Reasonable Compensation for S Corps is something the IRS began looking at for corporation compliance back in 2005. The IRS is attempting to penalize shareholders who receive inadequate wage compensation for their role. They have conducted a study and gathered information on this matter. The IRS will make a determination on what reasonable compensation should… Read More
In IRS adopted the Taxpayer’s Bill of Rights in 2014. Making taxpayers aware of these rights is vitally important for the taxpayers’ well-being. These ten rights assist taxpayers in their interactions with the IRS. They also provide clarity on the IRS’s powers and limitations when it comes to handling taxpayers’ taxes. Even though the taxpayer… Read More
The average person doesn’t think about payroll taxes as they would income tax or sales tax. Business owners know the importance and impact it has on their business and possibly on their personal tax situation. Payroll taxes are a major reason businesses and their owners fall into serious tax issues. Many times, businesses find that… Read More
An area that extends beyond merely monitoring income and expenditures is the management of a hobby loss assessment. Here, you must make a determination regarding whether you possess a valid business or merely a hobby. Is it a legitimate business with numerous deductible expenses, or just a hobby with limited deductions based on hobby income?… Read More
Filing for bankruptcy might not be the best way to resolve tax debt. But, depending on your individual circumstance, bankruptcy might be the best option. Change your mind that bankruptcy is only negative and ruins your credit. Instead, think about how it can help you with your current tax problem, relieve stress, and get you… Read More
Here are two collection alternatives that are available and will provide some breathing room and relieve stress. We will cover the various installment agreements and the IRS currently not collectible status when experiencing IRS financial hardship. A previous blog discussed the offer-in-compromise, and we will discuss bankruptcy in the future. Not being able to fully… Read More
When taxpayers get a notice for an Intent to Levy, they might wonder, what is a federal tax levy. After feeling uneasy, they will either worry about what to do or choose to ignore it for the time being. We will cover what happens when choosing to respond or not. What is a federal tax… Read More
People view the IRS as an unrelenting force in collecting tax debt. But compared to the State tax agencies, they are much easier and fair to deal with. They have a process to give taxpayers enough time and opportunities to follow federal tax laws without being heavy handed. Eventually, after many warnings, the IRS will… Read More
The IRS has a process to go about collecting taxes owed by the taxpayer. The IRS does not spring about levies, liens, garnishments, and seizure of property without fair warning. Generally, taxpayers who get into issues with the IRS, failed to file tax returns or ignored the IRS letters for payment. Let’s step through the… Read More
The IRS has a rather popular program for settling tax debt, the OIC program. Many people mistakenly believe that anyone can apply for this program and negotiate tax debts for pennies on the dollar. This can be a very good program for those who qualify and can pay the Offer amount. Many taxpayers are unable… Read More