All You Need to Know About IRS Notice CP3219A

 

Sometimes taxpayers receive an unexpected letter from the Internal Revenue Service (IRS). Many taxpayers get stressed out by such notices. However, there is nothing to panic about. You should have proper knowledge about IRS notices and the steps you can take after receiving one.

Here we are discussing IRS Notice CP3219A, which is the IRS Notice of Deficiency. In simple terms, this notice indicates that you owe an additional payment to the IRS. In most cases, this situation arises when the IRS receives information from a third party about your income standing.

The good thing is that this notice is really like a proposal. You have the option to agree or disagree with this notice. If you agree, then you can send in the extra payment. But if you disagree with the notice, then you can file a petition. Taxpayers have their own legal rights, and they can take immediate action whenever necessary.

A Short Guide To Doing Your Taxes As An Artist

 

Many people don’t get an opportunity or platform to earn a living from their talent or artwork. There is nothing better than turning your passion into a profession. There are many perks of working as an artist and making money. But along with that, it also adds on some responsibilities, such as managing your finances, profit and loss reporting, transaction bookkeeping, and taxes. Let’s quickly learn what an artist should know about taxes.

●     When you start earning as an artist, it would mean you have a profit motive. Now, you will have to behave like a business. You can be a painter, musician, sand artist, singer, or an actor; whatever. But from the moment you start practicing your art for money, then you must start behaving like a business.

 

●     Keep track of your expenses and know the expenses that you can deduct. As an artist, some of your expenses, like art supplies, studio rent, phone, and internet bills are deductible. And, if you spend money on research like museum trips, art gallery visits, or fairs, it will also fall under a deductible expense category.

●      As a professional artist, you should keep a record of all your receipts, invoices, and bills. Also, don’t mix your personal and professional expenses. Open and use a separate bank account. Whatever you spend for business purposes should be used from the business account only.

The final word

When you decide to become a professional artist and earn money from your artwork, consult with an accountant. You can also hire an expert who can help you in tax preparation for artists. If you don't have much knowledge about finances and taxes, then taking professional assistance becomes necessary. You will have to accept that art is now not just your passion but also the source of your income.