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…
This page has been updated for 2022 tax return guidelines. Did you fail to file your tax return this year? You’re not alone. Over 175 million individuals did not file a tax return this year alone. While many of these individuals fall under an exemption, many more simply failed to file for other reasons. Requirements to a…
Those who owe a tax debt to the IRS will typically also have a state tax debt. There are many ways to gain a tax debt with a state; however, the most common way it occurs is when an individual works and lives in separate states. Filing your tax returns with an inexperienced accountant or…
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…
Filing taxes can be a complex matter. The tax laws change often and understanding the minutiae takes years of experience to be able to decipher the verbiage the IRS uses. Not only that but if you have attempted to file your tax return to discover a large debt, you may not have used or have…
Typically, acquiring a tax debt comes with additional interest and penalties. However, the IRS will waive some or all of the specific penalties under certain conditions. Some of the penalties eligible for being waived are, but are not limited to: Failure to File Failure to Pay Failing to Deposit One of the benefits of applying…
An IRS levy is different than a lien. A lien is a legal claim placed on your property and on your credit report. A levy is when the IRS actually seizes your property or your funds directly from your bank account, savings account, or other financial accounts where your money is held. The IRS can also…
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…
