Everyone who has ever run a small business knows that it is a risky proposition, but the risk should be to the business, not to the individuals involved. To that end, one of the most important things to consider when forming a business is how to shield the owners from...
Year: 2021
Don’t let the trust fund recovery penalty derail your business
Business operations and taxes are inextricably intertwined. Regardless of how your business generates its income, taxes will need to be paid unless you can find enough exemptions and credits to shield you from that liability. Even seemingly minor mistakes can be...
IRS to resume collection process
The IRS is resuming certain collection and enforcement processes that were suspended since April 2020 due to the coronavirus pandemic. On June 15, 2021, the IRS began following up with taxpayers who have failed to respond to prior balance due notices. Balance due...
Understanding the IRS voluntary settlement program
A significant portion of a company’s tax entanglements often involves employee misclassification. Although employers are sometimes not up to date on changes to employment law, by avoiding employee withholding taxes for some or all of their workers, many seek to keep...
Employers face criminal and civil liability for unpaid withholding taxes
Tax laws require employers to withhold income, Social Security and Medicare taxes from employee pay and to remit those taxes to the federal government. Employers who fail to pay withheld taxes to the government face potentially significant penalties. In some cases,...
Attorney Chaya Kundra Presents on the Substantial Compliance Rules for Forms 5471/International Filing Requirements
Form 5471 Substantial Compliance Penalties Failure to file information required by section 6038(a) (Form 5471 and Schedule M) Failing to timely and accurately file Form 5471 may result in civil and criminal penalties, a reduction to foreign tax credit and the...
What are some divorce tax implications?
Creating and maintaining a happy marriage is complicated. But, divorce is also complicated, and one thing that some do not think about is the tax implications of a divorce. These should be discussed as part of the divorce. General tax implications Of course, tax...
Will you be held responsible for your ex’s tax fraud?
You and your spouse may have owned a successful business together, leaving you very well off. However, as is the case with many family-owned businesses in the Washington D.C. metro area, one spouse would be responsible for some tasks such as paying self-employment...
April IRS Updates
IRS Defines Restaurant to Qualify for 2021-2011 100% Food & Beverage Deduction: See, Notice 2021-25, 2021-17 IRB; IR 2021-79, 4/8/2021 IRS Updates FAQ on Second Economic Impact Payments for example if it was lost, stolen, or you didn't receive...
Worker identification number problems can be costly
The simplest mistakes pertaining to your business taxes can have severe implications that can leave you hit with enormous fines. These penalties can threaten you and your business with financial ruin. As stressful as that may sound, you shouldn’t let your fear...