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Yes. Your organization is still a business and is subject to the same requirements as a for-profit organization in terms of payroll, as well as your salary, office supplies and marketing. It is the bottom line that is affected by the non-profit status. To the extent that such profits are used to further the charitable […]

The IRS is aware of your sole prop.’s income, unless it is an all cash business and does not maintain a bank account. Banks are required to report to the IRS interest payments made on accounts on a regular basis. Any clients that pay for your business’s services or goods for business reasons will report […]

It depends (am I an attorney, or what?). Corporations exist to protect the owner(s) from legal liability. If your business can be sued, it is a good idea to incorporate. This includes just about anyone whose business entails any form of risk. A corporation also is helpful is distinguishing your business from your person for […]

The IRS can file your tax returns for you based on income reported by third parties (jobs, contracts, banks, credit cards, etc…), assess liabilities against you, allow interest and penalties to be imposed and grow and collect then against these liabilities as though you had filed the returns and not paid your tax due. A […]

The IRS can file your tax returns for you based on income reported by third parties (jobs, contracts, banks, credit cards, etc…), assess liabilities against you, allow interest and penalties to be imposed and grow and collect then against these liabilities as though you had filed the returns and not paid your tax due. A […]

The following is an attempt to explain the CP series of notifications from the IRS to taxpayers. This is not all inclusive but focuses on notices that lead up to and include the collection process of the IRS. All of them are primarily computer generated. If you respond by telephone, you will be directed to […]

File a Form 843 and wait. The IRS takes your refund if you owe the IRS for back taxes or you owe another state or federal agency a debt. In the latter case, it is an immediate offset by the Federal government and may not necessarily be the IRS that is involved.  In either case, […]

The IRS can file your tax returns for you based on income reported by third parties (jobs, contracts, banks, credit cards, etc…), assess liabilities against you, allow interest and penalties to be imposed and grow and collect then against these liabilities as though you had filed the returns and not paid your tax due. A […]

It can charge interest. It accrues daily. It can charge penalties for failure to file, pay, under-report, etc.… It can audit you. It can file a lien against property you own. If you sell, the IRS can put itself in line to. receive the proceeds before you personally. It can file bank levies and seize […]

There are two primary ways to have penalties abated and refunded or waived. The first is what is referred to as a “First Time Penalty Abatement.” As the term implies, it is available to taxpayers who have shown a record of compliance and good behavior who have made a mistake for the first time. The […]