If It’s Not Documented, It’s Not Done Right
If It’s Not Documented, It’s Not Done Right
Category:
Tax Resolution
The VCSP Way To Change Independent Contractors into Employees
What is VCSP? You have read horror stories about how the IRS audits business owners and deems their 1099 independent contractors to be W-2 employees—and then assesses tens (or hundreds) of thousands of dollars in back payroll taxes, interest, and penalties. Are you one of those horror stories? Okay, let’s say you are one …
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I Got An IRS Letter 6316, Now What?
Taxpayers may find themselves in the unfortunate situation of opening their mailboxes to an IRS examination letter. The IRS Letter 6316 (“Letter 6316”) is one such letter. The IRS issues these particular letters as part of its National Research Program, and the IRS is certainly issuing them—I have spoken with multiple taxpayers who have received …
IRS Crackdown On Payroll Taxes Continues To Increase
On May 10th, our friend and one of our mentors, Attorney Eric Green, and IRS Deputy Commissioner Darren Guillot spoke at the NYU Tax Controversy Forum where Darren dropped the bombshell that the IRS Revenue Officers had been trained to trace the unpaid trust taxes in payroll trust fund reviews, and if those funds …
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You Just Got An IRS CP2000 Notice, Now What?
You might receive an IRS Notice CP2000 (“CP2000”) in the mail. The IRS issues these particular notices to taxpayers based on discrepancies between tax return reporting and third-party reporting. Taxpayers must pay attention to these notices, as well as others, and understand their rights and responsibilities with respect to each. Our firm has previously …
Tax Professional Reliance Defense For IRS Tax Penalties
IRS Tax Penalties and the Tax Professional Reliance Defense No one wants to pay federal taxes. And this truism applies more so with respect to federal tax penalties. Accordingly, clients often call upon their tax professionals to request a waiver or abatement of any asserted penalties. Chief among the waiver or abatement defenses is …
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A Payroll Nightmare, Don’t Let It Happen To You
Don’t let this payroll nightmare happen to you. Here’s what happened to Mr. Kazmi. First, a little background. Urgent Care Center Inc., an Illinois corporation, employed Mr. Kazmi as a part-time hourly bookkeeper. He had no ownership interest in Urgent Care. He was not an officer of Urgent Care. His name was not on any …
Misclassified Workers Audit-Section 530 to the Rescue!
Are you living every small business owner’s worst nightmare: an IRS audit on misclassified workers? Have you heard of Section 530? Classifying Your Workers: Employees or Independent Contractors? As a business owner, you are obligated to collect and remit payroll taxes for your employees. But you are not required to collect and remit payroll …
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IRS FAQs Can Now Be Relied Upon to Avoid Penalties
The IRS recently announced that IRS FAQs posted on the IRS website can now be relied upon to avoid penalties. No penalty may be imposed under IRC section 6662 with respect to any portion of an underpayment upon a showing by the taxpayer that there was reasonable cause for, and the taxpayer acted in …
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Why Are IRS Audit Technique Guides( ATGs) Helpful?
So, why are IRS Audit Technique Guides( ATGs) Helpful? Well, as a company owner, you are in collaboration with the IRS, like it or not. You share your net earnings with the IRS according to your partnership contract (known to you as the Internal Revenue Code). To make certain you are sharing fairly, the IRS …
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