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…
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 Ostrich Mistake
Seeing an IRS envelope in the mail can make your stomach drop.
The natural reaction is to toss it in a drawer and hope it disappears. That is the ostrich mistake: hiding your head in the sand while the problem gets worse.
An unread IRS letter is not harmless.
It is a…
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…
The Envelope Anxiety
Few things make your stomach drop faster than pulling an envelope from the mailbox and seeing Department of the Treasury in the corner.
If you are panicking right now, that is normal. But take a breath. Most IRS notices are not an audit letter from IRS situation. In fact, when people ask…