For both business owners and consumers, taxes make buying and selling things expensive. It’s one of those facts of life. There are many different tax laws that have to be complied with at both the state and federal level, which sometimes makes it difficult to figure out how much things actually cost. As consumers, we’re most used to sales taxes calculated on the total cost of goods or services at checkout. But as a Read More
Reasonable Cause for Abatement of Penalties
One of the most common and costly problems taxpayers encounter is penalties and interest that the IRS can add onto original tax amounts. The IRS can impose penalties for filing your tax return late, paying your taxes after the due date, and failing to deposit estimated tax payments. If they are not paid, penalties and interest can double your IRS bill in about seven years. One way that you can get these penalties Read More
Facing an IRS Audit? Take These 3 Steps Immediately
Whenever you file your taxes, there is always that part of you that worries about getting audited. This is particularly true if you run a business, because your tax returns are often much more involved and require much more detail than if you are single person who only needs to file a 1040-EZ. So what should you do if you receive the dreaded audit notice from the IRS? What can you do to look better to the IRS during Read More
When the IRS Can Take Your Passport Away
Every year, thousands of people take trips to destinations outside of the United States, and the purpose of their journeys vary—business, an exotic vacation, a desire to explore the remnants of past cultures, an admiration for medieval architecture, a religious pilgrimage to a holy city, etc. Most international travel requires the use of a passport. While most people are aware that the IRS can levy bank accounts, Read More
Understanding Your Options if You’re in Debt to the IRS
Every year, there are a large number of people who can’t afford to pay the IRS all the tax debts that they owe. Even though the quickest solution for your overdue taxes is to pay the full amount right away, sometimes circumstances prevent that from happening. The unfortunate truth about IRS debts is that the interest will continue to accrue on what you owe, even as you pay it down, and the penalties don’t go away. Read More
Tax-related Identity Theft
Identity theft. For many of us, it is something really don’t know much about, but that we dread – knowing that it can wreak havoc on our lives. Thankfully, our modern banking institutions are well-equipped to combat banking fraud, and we have many services that render help when our identities have been compromised. But what happens when you’re the victim of tax-related identity theft? In today’s blog, I will discuss Read More
What Does it Mean if the IRS Selects Me for an Audit?
The IRS has three years to audit tax returns. This means that you might not be in the clear even if it’s been a few years since you filed a tax return and you haven’t heard from the IRS. Generally, the IRS will audit an account if it finds a significant understatement of income. If it does, then it could look back even further than three years, though not by more than six. But what do you do if the IRS selects you Read More
The Basics of a Business Plan
I've written many blogs discussing tax issues relating to individuals and small businesses. Today, I’d like to focus on restaurants and discuss one of the most important and essential items for opening a restaurant, the business plan. A business plan is your road map to navigating the rises, falls, and unexpected curves in operating your restaurant. In this blog, I will briefly go over what you should include in Read More
How Do I Remove a Federal Tax Lien on My Property?
A federal tax lien is where the government has a legal claim against your property because you did not pay a tax debt. The purpose of the lien is to protect the government’s interest in all your property, including real estate, personal property, and financial assets. Tax liens are created automatically once the IRS assesses your tax liability, sends you a bill that explains what you owe, and you fail or refuse to Read More
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
