It can be a startling experience to open a notice from the IRS and see a slew of penalties tacked onto a past-due tax bill. In these situations, there is the opportunity for an IRS penalty abatement reasonable cause, a form of relief that hinges on more than just saying “I forgot.” The IRS does …
Payroll tax penalties can pose a threat to business owners who fail to meet their payroll tax obligations. These penalties can arise when businesses do not pay their required payroll taxes on time or fail to file the appropriate paperwork. The consequences of failing to comply with payroll tax requirements can be serious, ranging from …
Knowing the difference between income vs. payroll tax can be confusing, especially for new business owners or those unfamiliar with tax systems. While both are forms of taxation that individuals and businesses are required to pay, their purposes and applications differ. Income vs. payroll tax is a fundamental distinction that affects how much is owed …
The IRS follows a strict process before enforcing a levy, but how many notices does the IRS send before levy? Many taxpayers are unaware of the steps the agency takes before seizing assets, leading to confusion and financial distress. These notices serve as warnings, giving individuals a chance to take action before serious consequences occur. …
If you owe back taxes, you might wonder: Can the IRS take money out of your bank account? The short answer is yes. When the IRS determines a taxpayer has outstanding debt, they have the authority to issue a bank levy. This allows them to withdraw funds directly from an account. This action is one …
Business owners and individuals with back taxes find themselves overwhelmed by the fear of endless collection actions, struggling to escape the constant pressure. Understanding the laws surrounding the IRS’s ability to collect taxes is necessary for forming a strategy for dealing with tax debts. Is there a statute of limitations on taxes? The IRS does …