plano tx: Plano TX - Why Payroll Tax Debt Can End a Business - 12/14/20 09:23 AM
Payroll Tax Problems are a common denominator in a large percentage of failed businesses.  Either they are an initial driver of the cause of the business failure or a symptom of those problems.  However, one thing is certain, once a company begins to experience payroll tax problems, it becomes very, very difficult to get out of the vicious circle and get the business back on track.
Why are Payroll Tax Problems Tough to Survive?
When a company begins to get behind, there are several factors that make it difficult to turn the problem around.  Remember that the IRS prioritizes Payroll Tax … (1 comments)

plano tx: Plano TX - Payroll Tax Debt? Consider Hiring a Professional - 05/27/20 11:14 AM
There are times that it makes sense for a taxpayer with IRS tax problems to face the IRS on their own.   If the tax debt is fairly small, it may cost more to hire a professional than to simply pay the IRS directly or set up a payment plan.  Other times, the taxpayer may have the time to learn about the IRS processes and policies, and the patience and temperament to deal directly with the IRS.
  
However sometimes the problem is a big problem, or is complex and has risk if not handled correctly.  Payroll Tax Debt is one such problem.  If … (0 comments)

plano tx: Plano TX - Payroll Tax Debt and Fighting the TFRP Assessment - 04/30/20 10:57 AM
In previous posts, we’ve covered the complexity and catastrophic harm that can be caused when a business incurs Payroll Tax Debt. In addition to putting the business at risk, the IRS can assess personal liability to Responsible Persons of the business for the trust or fiduciary portion of the payroll taxes. This is known as the Trust Fund Recovery Penalty or the TFRP.
 
An individual can be held responsible for the TFRP when they are considered responsible for withholding, accounting for, depositing or paying payroll taxes and they are deemed to have willfully failed to do so. Some business owners and/or … (0 comments)

plano tx: Plano TX - 3 Strategies for Resolving Payroll Tax Debt Effectively - 04/21/20 03:22 PM
As we’ve covered in the past few blogs, Payroll Tax Debt can become a nightmare for a taxpayer who gets behind. In addition to the potential late filing and late deposit penalties to a corporation, LLC, or partnership for unpaid taxes, there is also the potential for personal liability, know as the TFRP.   When taxpayer’s come into our Richardson TX office with Payroll tax debt, we work to minimize personal exposure while effectively resolving the taxes.
 
Today we will discuss three strategies to reduce liability, including personally liability, if faced with Payroll Tax Debt. How you will address the payroll tax … (0 comments)

plano tx: Dallas TX - 7 Tax Strategies for Maximizing Student Financial Aid - 12/25/19 01:41 PM
Many of our clients in our Richardson, TX tax office are families with children in college or have children who may be attending college in the future and are planning for that cost. What’s on your tax return plays a big role in determining how much financial aid a college offers to students. To get the most financial aid possible, you need to plan out any tax moves several years before applying. Today I want to cover 7 Tax Strategies for Maximizing Student Financial Aid.
Colleges look at the income and assets of the parents and the student when calculating the … (1 comments)

plano tx: Plano TX Realtors - Preventing an IRS Tax Lien From Real Estate - 11/11/19 07:15 AM
Taxpayers who come into our Richardson, TX tax office with IRS Debt often have IRS Liens that are a major headache in their lives or are under threat of a lien which concerns them. One of our major goals in working with taxpayer’s with IRS debt includes preventing an IRS tax lien from being placed on their assets or removing an IRS Lien that exists. Last week, we gave an overview of the IRS Tax Lien. Today, we will discuss some alternatives to prevent an IRS Notice of Federal Tax Lien (NFTL).
 
How Do You Know if You Have a Tax Lien?
Often, … (0 comments)

plano tx: Richardson TX - Offers-In-Compromise: Are You An Offer Candidate? - 07/23/19 03:52 PM
Most of the taxpayers that come into our Richardson TX tax office with IRS debt have heard the advertisements stating that taxpayers can settle their IRS debt for pennies on the dollar. This is done using the IRS’s Offer-In-Compromise program. Not everyone qualifies for an Offer-In-Compromise however. How can you determine if you’re a candidate?
 
While it’s not possible to give you a definite answer without knowing your exact situation, here are some of the factors that will determine if you are a candidate.
You MUST be in tax compliance or get in tax compliance to successfully file an Offer-In-Compromise. What this … (0 comments)

plano tx: Plano TX - Is it true the IRS has only 10 Years to Collect Tax Debt? - 07/22/19 11:46 AM
Most of the taxpayers who come into our Richardson TX tax office believe that there are no limitations in the amount of time that the IRS has to collect tax debt. Did you know that the IRS has actually has only 10 years of time to collect tax debt from you once your tax is assessed? There are certain exceptions that may delay or toll the 10 year time limit that we’ll cover, but in general, without any actions by the taxpayer which stop the clock, once the 10 years are up, the IRS has to stop its collection efforts and … (0 comments)

plano tx: Richardson TX - The IRS Fresh Start Program - What It Is and Isn't - 07/21/19 02:24 PM
I often have taxpayers come into our Richardson TX Tax Office who have heard about the IRS Fresh Start Program. They often hear of it advertised as a new IRS program that made it much easier to resolve their debt with the IRS. While the IRS Fresh Start Program did make some improvements in resolving tax debt, in reality, it’s neither new nor is it the game changing program that taxpayers are sometimes led to believe.   Today, I’ll give a quick overview of the IRS Fresh Start Program and what it is and is not.
 
The IRS initiated its Fresh Start … (0 comments)

plano tx: Richardson TX - Injured Vs Innocent Spouse Relief for Tax Problems - 07/16/19 10:56 AM
Taxpayers who come into our Richardson, TX tax office are sometimes confused by the difference between  Innocent Spouse vs. Injured Spouse tax relief. Today, we’ll outline the differences between the two.
 
Injured Spouse
Injured Spouse Relief occurs when a couple file a joint return and the refund for the return is offset against a debt that relates to only one of the spouses. In these cases, the spouse who does not owe that financial obligation is the “Injured Spouse”. Financial Obligations that the IRS offsets refunds for include prior IRS debt, State Income Tax Debt, unpaid child and spousal support, and defaulted … (0 comments)

plano tx: Richardson TX - IRS Correspondence Audit - What to do if I'm Selected - 07/14/19 11:16 AM
When taxpayers think of an IRS audit, many still think of going into an IRS office with all of their paperwork and sitting down with an IRS employee. They picture a tense situation, with the taxpayer bringing boxes of paper and being interrogated by the IRS employee.
In reality, that’s not what most audits are like today. Most audits conducted by the IRS are Correspondence audits.   A correspondence audit is an audit which is conducted entirely through mail, although the taxpayer may have phone discussions with the IRS and/or fax information if they choose to do so. It is considered the lowest level of the IRS … (0 comments)

plano tx: Plano TX - Quickbooks Desktop Vs. QBO - Which is Best for My Business - 07/11/19 11:00 AM
The majority of small businesses in the US use an Intuit product ("Quickbooks") for their businesses bookkeeping. The term “Quickbooks” can mean Quickbooks Online (QBO), one of the various Desktop Versions, or Quickbooks Enterprise that is oriented towards larger businesses. When business owners come into our Richardson, TX office and ask me which is the best version, as with most things, my answer is typically “it depends”. Which is best for your business is based on a combination of your industry and your businesses special needs and your own comfort with technology. Here’s a quick look at Quickbooks Online (QBO) vs. … (0 comments)

plano tx: Plano TX - When Does My Business Need a CFO? - 07/03/19 11:06 AM
I truly believe that small business owners can benefit just as much, from outside financial advice, than large businesses. With small businesses, the room for error on hitting targeted numbers, and having sufficient cash to operate, is often miniscule. When is it helpful, if not critical to being on a Fractional CFO? 
Some of the traditional reasons for hiring a Fractional/Part-Time CFO include:
Business is looking to go public. Business need to raise capital or needs sources of debt financing. Developing a plan to sell the business. Targeting Acquisitions.  
In addition to the typical drivers of bringing on a Fractional or Part-time CFO, … (0 comments)

plano tx: Richardson TX - CAP - The IRS Collection Appeals Program - 06/30/19 10:35 AM
The Collection Appeals Program or CAP is one remedy available to taxpayer who have a variety of IRS issues. CAP hearings can be valuable resource in some circumstances and it is one option that we consider when taxpayers come into our Richardson, TX office with tax problems.
 
The right to a cap hearing is triggered by any of the following events:
Notice of Federal Tax Lien Notice of Levy Notice of Seizure Denial or Termination of Installment Agreement  CAP hearings where created by Congress as a result of IRS abuse, and are procedural reviews. A CAP appeal can be used effectively if the … (0 comments)

plano tx: Plano TX - Why Every Business Needs a Plan - 06/27/19 08:56 AM
One of my firm’s specialty services is providing CFO services and financial coaching to small and medium sized businesses. When entrepreneur’s walk into our office, they are often stressed and operating in chaos. While their problems  may be numerous, I often find that they have one thing in common. They have no business plan and have not thought out either strategic or tactical strategies to guide them in running their business.
 
In some ways it's easier to have no written plan that holds the business and the owner accountable.  The reality is that if a business has no real plan, they … (0 comments)

plano tx: Richardson TX - Innocent Spouse Relief Under 6015(c) and who Qualifies - 06/22/19 11:34 AM
As discussed in earlier blogs, while Married Filing Joint filing status (MFJ) is popular for married taxpayers because it often results in a lower tax liability, another consequence of filing MFJ, is that each spouse is jointly and severally liable for the taxes due on a joint return, regardless of who earned the income, and the IRS can collect from both spouses.  In some situations, this can result in an inequitable tax liability for an “Innocent Spouse”.
 
In these circumstances, the “Innocent Spouse” taxpayer may qualify for Innocent Spouse Relief for all or a part of the tax liability. We often … (1 comments)

plano tx: Richardson TX - What is Innocent Spouse Relief and Who Qualifies? - 06/11/19 10:22 AM
Most married taxpayers file using the Married Filing Joint filing status. This makes sense in most cases since it typically results in the lowest combined tax for the taxpayers. However, one impact of filing Married Filing Jointly, is that by default, each spouse is jointly and severally liable for the taxes due on a joint return, regardless of who earned the income, and the IRS can collect from both spouses.
 
This is usually fair and equitable as joint filers, but what happens if one spouse was unknowingly the victim of fraud or misstatement on a tax return? Is the “Innocent” spouse … (0 comments)

plano tx: Richardson TX - Small Businesses and the Home Office Tax Deduction - 06/09/19 10:47 AM
A common question that comes up with small business owners who visit our Richardson TX office is whether they can get a tax deduction for their Home Office. Today we’ll spend a little time discussing the Home Office Deduction for a small business owner who files on Schedule C of their tax return.
 
Before we move into the deduction for small business owners, one of the impacts of the Tax Reform Act of 2018 was that it took away the potential deduction as an employee. An employee who used the home office deduction took it as a miscellaneous itemized deduction. Beginning in … (2 comments)

plano tx: Richardson TX - Removing IRS Penalties For Reasonable Cause - 06/05/19 07:27 AM
In our last blog, we discussed IRS Penalty abatement using the First Time Abatement option. Today, we will talk about getting your penalty abated using Reasonable Cause to resolve the issue. Tax Penalties are a common issue for taxpayers that come to our Richardson TX office to discuss tax problems. Penalties can double your tax debt (or more) over time. The IRS does not simply remove penalties upon request. It is the government’s position that penalties serve as a valuable tool in compliance. However, you may be able to remove penalties using Reasonable Cause if you qualify.
 
How Do I Qualify Using … (1 comments)

plano tx: Richardson TX - Removing IRS Penalties Using First Time Abatement - 06/02/19 07:54 AM
Today, we’re going to spend some time talking about how to have an IRS Tax Penalty removed if it is your first offense or the first in 3 years.  This is a common issue for taxpayers that come to our Richardson TX office to discuss tax problems.  Penalties can double your tax debt (or more) over time.  The IRS does not simply remove penalties upon request.  It is the government’s position that penalties serve as a valuable tool in compliance.  However, First Time Abatement, is a circumstance in which you may be able to get your penalties abated. 
 
What Qualifies as … (0 comments)