Income Taxes

Understanding IRS Enrolled Agents: Your Solution to Tax Problems

Hans Scheil

July 17, 2024

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Introduction

In today’s Cardinal lesson, we dive deep into a critical aspect of financial management that many find daunting: tax problems. Whether you’ve received a daunting notice from the IRS or find yourself responsible for a deceased relative’s tax affairs, understanding your options and knowing who to turn to can make all the difference. Today, we introduce a pivotal figure in this arena: the IRS enrolled agent.

What is an IRS Enrolled Agent?

An IRS enrolled agent is not just a tax preparer but a certified professional who has earned the privilege to represent taxpayers before the IRS. This designation is the highest credential awarded by the IRS, qualifying agents to handle a wide array of tax matters, including tax preparation, negotiating with the IRS on your behalf, resolving tax liens, wage garnishments, levy releases, and more.

Meet Chris Cherico: An Expert in Tax Problem Resolution

Chris Cherico, our featured IRS enrolled agent, brings years of experience and expertise to the table. He specializes in resolving complex tax issues and providing strategic solutions that alleviate the burden on individuals and families navigating difficult financial situations.

Beyond Problem Resolution: Collaborative Financial Planning

While Chris excels in tax problem resolution, his collaboration with Cardinal Financial Planning extends beyond fixing past mistakes. By partnering with financial planners like Hans Scheil and Tom Griffith, Chris ensures clients receive comprehensive financial guidance. This collaboration is pivotal for clients looking to navigate tax complexities while planning for their financial future.

Conclusion

Navigating IRS tax issues requires expertise, strategy, and a thorough understanding of IRS procedures. Chris Cherico, as an IRS enrolled agent, exemplifies these qualities, offering clients not just solutions to tax problems but peace of mind. Whether you’re facing unfiled returns, IRS audits, or state tax disputes, Chris’s services provide a clear path forward.

To learn more about how Chris can assist you or to schedule a consultation, visit his website or contact him directly. For comprehensive financial planning and tax guidance, Cardinal Financial Planning stands ready to assist. Thank you for joining us today as we explored the vital role of IRS enrolled agents in resolving tax challenges and securing financial stability

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Income Taxes

Understanding IRS Enrolled Agents: Your Solution to Tax Problems

Hans Scheil

July 17, 2024

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Sign Up For Our Newsletter To Receive Weekly Updates.

Understanding the Upcoming 2026 Income Tax Increase: What You Need to Know

A Brief History of the Tax Cuts and Jobs Act (TCJA)

In today’s Cardinal lesson, we’re discussing the significant changes coming to income tax rates in 2026. This isn’t a proposal but a law already set in motion. The Tax Cuts and Jobs Act (TCJA), passed in 2017 and effective from January 1, 2018, brought about substantial reductions in income taxes. However, these reductions were only funded for eight years, meaning they will expire at the end of 2025.

What Changes to Expect in 2026

As of January 1, 2026, the tax rates will revert to their 2017 levels, adjusted for inflation. Key changes include:

The 12% bracket will increase to 15%.
The 22% bracket will rise to 25%.
The top rate of 37% will revert to 39.6%.

Not Just a Proposal

It’s crucial to understand that this change is already the law. Many people mistakenly believe that the tax rate increases are still under discussion. However, unless Congress enacts new legislation, these higher rates will take effect as scheduled.

Implications for Your Financial Planning

Impact on IRAs and 401(k)s

With the current lower tax rates, now is the time to consider strategies like Roth conversions. By converting funds from a traditional IRA to a Roth IRA now, you can potentially save a significant amount in taxes over the long term.

Why Planning Ahead is Crucial

For individuals with substantial retirement savings, understanding these changes is vital for effective tax planning. The window to take advantage of the current lower tax rates is closing, and planning ahead can make a significant difference.

Case Studies and Planning Opportunities

Hans Scheil and Tom Griffith discuss specific case studies and planning strategies in our latest video. These examples illustrate how different scenarios can be managed effectively:

Case Study 1: A married couple with an adjusted gross income of $150,000 in 2024 can convert part of their IRA to a Roth IRA, taking advantage of the lower current tax rates.
Case Study 2: High-net-worth individuals with large IRAs can save substantial amounts in taxes by planning conversions over the next two years.

Estate Tax Considerations

The TCJA also doubled the estate tax exemption, which will revert in 2026. This change can significantly impact high-net-worth individuals, making estate planning more crucial than ever.

Action Steps to Take Now

Review Your Current Tax Situation: Analyze how the upcoming changes will affect your finances.
Consider Roth Conversions: Take advantage of the lower tax rates before they expire.
Plan for Estate Taxes: Assess your estate plans in light of the changing exemptions.

Conclusion

The changes coming in 2026 are significant, but with proper planning and informed decision-making, you can navigate these changes effectively. Watch our video for more detailed insights and personalized advice.

Get In Touch

Contact us today with any questions, concerns, or just to stay connected.

Have questions? Contact us today.

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