If there is a discrepancy in wage reporting on your federal vs. state unemployment taxes, a misclassification of employees, or if you have unemployment accounts in multiple states, you may be in danger of receiving a state unemployment audit. In addition, the U.S. Department of Labor requires state agencies to randomly audit a percentage of…
Most states have a sales tax on products and it’s typically collected by the state’s Department of Revenue. Usually, this type of tax debt is triggered by a sales tax audit. The state will often request accounting statements, state and federal returns, invoices, purchase orders, and any other financial statements from the business. Because sales…
As an attempt to close the Tax Gap, the IRS can audit a business by worker classification (employee vs. independent contractor), fringe benefits (non-monetary pay for employees), executive compensation (both monetary and non-monetary pay for executives), and reimbursed expenses (i.e.; travel expenses). The best way to avoid this is to pay close attention to the IRS…
Excise Tax is a tax paid when a purchase is made on a specific good, service, or activity. Typically, the IRS applies an excise tax to anything that may be harmful to a person or the environment. This can include tobacco, alcohol, health products or services, highway and fuel usage, and aviation usage and services….
If you have a business tax debt, the IRS can place a levy on your bank accounts that include your vital accounts used for payroll. When this occurs, the IRS has the right to remove all funds in these accounts to collect on the outstanding tax debt, making it problematic to pay crucial expenses and near-impossible to retain your employees that…
A payroll tax debt occurs when a business owner fails to withhold the appropriate amount of taxes from their employee’s paychecks and send the funds to the IRS. Sometimes this happens due to negligence of the company’s accountant, a mistake in understanding the tax codes, a misunderstanding of if an employee is a W-4 or…
As an employer, you’re responsible for paying payroll taxes on your employees. Typically, these taxes are due quarterly, which can make it easy to miss a payment. Some origins for payroll tax debt can be if an employer borrows from a payroll account to cover other expenses, or they may forget to withhold or deposit…
If the IRS files for a federal tax lien to be placed on your business, it can hurt your chances of securing a business loan, along with affecting any agreements or contracts you may currently have with lenders. Every lender wants assurance that they will get their money back, and your current lenders will be placed at…
If you have a business tax debt, the IRS can place a levy on your bank accounts which includes your Accounts Receivable. This means they will make a claim on any payments made to you to divert directly to them instead. The IRS will send letters to your customers and clients, instructing them to remit their payments to them…
