When is a business owner liable for the Trust Fund Penalty if he uses a payroll company?
- September 20th, 2011
- David Greene
- Comments Off on When is a business owner liable for the Trust Fund Penalty if he uses a payroll company?
The Trust Fund Penalty is charged against an owner or other responsible party in a company who does not pay the company’s payroll taxes to the IRS. It consists of the portion of payroll taxes withheld from the employee’s paycheck. An employer that uses a payroll service provider (PSP) or Professional Employer
What tax records should be kept and for how long?
- September 13th, 2011
- David Greene
- Comments Off on What tax records should be kept and for how long?
If one is audited the IRS will not accept the taxpayer’s word as proof of expenses. They want to see backup documents. These backup documents should be kept for all items claimed as deductions on Schedule A or Schedule C, including receipts, invoices, mileage logs, etc. You should also keep proof of all income,
How Does the IRS Find Someone Who Has Moved?
- September 6th, 2011
- David Greene
- Comments Off on How Does the IRS Find Someone Who Has Moved?
If a taxpayer owes taxes for previous years, the IRS will begin sending him notices about the delinquent taxes to his last known address as stated on his most recent tax return. What is the taxpayer moves to another city or state. Does he escape these taxes? Unfortunately, there is no question that the federal tax liability will follow the taxpayer wherever he moves.
What is an IRS Lien?
- August 23rd, 2011
- David Greene
- Comments Off on What is an IRS Lien?
When the IRS assesses a tax against a taxpayer (income, payroll or other tax) a lien automatically arises by law to secure the payment of the tax. If the tax remains unpaid, the IRS will almost always record the lien at the Courthouse in which the taxpayer lives or owns property.
When can you file an Offer in Compromise based on Doubt as to Liability?
- August 18th, 2011
- David Greene
- Comments Off on When can you file an Offer in Compromise based on Doubt as to Liability?
If you are charged with delinquent taxes that you genuinely feel you do not owe, there is a process you can use to challenge the tax. It is the Offer in Compromise based on “Doubt As To Liability”. There is no filing fee for this Offer. As the name implies, you state to the IRS that you do not think you owe the tax. However, you
User Fee for an Installment Agreement
- August 9th, 2011
- David Greene
- Comments Off on User Fee for an Installment Agreement
If a taxpayer cannot pay his delinquent or current taxes in full or within 120 days, he can enter into a payment plan with the IRS to full-pay the tax over time. This is called an Installment Agreement. The IRS used to charge a user fee of $43.00 to set up the account for the Installment Agreement. However,
Procedure After Denial of Offer in Compromise
- August 2nd, 2011
- David Greene
- Comments Off on Procedure After Denial of Offer in Compromise
When an Offer in Compromise is denied, one has several options to proceed. If the Offer Specialist is correct and the Offer cannot stand, one can simply abandon the Offer process and negotiate an Installment Agreement to full-pay the tax.
Are Delinquent Taxes Dischargeable in Bankruptcy?
- July 26th, 2011
- David Greene
- Comments Off on Are Delinquent Taxes Dischargeable in Bankruptcy?
The current bankruptcy law ushered in sweeping changes in how bankruptcies are handled and what can be discharged. It is a very restrictive law. As under the previous law, some taxes will be dischargeable and some will not. Perhaps the biggest restriction is that many people who would have qualified to file for
What is a Dissipated Asset
- July 12th, 2011
- David Greene
- Comments Off on What is a Dissipated Asset
When negotiating an Offer in Compromise with the IRS, they will often say that you have a dissipated asset and they add the value of that asset (usually cash) to the amount that you have offered. A Dissipated Asset occurs when (1) you have delinquent taxes and (2) you obtain a sum of money from any source and (3) you spend that money on something other than the delinquent taxes.
How to decide when a worker is an Independent Contractor or Employee
- June 28th, 2011
- David Greene
- Comments Off on How to decide when a worker is an Independent Contractor or Employee
Many small business owners like to save the hassle of withholding taxes from the paychecks of their workers, so they pay them their entire pay and issue 1099’s at the end of the year instead of W-2’s. Are there any rules that determine when one can do this, or can each business owner decide on his own?