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…
The Penalty Trap
The IRS loves a missed deadline because missed deadlines turn into easy penalties.
That is why so many business owners ask, when are business taxes due, and get tripped up by the answer. It is a trick question. The due date depends entirely on how your business is structured. A sole proprietor…