Here are the Top 5 Errors committed by Tax Preparers on the 2006 Tax Returns. Some of these errors will result in the taxpayers owing more money. In and of itself, oweing the IRS is bad, but what makes it worse is that a lot of these taxpayers will not receive notice of this for…
Monthly Archives: June 2007
Is Medical Marijuana a Deductible Expense?
   The Internal Revenue Code prohibits deducting expenses paid in the trafficking of a controlled substance that is prohibited by federal or state law where the trade/trafficking/sale is being conducted (IRC § 280E). The question is, what about when the disbursement of the marijuana for medical reasons is not prohibited by state law – does…
The IRS Says I owe Payroll Taxes, but My Accountant Was Supposed to Pay Them
QUESTION: I own a small company and was recently notified by the IRS that I owe thousands of dollars in payroll taxes. I had an accountant that was supposed to handle these matters, so I do not think I owe this money. What can I do? ANSWER: I need to know more information before I…
How Much Do I Offer
I am frequently asked this question in my initial interview with clients. “How much will I be able to offer the IRS with my offer in compromise when I owe (blank) dollars?” Unfortunately, this is not a question I can immediately answer for my clients, but, the good news, determining the amount you offer is…
Trust Fund Recovery Penalty Extended to Other “Excise Taxes”
   Most of the time, the Trust Fund Recovery Penalty is associated with employers not making the payments of income taxes withheld from their employee’s paychecks over to the IRS. In this situations, the IRS holds the owner or responsible party of the business liable for these taxes, personally. Recently, the 8th Circuit Court of…