Who is Liable to the IRS for Unpaid Payroll Taxes?

March 9, 2016

All companies are responsible for paying the payroll taxes of its W-2 employees. Payroll taxes are typically made of two parts: the employee’s portion—Social Security tax, Medicare tax, and income tax withholdings, and the employer’s portion— Medicare and Social Security taxes. The employee’s total withholdings are referred to by the IRS as the “Trust Fund” amount…
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Why Did the IRS Select Me for a Tax Audit?

February 29, 2016

An IRS tax audit occurs when the agency wishes to double-check the numbers on your tax return to ensure there are no discrepancies. Audits are usually conducted to minimize the difference between what the IRS is owed versus what the IRS actually receives. While it is possible for you to randomly be flagged for an…
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Options for Businesses Behind on Payroll Taxes

November 20, 2015

Generally, employers are legally required to file payroll taxes for their employees on a quarterly basis and pay them on a monthly or semi-weekly basis. While the best way to avoid any legal issues regarding payroll taxes is to pay them regularly and promptly, it is not uncommon for businesses to fall behind in their…
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Seven Unusual But Legal Federal Tax Deductions

November 2, 2015

The U.S. Tax Code allows for numerous strange but lawful tax deductions that most taxpayers aren’t aware of. Here are some of the bizarre deductions that might help save you some cash in the next filing season: Swimming Pools Your home swimming pool may qualify as a deductible medical expense if you have a condition…
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What Employees and Employers Need to Know About Reporting Tip Income

October 19, 2015

Tips are defined as payments made by customers without compulsion. In most restaurants throughout the country, servers receive tips from the customers that they serve. Customers are entitled to determine the amount of their tips. Other restaurant employees who typically receive tips in addition to their hourly wages include bussers, food-runners, bartenders, hosts, and cashiers….
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Do I Need to Pay Taxes for Income Earned From a Hobby?

October 7, 2015

Millions of people across the country engage in hobbies in order to relax from the hustle and bustle of everyday life. For many people, hobbies also offer an additional source of income. The question is: Do hobbyists need to worry about paying taxes for their activities? The answer is yes. According to the IRS, all…
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Do I Need to File a Tax Return on Gambling Winnings?

August 20, 2015

Taxes are probably the last thing on your mind when you are playing games of chance at a casino, placing wagers on horse races, or even playing Bingo at the mall. Unknown to many, however, is that your gambling winnings are almost always considered taxable income. Failure to properly report your earnings can result in…
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What Are the Tax Implications of Marriage?

May 20, 2015

There are numerous tax considerations for married filers. Depending on a couple’s specific circumstances, being husband and wife can be considered either a bonus or a penalty. Although marriage can potentially lead to a substantial tax penalty, it can also lead to a tax bonus in other scenarios. Filing Status Newly married couples face the…
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Types of Tax IRS Audits

May 15, 2015

Every year, the IRS selects random tax returns for audit. Being audited by the IRS can be a stressful experience. Many people are unaware, however, that there are different types of IRS audits, and they must understand that not all audits are handled equally. In some instances, the IRS may just want to clarify some…
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IRS Penalties and Interest

May 7, 2015

Individuals are generally given until April 15 to file their tax returns and pay any taxes they may owe for the year. In most instances, you will likely not have to pay any penalties—provided that your tax return was filed and the balance was paid by April 15. If you fail to meet the deadline…
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