Tag: taxes
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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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Why Borrowing Payroll Taxes Costs More Than Any Loan
Using withheld payroll tax to cover a cash shortfall is not a loan. Penalties reach ten percent within two weeks and fifteen percent after notices, interest compounds daily, and the debt shifts to personal liability that survives bankruptcy. Understanding this cost structure before a deposit is missed preserves far more options.
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What Every Business Owner Needs to Know About the Trust Fund Recovery Penalty
A proposed Trust Fund Recovery Penalty starts a strict sixty-day response window. Business owners who miss it lose the chance to present facts before the IRS assesses the penalty and moves into collection. Records of who controlled disbursements, not intent, usually decide who ends up personally liable.
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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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What IRS Collection Notices Really Mean, Before Panic Costs You More
IRS collection notices are procedural steps within a structured enforcement process, not random threats. This blog explains what collection notices mean, why panic often creates expensive mistakes, and how understanding IRS timing and sequencing helps taxpayers preserve options, avoid unnecessary financial damage, and respond more strategically after filing season ends.
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Why Waiting for the IRS to “Figure It Out” Usually Ends Badly
Many taxpayers assume the IRS will eventually resolve account issues automatically. This blog explains why waiting silently often increases penalties, accelerates collection activity, and reduces available options. Learn how IRS processing systems work after filing season and why proactive engagement usually creates better outcomes than hoping the problem disappears.
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The Worst Thing You Can Do After Receiving an IRS Collection Notice
Ignoring an IRS collection notice is often the fastest way to lose options, trigger enforcement activity, and increase financial pressure. This flagship blog explains how the IRS collection sequence works after filing season, why silence creates risk, and how early action preserves leverage, payment flexibility, and realistic resolution opportunities.
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