1099 vs. W-2: The Tax Mistake Freelancers Make That Triggers IRS Trouble with Nelson

IRS Fined Millions for Taxpayers to Claim Their Money Back Before the July 10 Deadline

In this episode, Amro Badran [https://www.linkedin.com/in/amro-badran/] sits down again with Christopher Nichols [https://www.linkedin.com/in/christopher-nichols-ea-b1b515355/], Director of Tax Resolution at Badran Tax [https://www.linkedin.com/company/badrantax/] and a retired IRS Revenue Officer and Appeals Settlement Officer, to explore the major tax court ruling that could impact millions of taxpayers who were charged IRS penalties and interest during the COVID-19 pandemic. They explain how a recent court decision challenged the IRS's authority to assess certain penalties during the national emergency period and what taxpayers can do now to protect their right to a possible refund. The discussion features tax professionals explaining the background of the Kwong Case, the IRS appeal process, and the steps individuals and business owners should take before the filing deadline. They provide practical guidance on reviewing IRS transcripts, identifying eligible penalties, and submitting a protective refund claim using Form 843. Expect to Learn: * What the Kwong Case is and why it could affect taxpayers nationwide. * Which tax years may qualify for penalty and interest refunds. * How to check your IRS transcripts for eligible penalties. * The purpose of Form 843 and how to file a protective refund claim. * Why taxpayers must act before the July 10, 2026 deadline. Episode Breakdown with Timestamps: * [00:00] – Teaser * [00:44] – Introduction: The Kwong case and its benefit for taxpayers * [02:21] – Protective refund claim must be filed by July 10, 2026 * [04:28] – Look for FTF (failure to file), FTP (failure to pay), failure to deposit codes * [07:11] – IRS appealed; filing the claim preserves your rights regardless of appeal outcome * [08:09] – Applies to personal income, business, payroll, and special assessment returns * [08:39] – Summary: if you were charged penalty/interest for 2019‑2022, file a claim – it’s your money Follow Christopher Nichols: 👉 LinkedIn: https://www.linkedin.com/in/christopher-nichols-ea-b1b515355/ [https://www.linkedin.com/in/christopher-nichols-ea-b1b515355/] 🔗 More from Tax Resolution: 👉 Website: https://badrantax.com/ [https://badrantax.com/] 👉 LinkedIn:https://www.linkedin.com/in/amro-badran/ [https://www.linkedin.com/in/amro-badran/] 👉 Instagram:https://www.instagram.com/badrantax/ [https://www.instagram.com/badrantax/] 👉 Facebook:https://www.facebook.com/badrantax [https://www.facebook.com/badrantax] 👉 TikTok: https://www.tiktok.com/@badrantax [https://www.tiktok.com/@badrantax] Follow the Podcast: 👉 YouTube: https://www.youtube.com/@badrantax [https://www.youtube.com/@badrantax] 👉 Apple Podcasts: https://podcasts.apple.com/us/podcast/tax-resolution-the-badran-way/id1858507497 [https://podcasts.apple.com/us/podcast/tax-resolution-the-badran-way/id1858507497] 👉 Spotify: https://open.spotify.com/show/4Rz4nHO16Z0LJs5b9b60lb?si=aee5a07c81a74ae3 [https://open.spotify.com/show/4Rz4nHO16Z0LJs5b9b60lb?si=aee5a07c81a74ae3]

Owe money to the IRS? Look out for these letters in your mailbox!

In this episode of Tax Resolution, host Amro Badran [https://www.linkedin.com/in/amro-badran/] sits down with Christopher Nichols [https://www.linkedin.com/in/christopher-nichols-ea-b1b515355/], Director of Tax Resolution at Badran Tax, to answer one of the most common tax season concerns: what happens if you file your tax return and owe money to the IRS but cannot pay. The conversation walks through the full IRS collection process, explaining each notice a taxpayer may receive and what actions can follow. From the first CP14 letter to the critical certified Letter 11 or 1058, this episode breaks down the timeline, the risks, and the rights taxpayers have before enforcement actions such as wage garnishments or bank levies begin. Christopher Nichols is a former IRS professional with over 20 years of experience as a Revenue Officer and four years as an Appeals Settlement Officer. With direct experience handling collections, levies, and appeals, he provides inside knowledge on how the IRS processes unpaid balances, how enforcement actions are triggered, and what legal rights taxpayers have during the collection process. His expertise offers practical guidance for anyone facing IRS debt. EXPECT TO LEARN 1. The step by step IRS notice process, including CP14, CP501, CP503, and CP504 2. Why certified Letter 11 or 1058 is the most important notice to respond to 3. What Collection Due Process rights are and how they protect you 4. What happens if you miss the 30 day deadline to file for a hearing 5. Why penalties and interest can quickly increase your original tax balance EPISODE BREAKDOWN WITH TIMESTAMPS 1. [00:00] – Teaser 2. [00:48] – Welcome & Introduction to IRS Final Notices Explained 3. [03:14] – The Critical Letters: LT 11 and 1058 – Certified Mail and CDP Rights 4. [07:47] – Missed the Deadline? The Equivalent Hearing and Lost Rights 5. [11:15] – Offer in Compromise Under Appeals: A Second Chance 6. [13:56] – The Cost of Delay: Penalties, Interest, and Growing Balances 7. [14:58] – Closing Summary: Don't Ignore the Notices Follow Christopher Nichols: 👉 LinkedIn: https://www.linkedin.com/in/christopher-nichols-ea-b1b515355/ [https://www.linkedin.com/in/christopher-nichols-ea-b1b515355/] 🔗 More from Tax Resolution: 👉 Website: https://badrantax.com/ [https://badrantax.com/] 👉 LinkedIn: https://www.linkedin.com/in/amro-badran/ [https://www.linkedin.com/in/amro-badran/] 👉 Instagram: https://www.instagram.com/badrantax/ [https://www.instagram.com/badrantax/] 👉 Facebook: https://www.facebook.com/badrantax [https://www.facebook.com/badrantax] 👉 TikTok: https://www.tiktok.com/@badrantax [https://www.tiktok.com/@badrantax] Follow the Podcast: 👉 YouTube: https://www.youtube.com/@badrantax [https://www.youtube.com/@badrantax] 👉 Apple Podcast: https://podcasts.apple.com/us/podcast/tax-resolution-the-badran-way/id1858507497 [https://podcasts.apple.com/us/podcast/tax-resolution-the-badran-way/id1858507497] 👉 Spotify: https://open.spotify.com/show/4Rz4nHO16Z0LJs5b9b60lb?si=aee5a07c81a74ae3 [https://open.spotify.com/show/4Rz4nHO16Z0LJs5b9b60lb?si=aee5a07c81a74ae3]

1099 vs. W-2: The Tax Mistake Freelancers Make That Triggers IRS Trouble with Nelson

In this episode, host Amro Bandan [https://www.linkedin.com/in/amro-badran/] and Nelson Drasner [https://www.linkedin.com/in/nelson-drasner-35943ab8/], Enrolled Agent, discuss the critical differences between 1099 and W-2 tax classifications. Many people mistakenly think they are 1099 employees when, in fact, they may be self-employed contractors. This episode clears up confusion and explains how these differences impact taxes, deductions, and overall tax strategy. Nelson is a tax expert with over 20 years of experience as an IRS revenue agent, specializing in auditing self-employed individuals, businesses, and tax returns. His expertise is crucial for understanding how the IRS handles self-employed individuals and the tax advantages and pitfalls of being a 1099 contractor versus a W-2 employee. EXPECT TO LEARN 1. Key differences between a 1099 contractor and a W-2 employee 2. Tax deductions available to self-employed individuals that W-2 employees cannot claim 3. What expenses self-employed people can deduct, including home office and vehicle-related expenses 4. The importance of paying estimated quarterly taxes when self-employed 5. What happens if you misuse business expenses or make deductions incorrectly 6. How employees and contractors handle tax payments differently EPISODE BREAKDOWN WITH TIMESTAMPS 1. [00:00] – Teaser 2. [00:35] – Welcome & Introduction to Tax Resolution: The Badran Way 3. [02:21] – W-2 Explained: Salary, Withholding, and Employer Taxes 4. [06:35] – Vehicle Deductions: Ordinary, Necessary, and Not Excessive 5. [09:32] – Uber/Lyft Drivers: Fuel, Repairs, and Customer Supplies 6. [11:14] – Retirement Accounts for the Self-Employed: IRAs and Deductions 7. [13:16] – Summary: Employee vs. Self-Employed – Key Takeaways Follow Nelson Drasner: 👉 LinkedIn: https://www.linkedin.com/in/nelson-drasner-35943ab8/ [https://www.linkedin.com/in/nelson-drasner-35943ab8/] 👉 Company’s LinkedIn: https://www.linkedin.com/company/badran-tax-consultants-corp/ [https://www.linkedin.com/company/badran-tax-consultants-corp/] 🔗 More from Tax Resolution: 👉 Website: https://badrantax.com/ [https://badrantax.com/] 👉 LinkedIn:https://www.linkedin.com/in/amro-badran/ [https://www.linkedin.com/in/amro-badran/] 👉 Instagram:https://www.instagram.com/badrantax/ [https://www.instagram.com/badrantax/] 👉 Facebook:https://www.facebook.com/badrantax [https://www.facebook.com/badrantax] 👉 TikTok: https://www.tiktok.com/@badrantax [https://www.tiktok.com/@badrantax] Follow the Podcast: 👉 YouTube: https://www.youtube.com/@badrantax [https://www.youtube.com/@badrantax] 👉 Apple Podcast: https://podcasts.apple.com/us/podcast/tax-resolution-the-badran-way/id1858507497 [https://podcasts.apple.com/us/podcast/tax-resolution-the-badran-way/id1858507497] 👉 Spotify: https://open.spotify.com/show/4Rz4nHO16Z0LJs5b9b60lb?si=aee5a07c81a74ae3 [https://open.spotify.com/show/4Rz4nHO16Z0LJs5b9b60lb?si=aee5a07c81a74ae3]

IRS Can Take Your Passport Over $66K in Taxes with Christopher

In this episode of Tax Resolution, Christopher Nichols [https://www.linkedin.com/in/christopher-nichols-b1b515355/] returns to discuss an important and often overlooked aspect of tax debt: how the IRS can take action against your passport. The host and tax expert explore the details of how unpaid taxes can lead to passport restrictions, what taxpayers need to know, and how to resolve the issue. This episode is vital for anyone dealing with significant tax debt or planning international travel. Christopher is a seasoned tax resolution expert and former IRS revenue officer. With extensive experience handling complex tax situations, Christopher offers valuable insight into the IRS’s authority and the steps taxpayers can take to avoid passport issues due to unpaid taxes. EXPECT TO LEARN 1. How the IRS collaborates with the State Department to freeze or revoke passports for taxpayers with significant tax debt 2. The specific threshold for passport action and how much you need to owe 3. The steps taxpayers can take to resolve their tax debt and unfreeze their passport 4. Why contacting the IRS directly is essential for resolving passport issues 5. The importance of maintaining good records, including passport details, in case of an issue 6. How IRS payment plans, offers in compromise, and currently not collectible statuses can help prevent passport restrictions EPISODE BREAKDOWN WITH TIMESTAMPS 1. [00:00] – Teaser 2. [00:38] – Introduction: Can the IRS Revoke or Block Your Passport? 3. [01:59] – The Process: AI-Driven Indicators & Passport Delinquent Holds 4. [04:09] – Travel Considerations: Valid Passports vs. Renewal Restrictions 5. [06:33] – Alternative Resolution: "Currently Not Collectible" Hardship Status 6. [08:02] – Important Nuance: Resolution Required Even If Balance Drops Below $66k 7. [09:46] – Closing & Thanks Follow Christopher Nichols: 👉 LinkedIn: https://www.linkedin.com/in/christopher-nichols-b1b515355/ [https://www.linkedin.com/in/christopher-nichols-b1b515355/] 🔗 More from Tax Resolution: 👉 Website: https://badrantax.com/ [https://badrantax.com/] 👉 LinkedIn:https://www.linkedin.com/in/amro-badran/ [https://www.linkedin.com/in/amro-badran/] 👉 Instagram:https://www.instagram.com/badrantax/ [https://www.instagram.com/badrantax/] 👉 Facebook:https://www.facebook.com/badrantax [https://www.facebook.com/badrantax] 👉 TikTok: https://www.tiktok.com/@badrantax [https://www.tiktok.com/@badrantax] Follow the Podcast: 👉 YouTube: https://www.youtube.com/@badrantax [https://www.youtube.com/@badrantax] 👉 Apple Podcast: https://podcasts.apple.com/us/podcast/tax-resolution-the-badran-way/id1858507497 [https://podcasts.apple.com/us/podcast/tax-resolution-the-badran-way/id1858507497] 👉 Spotify: https://open.spotify.com/show/4Rz4nHO16Z0LJs5b9b60lb?si=aee5a07c81a74ae3 [https://open.spotify.com/show/4Rz4nHO16Z0LJs5b9b60lb?si=aee5a07c81a74ae3]

Don’t File Your 2025 Tax Return Until You Know These IRS Changes with Nelson

In this episode, Amro Badran [https://www.linkedin.com/in/amro-badran/] speaks with Nelson Drasner [https://www.linkedin.com/in/nelson-drasner-35943ab8/] to break down the key tax law changes that will affect the 2025 tax filing season. With sweeping updates on deductions, credits, and filing thresholds, this episode is essential viewing for anyone preparing to optimize their 2025 tax return. Nelson walks through the nuances of each change, clarifies common misconceptions, and shares practical advice to help taxpayers file accurately and efficiently. Nelson is a veteran in tax law and personal finance with years of experience advising individuals and families on tax preparation and planning. Known for his candid insights and no-nonsense approach, Nelson returns to the show by popular demand to demystify the latest changes to the U.S. tax code and help listeners make informed financial decisions. EXPECT TO LEARN 1. The new standard deduction thresholds for single and married filers in 2025. 2. How overtime pay deductions will impact taxable income. 3. A new deduction for car loan interest with the U.S. made car requirement. 4. What the $40,000 property tax deduction means for homeowners. 5. Tips on how to avoid IRS audits and get your refund faster by filing correctly. EPISODE BREAKDOWN WITH TIMESTAMPS 1. [00:00] – Teaser 2. [00:54] – Introduction of Tax Expert Nelson Drazner 3. [01:45] – Standard Deduction Increase for 2025 4. [02:39] – Understanding the Overtime Pay Deduction 5. [03:36] – New Deduction for Personal Car Loan Interest 6. [04:32] – Additional Deduction for Taxpayers Over 65 7. [05:47] – Increased Cap for Itemized Property Tax Deductions 8. [06:30] – Recommendation to File Early for Faster Refunds 9. [07:51] – Closing Remarks and Thanks Follow Nelson Drasner: 👉 LinkedIn: https://www.linkedin.com/in/nelson-drasner-35943ab8/ [https://www.linkedin.com/in/nelson-drasner-35943ab8/] 👉 Company’s LinkedIn: https://www.linkedin.com/company/badran-tax-consultants-corp/ [https://www.linkedin.com/company/badran-tax-consultants-corp/] 🔗 More from Tax Resolution: 👉 Website: https://badrantax.com/ [https://badrantax.com/] 👉 LinkedIn:https://www.linkedin.com/in/amro-badran/ [https://www.linkedin.com/in/amro-badran/] 👉 Instagram:https://www.instagram.com/badrantax/ [https://www.instagram.com/badrantax/] 👉 Facebook:https://www.facebook.com/badrantax [https://www.facebook.com/badrantax] 👉 TikTok: https://www.tiktok.com/@badrantax [https://www.tiktok.com/@badrantax] Follow the Podcast: 👉 YouTube: https://www.youtube.com/@badrantax [https://www.youtube.com/@badrantax] 👉 Apple Podcast: https://podcasts.apple.com/us/podcast/tax-resolution-the-badran-way/id1858507497 [https://podcasts.apple.com/us/podcast/tax-resolution-the-badran-way/id1858507497] 👉 Spotify: https://open.spotify.com/show/4Rz4nHO16Z0LJs5b9b60lb?si=aee5a07c81a74ae3 [https://open.spotify.com/show/4Rz4nHO16Z0LJs5b9b60lb?si=aee5a07c81a74ae3]