Category: Blog

5 Ways to Handle Unpaid Payroll Taxes

5 Ways to Handle Unpaid Payroll Taxes

Back payroll taxes to the IRS can land you and your business in some huge problems. The IRS considers unpaid payroll taxes serious business and ignoring them can put you and your business in great jeopardy. The government agency will take every action possible to recover the outstanding amount including taking legal action against you and your business. The result can be imprisonment, hefty fines, and, in the worst case scenario, you can lose your business entirely. To avoid such a situation, you need to address unpaid payroll taxes immediately. Here are several ways you can successfully handle unpaid payroll

Read the full article…

What You Need to Know about the 2021 Tax Season

What You Need to Know about the 2021 Tax Season

Given that the world has taken a massive hit from the coronavirus, a lot has changed for the 2021 tax season. As always, it remains important to keep abreast with any changes to the tax code or filing guidelines so as not to fall aowl of the IRS. The tax day this year is Tuesday June 15, 2021, and it is recommended that you file your 2020 tax return by then. An IRS tax attorney can help you with all your filing requirements including things such as IRS installment agreement. Let’s have a look at everything you need to know

Read the full article…

Understanding the Impact of Biden’s Stimulus Proposals on Tax Credits for Families

Understanding the Impact of Biden's Stimulus Proposals on Tax Credits for Families

According to a report by The Washington Post, President Biden’s $1.9 trillion economic relief package provides approximately $3,000 per child to American families. Under the proposal, the IRS will provide for a credit of $3,600 per child under the age of six and $3,000 per child between the ages six to 17 over a year. The proposal increases the annual income of average Americans to more than $75,000, and for couples with joint income to more than $150,000. This will not only provide immense cash benefits to American families, but also help them cope with IRS problems by giving them

Read the full article…

A Look at Penalty Relief Due to Reasonable Cause

penalty relief due to reasonable cause

Sometimes the IRS sends penalty notices to taxpayers who fail to honor their tax obligations. Notices generally contain information relating to IRS penalties and interests, the amount of IRS penalty interest, and the amount of tax owed. Affected taxpayers can request IRS penalty abatement on the basis of a reasonable cause that is based on all the circumstances and facts around their situation. The IRS will consider abatement of penalties and interests for any reason that establishes that a taxpayer used all ordinary business prudence to meet their federal tax obligations but was unable to do so. Continuing on the

Read the full article…

All You Need to Know about Requesting an IRS Appeal

IRS appeal letter

There are many instances where taxpayers may feel the need to request an IRS appeal to resolve any tax disputes with the IRS. The IRS may include wrong facts on a notice, deny an offer in compromise request, or take inappropriate collection action against a taxpayer. Whatever the reason, if a taxpayer disagrees with the decision, they can reach out to the IRS office of appeals by filing a written protest and mailing it to the address mentioned on the notice explaining their appeal rights. Before contacting the IRS office of appeals, a taxpayer can boost chances of getting a

Read the full article…

Answering Top 5 Frequently Asked Questions about Unfiled Tax Returns

faqs about unfiled tax returns

Taxpayers are required by law to file their tax return for the year in which there is a filing requirement. Most taxpayers file their tax returns on time voluntarily but there are times when some fail to file their returns or pay their taxes. There can be many reasons for not-filing taxes but unfortunately, not filing can create serious problems for taxpayers. Failing to file your tax returns can be costly in terms of potential penalties and missing out on any refunds. Let’s look at answers to 5 commonly asked questions about unfiled tax returns. What happens if I ignore

Read the full article…

Understanding how the IRS Initiates Criminal Investigations

criminal investigations on taxpayers

The Criminal Investigation Division of the Internal Revenue Service conducts criminal investigations on taxpayers if they commit tax evasion or allegedly violate the Bank Secrecy Act, the Internal Revenue Code, and various money laundering statutes. If a taxpayer has committed tax evasion, the IRS can prosecute within six years, but if they have committed tax fraud, the IRS has unlimited time to prosecute the case. Continuing on the topic, in this blog post, we take a closer look at how the IRS initiates criminal investigations. Read on! IRS Special Agents Criminal investigations are initiated from information obtained from IRS revenue

Read the full article…

All You Need to Know about Payroll Taxes

Understanding Payroll Taxes

Every business in the United States must report employee payroll tax information on a quarterly and annual basis to the IRS. Using this information, the government reports the amount of 941/940 employment payroll taxes that are either withheld from employees and how much they owe the IRS. If a business fails to report its payroll taxes, it may have payroll tax problems. In this blog, we cover all you need to know more about payroll taxes. Payroll/Employment 940/941 Taxes Relief According to the US tax code and the IRS, a business operating in the country must pay Employee Federal Income

Read the full article…

All You Need to Know about IRS Cancelled Debt

Cancellation of Debt

Most taxpayers believe that the IRS only charges taxes on income from a regular job or business, stock sale, or sale of an asset, however, it may also levy income tax on canceled tax. According to tax rules specified by the IRS, if a taxpayer’s debt is canceled, discharged, or forgiven, they must include the canceled amount in their gross income and pay taxes on it unless they qualify for an exemption or exclusion. In case they haven’t paid taxes on the canceled debt and have received notice from the IRS, they must immediately seek IRS tax help from an

Read the full article…

Dealing with IRS Bank Levies

IRS Bank Levy Concerns

Dealing with the IRS about back taxes can be tricky although there is always a way out when you decide to take immediate action. The IRS has the authority to take money from your bank account in respect of outstanding taxes but avoids taking such strict actions unless you haven’t made any effort to resolve the tax issues and tax debt case. The IRS only resorts to aggressive tax collection actions when it does not receive any reply to multiple notices asking a taxpayer to get in touch. If you don’t respond, the IRS can levy and garnish money from

Read the full article…