Better than a Soap Opera? Trust Fund Tax Disputes
One of the most important financial responsibilities for any business is the timely payment of taxes, including payroll taxes. Payroll taxes are the taxes that employers withhold from their employees’...
View ArticleColorado Tax Penalty Only Applies to Compliance Employees
The state tax authorities can be more aggressive than their federal counterparts when assessing and collecting taxes, particularly in collections. It is often advised to pay state taxes while haggling...
View ArticleComparison: U.S. and France’s Approach to Small Business Taxes
In recent years, governments worldwide have been exploring new ways to address tax-related issues. For example, the French government, which reported a budget deficit of approximately 3% of its GDP,...
View ArticleStrategy for Paying Employment Taxes Late
Employers are generally required to withhold employment taxes from employee wages. The employer then remits these withheld employment taxes to the IRS. These are referred to as trust fund taxes, as...
View ArticleYou Cannot Dodge Notice for the Trust Fund Recovery Penalty
It is almost always advisable to keep on the lookout for open correspondence from the IRS. The Haben v. Commissioner, T.C. Summary Opinion 2015-55, case provides an example. In Haben, the U.S. Tax...
View ArticleFailing Business Triggers Trust Fund Penalties
Taxes are often neglected when a business is having financial difficulties. This can have serious repercussions for the business and the individuals who are responsible for having taxes withheld and...
View ArticleStay-at-Home Mom Not Liable for Trust Fund Recovery Penalty
The IRS has the ability to assess a trust fund recovery penalty against those who are responsible for withholding payroll taxes for employees if they fail to withhold and pay over the taxes to the IRS....
View ArticleJudicial Review for Trust Fund Recovery Penalties
Taxpayers who are assessed trust fund recovery penalties need to take note of the U.S. Tax Court’s recent decision in Anderson v. Commissioner, T.C. Memo. 2016-219. The decision highlights a potential...
View ArticleNo Reasonable Cause Defense for Some Trust Fund Penalties
The IRS is serious about unpaid employment taxes. The trust fund recovery penalty can be used to collect these taxes. This penalty makes a business tax liability a personal liability. With most...
View ArticleCheck Signing Activity Not Sufficient for Trust Fund Penalty
The IRS will often assert trust fund recovery penalties against anyone who signs checks written on the business checking account. The court addressed this in Shaffran v. Commissioner, T.C. Memo....
View ArticleLoaning Money to Business Triggers Trust Fund Penalty
You work hard to build a business, you find success over the years, and then you find out that your long term accountant did not remit payroll taxes and you owe a significant balance. What do you do?...
View ArticleFixing Trust Fund Recovery Penalties
The public may not be fully cognizant of this, but, the IRS is in the business of processing information and making decisions. It accomplishes this by siloing work on tax returns and accounts. The...
View ArticleHospital Administrator Owes Trust Fund Penalty
Employment taxes can be deadly for businesses. Once a business gets behind, it can be impossible to catch up. Those operating a failing or struggling business may feel that using employment taxes as a...
View ArticleBookkeeper Liable for Trust Fund Recovery Penalty
IRS employees are tasked with making decisions. These decisions dictate who owes taxes and penalties and who does not. These decisions are usually made in the context of well trodden areas and by...
View ArticleTax Form Mixup Can Extend the IRS’s Statute of Limitations
Suppose you file a tax return and, months or years later, you get a letter from the IRS saying that it will not accept the tax return. The IRS letter says that you used the wrong tax form. And maybe...
View Article
