Wednesday, January 31, 2018

Does your business owe back payroll taxes?

Does your business owe back payroll taxes?

If so, these are serious tax compliance issues we can assist you in resolving before this happens to you! When business owners fail to timely and properly make the payroll tax liability payments it’s much more of a problem than just the fact that the payroll taxes have not been paid.

The IRS can assess Trust Fund Recovery Penalties on the business owners, officers, shareholders, partners, employees, spouses or anyone else who had knowledge of the outstanding payroll taxes and the capability to have made those payments but didn’t do so. Anyone who has accounts and payments authority or ability is at risk for a Trust Fund Recovery penalty assessment that is 100% of the outstanding payroll taxes! That’s not a misprint folks, TFRP is a 100% civil penalty.

That means that the TFRP is assessed to the responsible parties as a personal liability and when it is not paid by those responsible parties personally, then the IRS can pursue collection by a levy which is an assignment for collection.  Keep in mind a TFRP 100% penalty is in addition to the outstanding payroll taxes due.

Click on the link below to read a Tax Court case this week of a business owner who failed to pay the payroll taxes, was assessed TFRP penalty and although he claimed he suffered a “financial” hardship neither the IRS nor the Court sees his claims of financial hardship quite the same way he does.

Folks, please read this so you understand what can and will happen. Let us help you resolve any outstanding payroll tax liability issues before there’s a TFRP penalty assessment.

Share this information if you know of any business owner’s in these circumstances!

Tax Facts Resolution Representation
South Region Center

Monday, January 29, 2018

Business Losses Disallowed

If you own a business, this one’s for you!

Businesses claiming losses year after year with NOLs and carrybacks is a significant problem.
We provide professional advisement for business owners of the substantiation requirements for their business income, expenses as well as requirements to prove what actions they have taken to improve business operations to minimize losses under the mandatory tax laws that a business is engaged with a profit motive.

Some business owners “heed” the advisement to improve performance, records substantiation and the credible ability to justify the losses more than just by the fact that it was claimed on the filed tax returns. Other business owners don’t heed the advisement and subsequently fail to be able to establish that the business was operating with a true profit motive as is required by the IRS.

At least once a week we hear from business owners who say “my accountant says claiming losses is fine”! Poor advice.

Continually claiming business losses with the intent to offset other taxable income, therefore, reducing overall tax liability is a substantial problem. It’s not just us as Professional Tax Experts saying so. It’s the tax law and we encourage every business owner to read this linked recent U.S. Tax Court case.

Joy Ford had an operating business establishment as a music club venue featuring live country music. As with many “cash-intensive” businesses, Joy obviously failed to properly report the business activity’s “actual” income revenues which ultimately serves to bite-her-in-the-butt. Joy claimed huge business operating expenses, kept little viable receipts or statements of the business’s true expenses.  Joy had other issues lurking for her too!

Joy’s lack of provable profit motive, lack of listening to business advisement and “elements” of her own personal enjoyment in operating the country music venue resulted in the business activity being deemed by the court as a hobby activity not engaged for profit.
Huge issue! Hobby activities cannot report a loss. Hobby activities can only deduct certain types of expenses to the extent of “income generated and reported”.

If you’re a business owner, grab a cup of coffee, tea or your fave beverage then click on the link below to read this tax case. It’s a “short” 7 pages in comparison to most cases that are usually much longer.  We believe you will learn a lot.

These are not just our words as Tax Experts!
This is how the tax laws are and how the courts will rule on the case. 

Sunday, January 28, 2018

Enrolled Agents Tax Experts Video

To learn more about what we can do for you visit our website.

Saturday, January 20, 2018


We have received an extensive amount of calls and concerns regarding the impact of the current U.S. Government Shutdown and want to share with you the immediate impact information we have received.

Numerous government agencies will be impaired since Congress failed to pass an operating spending bill.

There will be a mandatory furlough of non-essential governmental employees, so many government offices and services operations will be impacted.  Many federal agencies and departments will be reduced to essential services only including the IRS.

Currently certain agencies will continue to operate, this includes the U.S. Postal Service, Social Security Administration, Veterans Administration, Medicare and Medicaid programs.  This means that mail will continue delivery, Social Security checks will be disbursed, medical services will be provided for veterans and those receiving benefits of Medicare and Medicaid. The Transportation Security Administration will continue to operate but due to the mandatory furlough of non-essential government employees TSA may incur staff reductions that will impact air travel.

What this means for you and your taxes!
All prevailing tax law remains in affect and all taxpayers remain obligated to meet all tax obligations as normal.

The IRS will need to continue processing activities to the extent necessary to protect government property and assets which includes the collection of tax revenue which maintains the integrity of the Federal tax collection process and will continue certain other authorized activities under the Anti-Deficiency Act.

Both individuals taxpayers and business taxpayers remain responsible for timely filing and timely payment of tax obligations including estimated tax payments, payroll taxes payments etc.  No extensions apply due to the Federal Government Shutdown.

If you are subject to a Direct Debit Installment Agreement, know that the U.S. Department of the Treasury will continue those withdrawals on the specified dates of the prior agreement.

If you are subject to an Agreed Estimated Tax Payments Direct Debit, know also that the U.S. Department of the Treasury will continue those withdrawals on the specified dates.

Some significant delays you can expect due to IRS furlough of non-essential employees includes:

IRS tax refunds issuing will be delayed!

Scheduled IRS examinations, audits and appeals functions will recognize delays, but this does not mean that they will not transpire.  Taxpayers subject to examination, audit or appeals actions remain obligated to stated compliance dates.  If you have received an IRS Notice of pending action, please contact us immediately to resolve these issues.  IRS offices, service centers and call centers will be shut down and not responding to taxpayer questions.

U.S. Tax Court has informed us that trials sessions currently scheduled for the week of January 22, 2018 will proceed at the scheduled trial locations.  The Court expects that all trial locations will be accessible for use during the week of January 22nd.  U.S. Tax Court anticipates continuing normal operations for as long as funding permits.  They will provide us further guidance on the status of future scheduled trial dates.

The filing of your 2017 income tax returns remains subject to the current filing deadlines for all returns types.  There will be no extension to the current filing deadlines.  However, the IRS service centers will currently only be processing returns to the point of batching whether the returns are electronically filed or paper filed.

The filing of amended Form 1040X returns will be delayed.

If the Government Shutdown extends beyond five business days, the IRS will be reassessing mandatory activities and the impact of diminishment to non-essential activities and will provide us with further guidance we will share with you as soon as possible.

We specialize in the tax matters that affect you, your family and your businesses everyday.
Experience the difference we can do for you! 

South Region Center