The IRS will hold individuals in a company personally liable for trust fund recovery penalties. The IRS will conduct an investigation to make this determination. This blog discusses the factors the IRS evaluates during the investigation to determine the individuals considered a “responsible person” for trust fund penalties.
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Trust Fund Recovery Penalty – What is it?
When a business is in a difficult financial situation, a decision may be made to temporarily not pay payroll taxes. What may not be known is when the payroll taxes are left unpaid, the IRS can make individuals in the business personally responsible for the payroll taxes. This is called Trust Fund Recovery Penalty. Continue reading…
IRS New "Fresh Start" Program works!
Earlier this year the IRS announced the “Fresh Start” program. The IRS implemented this program to provide relief to struggling taxpayers. I discussed the need for program in my blog posting, “IRS Overwhelmed by Offer in Compromise Requests, Changes Made.” I must admit that I was a little skeptical of this program in the beginning. But now I am a believer.
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IRS overwhelmed by Offer in Compromise requests, changes made
According to the Treasury Inspector General for Tax Administration (TIGTA) report, the IRS was overwhelmed by Offer in Compromise (OIC) requests. Due to the backlog of OIC requests, TIGTA recommended changes to the OIC program. The IRS did implement some of the recommended changes.
What is a Substitute for Return (SFR)?
In any year when an annual income tax return is not filed, the IRS files a Substitute for Return (SFR) on your behalf to your IRS account. The IRS does this to estimate the taxes owed and to start the collection process. Continue reading…
How does a tax resolution company find out about your tax problem?
Taxpayers with IRS problems are being cold-called or are receiving letters from companies urgently seeking contact and promising that your tax problems can be easily resolved. Some companies are being creative, sending out letters to taxpayers that contain personal information which often mimic official IRS letters. Companies gain access to personal information due to a tax lien being filed by the IRS.
Can I really settle my taxes for less than I owe?
The simple answer to this question is maybe. The more accurate answer, it depends on your current financial situation because not all taxpayers qualify. Even if you are qualified by IRS criteria, the resolution process can be lengthy and expensive.