Tag: steve perry ea
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Partnership Tax Problems That Turn Into Expensive IRS Notices
Partnership tax risk does not end when Form 1065 is filed. Ongoing K-1 matching, fixed per partner penalties, and the centralized partnership audit regime create exposure that continues year-round. Steve Perry, EA explains how IRS notices develop and what partnerships and partners should do to stay ahead of enforcement.
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Shareholder Distributions vs. Payroll: Understanding the Difference Before the IRS Does
Withdrawals from an S-corporation are either wages or distributions, and the two carry different rules. Owners, who wait until filing time to decide which is which lose the chance to withhold and deposit payroll tax correctly and often overlook basis tracking that determines whether a distribution is taxable.
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Reasonable Compensation: The IRS Rule Many S-Corporation Owners Ignore
Reasonable compensation is not a once-a-year filing decision. It is set through payroll during the year and stays open to IRS review long after. Owners who wait until the next return is prepared to check their salary have already lost the window to correct it for the year that closed.
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S-Corporation Compliance Mistakes That Attract IRS Attention
S-corporation compliance does not end at filing. IRS matching systems compare payroll, Schedule K-1 data, and shareholder returns throughout the year, and mismatches in reasonable compensation, basis, or unanswered notices narrow options quickly. Ongoing review, not once-a-year filing, protects compliance standing and preserves planning opportunities year-round.
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The Payroll Tax Mistake That Can Cost You Your Business and Your Personal Assets
Payroll tax mistakes can move beyond the business and create personal exposure for owners. This article explains how IRS matching, notices, deposits, records, and timing affect payroll tax cases. It shows why early action matters and why waiting until the next filing season can narrow options and increase risk.
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IRS Can Only Resolve Known Tax Debt
The IRS can only resolve the tax debt it knows about. Missing returns, inflated SFR assessments, unverified payments and current year noncompliance distort the account. Taxpayers need transcripts, correct filings, verified credits and accurate financial information before choosing a payment plan, offer, appeal, or other resolution path.
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Waiting to Become IRS Compliant Costs More
Waiting to become IRS compliant usually costs more because the IRS system keeps moving. Penalties and interest grow, SFR balances remain active, notices advance, refunds expire, records become harder to prove and resolution options stay limited. Filing today creates the record needed to regain control.
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Compliance Gives You IRS Leverage
Compliance gives taxpayers leverage because filing required returns completes the IRS account, places taxpayer supported facts into the record and opens the door to resolution options. Filing is not the end of the process. It is the point where payment plans, offers, appeals, penalty relief and hardship analysis can begin.
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Future Compliance After IRS Resolution
Future compliance protects IRS resolution programs. Installment agreements, Offers in Compromise, appeals, penalty relief and business tax resolutions depend on staying current after the old balance is addressed. Taxpayers must correct withholding, make estimated payments, keep payroll deposits current, answer notices and prevent new balances.
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Estimated Taxes and Withholding After Filing
Estimated tax payments and withholding adjustments keep the next IRS balance from forming. A payment plan or resolution strategy for old tax debt fails when the taxpayer ignores current year compliance. Post filing season is the best time to review wages, business income, retirement distributions, investments and estimated payments.
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