Author: Steve Perry
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Why Every S-Corporation Owner Needs a Reasonable Compensation Basis
S-corporation owners are required to pay themselves a reasonable salary for the work they perform. The IRS scrutinizes these salaries, and failure to properly document reasonable compensation can trigger audits and penalties. Many business owners struggle to determine what is considered reasonable. Steve Perry, EA at Books Taxes & More creates comprehensive, audit-proof reasonable compensation…
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Understanding IRS Letter 3164: How Steve Perry, EA Can Help
IRS Letter 3164 often catches taxpayers off guard. This notice means the IRS is preparing to assign your overdue tax account to a private collection agency. While this letter does not demand immediate payment, it signals that the IRS considers your account inactive and unresolved. The purpose of Letter 3164 is to inform taxpayers before…
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Understanding IRS Letter 3172 and How Steve Perry, EA Can Help
IRS Letter 3172 notifies taxpayers that a Notice of Federal Tax Lien has been filed due to unpaid tax debt, giving the IRS a legal claim on their property. This lien can severely impact credit, complicate financial transactions, and damage personal and professional reputations. Importantly, the letter offers a limited window, usually 30 days, to…
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What Taxpayers Should Know About the IRS CP71 Notice and How an Enrolled Agent Can Help
– The IRS CP71 Notice, titled “Annual Reminder of Balance Due,” alerts taxpayers annually about unpaid taxes including penalties and interest, without immediate collection action but with potential future enforcement. – Ignoring the CP71 can lead to escalated IRS collection actions such as liens or levies. – Steve Perry, an Enrolled Agent (EA) at Books,…
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Understanding IRS CP40:What it means and How an Enrolled Agent Can Help
– The IRS CP40 Notice indicates a taxpayer’s unpaid tax debt has been assigned to a private debt collection agency authorized by the IRS to handle lower-priority cases before the collection statute expires. – Private agencies cannot use IRS tools like liens, levies, or garnishments, and the notice means the IRS prioritizes other cases. -…
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Understanding IRS LT40: What it means and How an Enrolled Agent Can Help
Receiving an IRS LT40 Notice can be a daunting experience for taxpayers, as it signifies that the IRS has identified a potential issue with their tax return that requires immediate attention. This notice serves the purpose of requesting additional information or clarification to resolve discrepancies and ensure accurate tax reporting. Navigating the complexities of an…
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How an Enrolled Agent Can Help with Your CP22A Notice
Receiving a notice from the IRS can be unsettling, especially when it involves changes to an already filed tax return. One such notice is the IRS CP22A, a document that informs the taxpayer that their return has been adjusted, typically based on information provided by the taxpayer or a recent amendment. This notice is not…
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What Is IRS Notice CP59 and How an Enrolled Agent Can Help
When a taxpayer receives IRS Notice CP59, it means the IRS believes they did not file a required tax return. This notice is sent when the IRS has no record of a return being filed for a specific year, even though they have information that suggests one was required. While the notice itself does not…
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Understanding IRS Notice CP3219 or LTR 3219 and How an Enrolled Agent Can Help
IRS Notice CP3219 or LTR 3219 is a crucial communication indicating that the IRS proposes changes to a tax return and seeks to assess additional tax. Taxpayers have 90 days, or 150 days if abroad, to respond before the IRS initiates tax collection. This notice allows for disputing changes, filing a petition with the U.S.…
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How an Enrolled Agent Can Help Resolve IRS Notice CP2566
IRS Notice CP2566 indicates a missing tax return, prompting a proposed tax assessment based on available income data. It signals ignored prior requests and necessitates urgent action. Taxpayers can resolve it by filing the return, disputing the assessment, or seeking help from an Enrolled Agent like Steve Perry to ensure compliance and reduce liabilities.
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