Understanding the 4 Most Common Business & Occupation (B&O) Tax Classifications in Washington State

The Basics The Washington State Business & Occupation (or B&O) tax is a tax that is imposed against a person or company that is engaged in certain business activities. The tax itself is measured by the value of products, gross proceeds of sales, or the gross income of a business and is included in a business’ overhead. Unlike a sales tax, the B&O tax is not imposed on the purchaser or customer. In Read More

Taxing Tips for the Restaurant Employer

In the previous blog about employee tips, we noted that our city is host to many restaurants with tantalizing dishes and wait-staffs that strive to make patrons feel welcome and comfortable; and that we reward the experience at a fine dining establishment with a tip.  While that blog post focused upon taxing tip responsibilities for employees, this month, I’d like to discuss the taxing tip responsibilities for the Read More

The Pros and Cons of IRS Installment Plans

If you are an individual or business owner with significant tax debt that you are financially unable to pay, you may be eligible to enroll in an installment agreement with the Internal Revenue Service. An installment agreement is essentially a payment plan that enables you to pay off your taxes over time. To qualify, you must file all required tax returns and disclose all of your assets and cash to the IRS. This is Read More

Taxing Tips for Restaurant Employees

Seattle possesses a wealth of delicious dining establishments with wait staff that really ensure customer satisfaction. As patrons, we reward this job well done with tips. Tips require special treatment when reporting for tax purposes. Both the employee and the employer of a tipping establishment have their own responsibilities for the accurate reporting of tips. This post covers employee responsibilities. Tips Read More

Payroll Taxes: 5 Common Mistakes for Businesses to Avoid

For many business owners, payroll taxes come with the cost of running a company and are an unavoidable task each year. However, there are ways to make your life easier, and there are mistakes that can make the process that much harder. Let’s examine 5 of the most common mistakes that you can easily avoid:   Filing payroll taxes late - While it might not seem like missing the deadline for payroll taxes is Read More

Musicians and the IRS

 Musicians and the Man Seattle is one of the nation’s cornerstones for music, and with good reason. It’s the birthplace of wildly popular acts, such as Soundgarden, Alice in Chains, Ann and Nancy Wilson of Heart, Pearl Jam, Macklemore and countless other musicians. It is home to legendary guitarists Jimi Hendrix and Kurt Cobain. The Emerald City also hosts a large pool of rising stars, like Malady of the Sevendials, Read More

Understanding Innocent Spouse Relief

Married couples get to enjoy a lot of key benefits when they file their tax return jointly, and it can even be a contributing factor as to why people decide to make their union legal in the first place. However, when one spouse decides to keep financial information from the other and misrepresents their situation when filing their taxes, needless to say, it creates a lot of problems. If you suddenly find yourself Read More

What to Do When the IRS Terminates Your Installment Agreement

Oh, no! You’ve gone and missed a payment and now the IRS has sent you Notice CP523, Installment Agreement Default Notice—Notice of Intent to Levy. What can you do? Not to worry. If your letter from the IRS is dated less than 30 days ago, you have time to call the toll-free number printed on the top of your letter and see what can be done to resolve the issue. Though you do have 30 days from the date of the notice, Read More

4 Factors an IRS Appeals Officer Considers During a Hearing

Owing money to the IRS can be a tough pill to swallow, but what can be even more challenging is the idea that they think you owe money when you actually don’t or when the IRS tries to collect the money from you unfairly without following its own administrative procedures.  If you’ve received a notification from the IRS that you have a debt to pay, or if the IRS has filed a Notice of Federal Tax Lien against you or Read More

The IRS Installment Agreement

Among the many ways taxpayers may resolve a tax debt with the IRS, the Installment Agreement is a popular choice.  Installment Agreements allow a taxpayer to make monthly payments towards a tax debt and often also reduce the amount of penalties and interest that must be paid. The IRS does set forth conditions that must be met to qualify for an agreement: All income tax returns must be filed, All employment Read More