Do you owe back taxes to the IRS? If so, you’re not alone. According to a recent report, an estimated 1 in 5 people who file returns for 2019 expect to owe the IRS and last year 24% of the people who filed tax returns owed money to the IRS. Taxpayers who are unable to pay all the taxes they owe at the time of filing can be in for some nasty surprises. Unpaid taxes can come with big problems including wage Read More
4 Payroll Tax Mistakes Business Owners Can Make
You wear many hats and have many responsibilities as a small business owner. While pursuing your ultimate goal of making your business profitable and sustainable, it’s normal that some duties and obligations get allocated to the backburner. Paying attention to payroll taxes for your employees can be one of these obligations, but running afoul or federal and state tax law can land you in hot water with governmental Read More
IRS Bank Levies: When “Yours” Becomes “Theirs”
When you were a kid, you probably had a piggy bank. As you filled it with your treasured coins, you understood that, once the piggy swallowed your hard-earned allowance, the money was safe inside until you decided to take it out and spend it. Ah, the naivete of youth. As a tax-paying adult, it’s important to understand the concept of a bank levy. Think of it this way: the IRS snatches up your piggy bank and all Read More
Fast Facts: The IRS Fresh Start Program
Don’t you wish you could hit the “reset” button on your unpaid taxes? If you could just go back to when they were first due and avoid all those expensive fees, penalties and interest, wouldn’t life be so much easier? With the IRS Fresh Start Program, you can do just that and more! Read on to find out more about this debtor-friendly program and don’t forget to schedule your consultation with the legal team at the Read More
Explaining Offers in Compromise
What if you find yourself unable to pay your full tax burden to the Internal Revenue Service? Or, let’s say you are able to, but paying your tax liability in full would create an extreme financial hardship on you. What can you do about that? Fortunately, the IRS offers something called an Offer in Compromise that may be available to you if you find yourself in these types of situations. If you are indeed eligible Read More
Understanding Section 179 Deductions
If you buy certain types of assets such as vehicles, machines, or cameras for your business’s use, you will qualify for tax deductions. These deductions are applied over the life of the property that you purchased to help offset the decreasing value of the asset. This concept of depreciation of assets is covered under Section 179 of the IRS tax code. Understanding how this section works and the deductions related to Read More
The Consequences of Owing Taxes to the IRS: Worst-Case Scenario
As Benjamin Franklin rightly said, “in this world, nothing can be said to be certain, except death and taxes.” Although the IRS wasn’t established until 1862, Franklin’s 1789 quote is timeless and still applies today: if you owe taxes, the government will use the full extent of the law to get the money they are owed. Penalties for non-payment of taxes are severe. Wage garnishments, liens, bank levies, seizure Read More
A Brief Overview of IRS Trust Fund Penalties
Even if you’ve dealt with collection agencies in the past, the experience won’t prepare you for the IRS. If you’re delinquent in paying your federal business taxes, it can levy your company assets, bank accounts, accounts receivable, and even your personal property. Many business owners shield themselves from personal liability for company debts by forming a corporation or LLC. While this strategy can prevent Read More
Seriously Delinquent Tax Debt: What Happens and What Can You Do?
The IRS doesn’t take halfway measures when it comes to collecting overdue taxes. It can garnish your wages, file a lien on your assets, and even liquidate them to satisfy your tax debt. Over three years ago, the IRS expanded its collection powers by adding the ability to limit, revoke, or deny the issuance of your passport if you have seriously delinquent tax debt. What Is Seriously Delinquent Tax Debt? Under Read More
Understanding the Difference Between Tax Evasion and Avoidance
The terms “tax evasion” and “tax avoidance” are often used interchangeably. Although a surface similarity exists (failure to remit the correct amount of tax due), one is a criminal offense and the other can only expose you to civil penalties at most. When deciding whether a taxpayer is guilty of tax evasion or avoidance, the IRS seeks to answer the question: Are they lying or hiding? What Is Tax Evasion? Tax Read More
