The Trust Fund Trap
The IRS treats unpaid payroll taxes differently from ordinary business tax debt.
Part of that money was withheld from your employees' paychecks for income tax, Social Security, and Medicare. The government considers those withheld amounts trust fund taxes that your business was supposed to send to the IRS.
That makes payroll…
The Algorithmic Matchmaker
Most IRS scrutiny is not personal.
The IRS uses automated systems to compare the income on your return with W-2s, 1099s, and other forms reported by employers, banks, and clients. One of the easiest ways to attract attention is simply having numbers that do not match.
Before filing, make sure every income…
Myth: Tax Debt Automatically Means Jail
Owing the IRS does not automatically mean jail, wage garnishment, or seized property.
The IRS usually wants a workable collection solution. “Fresh Start” is not one magic forgiveness program. It is a broad name for several relief options, including payment plans, Offers in Compromise, penalty relief, and hardship status.…
The Paycheck Nightmare
Few things feel worse than opening your paycheck and realizing a huge chunk of your income is gone.
That is what can happen when unpaid tax debt gets ignored. The IRS can bypass you and send a legal garnishment order directly to your employer.
Once that happens, your payroll department may be…
The 10-Year Expiration Myth
Here is something many taxpayers do not know.
The IRS does not have forever to collect unpaid tax debt. In most cases, the IRS has a 10-year collection window to collect what you owe.
This deadline is called the Collection Statute Expiration Date, or CSED.
Once the CSED expires, the tax…
The Final Warning
Few IRS letters feel more serious than a Notice of Intent to Levy or a Notice of Federal Tax Lien.
This is the IRS warning you that collection action may be coming. That can mean a frozen bank account, wage garnishment, seized assets, or a lien against your property.
Do not ignore…