Simplified Business Solutions

03/16/2026

ATTORNEY FEES COULD BE WORSE THAT THE LAWSUIT

Look, as a law firm we know attorneys are expensive. Our client was being sued for an obnoxious amount of money that he likely did not owe. We could have taken the case to trial and likely won. However, the cost would likely be in the 5 to 6 figures. We are extremely conscious of attorney fees. That is why as soon as we get a case, we look for procedural defects, mediation, any way to resolve the case as efficiently and effectively as possible. In this case we noticed a technical defect, and we were able to get the case dismissed right away, which saved the client tens of thousands in attorney fees. The Client is more than happy. As always, client focused and results driven as this case demonstrates.

03/02/2026

Over the past few weeks we settled over 3 Tax Court cases and resolved 2 IRS audits. This one stands out. The IRS claimed the Taxpayer owed over $2,200,000. It was from a personal form 1040 audit that blew up into all of his entities bringing in several corporate form 1120S and several partnership form 1065 returns into the audit, which the IRS audited the form 1065 as a TEFRA audit. This went to Tax Court. We were able to settle with the Taxpayer not owing over $2,200,000; he is getting a refund of over $150,000. Needless to say, they are happy.

01/14/2026

Tax Season is here again.

Form 1099s are generally due 2/2/2026. Further the IRS starts accepting income tax returns 1/26/2026.

09/25/2025

As promised. Continued year-end tax saving tips.

You may be able to take deductions that appear on Schedule 1, Part II of Form 1040. These deductions are available even if you don't itemize your deductions. Some of the more common deductions include:
Deduction for contribution to a health savings account, or HSA
Deductible portion of self-employment tax
Self-employed health insurance deduction
Alimony—depending on the date of divorce or separation agreement
IRA contribution—subject to other limitations
Student loan interest deduction
The deductions that appear on Schedule 1, Part II are considered above-the-line deductions and go into calculating your AGI.
It's important to realize these deductions don't apply to all taxpayers. A review of Schedule 1, Part II should be part of your year-end planning in order to leverage all available deductions.
Please let us know if you need help navigating these items.

09/24/2025

We love supporting our community 📚

💡Sponsor Spotlight💡

We want to extend our heartfelt appreciation to Simplified Business Solutions for their generous donation to our school! We truly value your contribution and commitment to Wilemon!

09/24/2025

We are so thankful to be nominated again for best accounting firm in Ellis County for 2025! Please go vote! You can find us under the finace category. Thank you so much for the continued support! 💙💚

https://www.waxahachietx.com/cr-dep-best-of/?event_token=24356a962ffbcd7denae

09/23/2025

YEAR END TAX SAVING TIPS!!

Yes, your favorite topic, how can I save on taxes. It is year end and now is the time to make some moves. We will discuss several things over the next few weeks. Let's start with 1:

Prepaying expenses such as medical deductibles, real estate taxes; any tax-deductible item. For instance, If you paid certain itemized deductions in in January 2025, consider paying itemized deductions in December 2025. This will allow you to double up on your itemized deductions. Sit down and plan your charitable contributions. Also, look at deductible subscriptions, insurance premiums, and professional fees. Prepaying these expenses allows you to bring forward deductions into the current financial year.

As always, if you have questions, we are here for you!

06/26/2025

Have you ever wondered of the different types of audits. Below are the 3:
Correspondence audit: The most common IRS audit, this typically is conducted by mail and sent for reasons such as missing information, small balances owed, or identity verification. (Note: Be aware that scammers have been sending fraudulent letters to collect funds from unsuspecting taxpayers. Identifying fakes isn't always easy, but typical red flags include demand for immediate payment, threats of jail time, and grammatical errors and misspellings. If you're unsure of a letter's authenticity, you can contact the IRS at 800-829-1040 or visit its website.
Office audit: In this type of audit, taxpayers receive a written summons to go to an IRS office to meet with an agent. This generally happens with more complex tax returns or if the return has multiple items being questioned.
Field audit: The most comprehensive type of audit, this in-person meeting typically occurs at the taxpayer's business or home to conduct a thorough examination of the return in question. These audits can often last several weeks or even months, depending on the issues being reviewed and the complexity of the tax return.
My experience, field audits were the most common until about 6 years ago. Now, with technology and staffing issues at the IRS, I see more correspondence audits. Unfortunately, my experience with correspondence audits is that everything is typically disallowed even if you provide the proper documentation. Therefore, I usually request a field or office audit when this happens and get better results.

05/22/2025

JUST OUT - MUCH WATCHED CASE

U. S. Supreme Court ruled Oklahoma can't launch taxpayer-funded religious charter school in a 4-4 ruling. Your thoughts.

04/15/2025

More on Reducing your Audit Risks
The biggest reason estate tax returns are audited at a high rate is because of undervalued assets. The IRS has valuation experts, and if they think the estate has valued its assets too low, an audit could happen. Therefore, when valuing assets that do not have a public market price such as real estate, art, or a closely held business, you should average the appraisal from two or three appraisers. Multiple appraisals can help if the value of an asset ever comes into question.

04/14/2025

Fear, Transference, Elation
These are typical emotions clients feel when dealing with the IRS. First, fear of losing everything. Second, IRS issues take a lot of time to resolve especially during and after Covid. It takes two to resolve a case, us working for you and the IRS. Unfortunately, the IRS does not work as fast as we and especially the client desires. The waiting usually leads to transference. We may be working on numerous IRS cases, but you have one case and that is the most important case to you. We get it. Then the results come in and usually they are better than expected, which leads to elation. We favorably resolved many cases already this year. Recently, we resolved two cases, which the client were so happy they broke down in tears. Words cannot express the gratitude this brings. Thank you for allowing us to work for you!!

03/28/2025

More on Minimizing Your Audit Risk
While your deductions may be well founded, some may nevertheless trigger a second look by the IRS. In particular, be mindful of:
Outsize charitable donations: The IRS flags charitable deductions that exceed the average donations of those at a similar income level.
Passive losses on a rental property: If the costs to operate a property exceed the rental income it generates, you may not be able to claim a loss.
Unqualified home-office deductions: Unless you're self-employed and conduct the majority of your business from your home, you cannot deduct any home-office expenses. People who work from home may assume they can take this deduction. Unfortunately, regular employees don't qualify, even if they pay out of pocket for all or part of their home-office setup.
In my experience, these items are hit hard by the IRS. Therefore, please have supporting documentation for any deduction on your tax return, especially those that are significant or subject to special rules.