Starting a business can be an exciting yet challenging endeavor. While the focus is often on building a product or service and attracting customers, understanding and managing your tax responsibilities is crucial to ensuring your business’s financial health. Here’s a thorough tax checklist for starting a business to help guide you through the process. Select […]
What is a Cafeteria Plan?
A cafeteria plan, also known as a Section 125 plan, is an employee benefit program that allows workers to choose from a variety of pre-tax benefit options. The name comes from the idea of a “cafeteria” where you can pick and choose what suits you best. They offer flexibility in creating a benefits package tailored […]
Can I Buy a House if I Owe Back Taxes?
Buying a house is an exciting milestone in life, representing stability, investment, and the fulfillment of a dream. However, for individuals who owe back taxes, the path to homeownership can seem uncertain. It’s essential to understand the implications and challenges associated with buying a house while having outstanding tax debt. In this article, we will […]
What if I Miss a Tax Deadline? IRS Penalties and Interest?
Filing your tax return late, or not filing at all, can result in IRS penalties and interest in addition to your unpaid tax burden. CEO David King and Lead Tax Attorney Philip Hwang provide helpful insight on important tax deadlines you should know about – and how you can resolve your tax liability with the […]
How are Partnerships Taxed?
Partnerships are a popular business structure for entrepreneurs looking to combine resources, expertise, and share profits. However, the taxation of partnerships can be complex, as the partnership itself isn’t taxed like a corporation. Instead, partnerships are subject to “pass-through” taxation, where the profits and losses pass through to individual partners. This guide explores how partnerships […]
How Worker Classification Affects Taxes
Understanding worker classification is crucial for both employers and workers, as it directly affects tax obligations and benefits. The way a worker is classified—whether as an employee or an independent contractor—determines who is responsible for various tax payments, what deductions are available, and how the worker must report income to the IRS. This article will […]
What To Do If You Receive IRS Notice CP71C
Receiving a notice from the IRS can be unsettling, and if you’ve received IRS Notice CP71C, it’s important to understand what it means and how to respond appropriately. This notice is a reminder from the IRS regarding an outstanding tax debt and offers information about what actions you can take to address the issue. Here’s […]
What is an Enrolled Agent?
We often hear that the tax professionals qualified to represent you before the IRS are CPAs, tax attorneys, and enrolled agents. While the first two roles are more well-known, many are still confused about what exactly an enrolled agent is. An Enrolled Agent (EA) is a federally authorized tax practitioner who has technical expertise in […]
What is the Gift Tax Exclusion?
When it comes to transferring wealth, the gift tax exclusion is a valuable tool for individuals looking to pass on assets without incurring significant tax liabilities. The gift tax is a federal tax on the transfer of money or property from one person to another without receiving something of equal value in return. However, the […]
What You Need to Know About IRS Bank Levies
When dealing with unpaid taxes, one of the most significant and immediate consequences can be an IRS bank levy. This action allows the IRS to legally seize funds directly from your bank account to satisfy outstanding tax debts. Understanding how an IRS bank levy works, how it can be avoided, and the steps to take […]