act is. There is a video version of this episode! You can watch it here : Senior Deduction Video Today, she's explaining the enhanced senior deduction for taxpayers who are 65 and older. This deduct...

Episode 66 :  In this episode, Timalyn continues the discussion begun in Episode 64 about the One Big Beautiful Bill Act.  Timalyn opens up the episode with a reminder of what the One Big Beautiful Bill Act is. Timalyn also warns that this tax year may not be the one where you want to let someone who is not a professional handle your preparation.  Today, she's explaining the car loan interest dedu...

Episode 65:   In this episode, Timalyn continues the discussion begun in Episode 64 about the One Big Beautiful Bill Act.  Today, she's explaining the no tax on tips deduction. If there is any part of this new tax law that you'd like to hear her cover, please let us know. No Tax on Tips Timalyn jumps right in to let listeners know that tips are still considered taxable income. In order for them to...

Episode 64: In this episode, Timalyn breaks down a hot topic from the newly passed One Big Beautiful Bill Act, the No Tax on Overtime Act, and what it really means for working taxpayers starting in 2025. There has been a lot of confusion online suggesting that overtime income is completely tax-free. But is that true? Not exactly. Timalyn explains how the law allows an above-the-line deduction for...