The Trust Fund Recovery Penalty (TFRP) is an enforcement tool used by the IRS to ensure the proper handling of trust fund taxes. It particularly pertains to payroll taxes withheld from employee wages. For business owners and individuals involved in financial decision-making, understanding the TFRP is vital to avoid severe financial and legal repercussions. This […]
Can the IRS Suspend Your Licenses?
The IRS holds significant power when it comes to enforcing tax compliance. From wage garnishments to levies on property, the IRS has a variety of tools to collect unpaid taxes. But can the IRS suspend your professional, business, or driver’s licenses? This article explores the extent of the IRS’s authority, its collaboration with other agencies, […]
What To Do If You Receive IRS Notice CP14
Receiving an IRS Notice CP14 can be stressful, but understanding what it means and how to respond is the first step toward resolving the issue. This notice is the first formal communication from the IRS indicating that you owe unpaid taxes. Ignoring it could lead to additional penalties and interest, so it is essential to […]
Penalties for Unfiled Tax Returns & How to Avoid Them
When you fail to file your tax returns or pay your taxes on time, you may face significant penalties from the IRS. These penalties are intended to encourage taxpayers to comply with tax laws, and their impact can range from financial burdens to long-lasting consequences. In this article, we will explore the penalties for unfiled […]
What To Do If You Receive IRS Notice CP504
Receiving a notice from the IRS can be intimidating, especially if it’s IRS Notice CP504. This is not just a regular reminder; it’s a Final Notice of Intent to Levy. Understanding what this notice means and how to respond promptly is crucial to avoid further penalties and collection actions. Here’s what you need to know […]
What is a Tax Lien?
A tax lien is a legal claim by a government authority, such as the IRS, against a taxpayer’s property due to unpaid tax debts. This claim acts as a security for the government, ensuring the taxpayer’s obligation is eventually fulfilled. Tax liens can significantly impact individuals and businesses, making it essential to understand their implications […]