Are You Withholding Enough for Your Taxes? If Not, What Happens?

The United States federal tax system requires you to ‘pay as you go.’ This can either be accomplished by paying estimated taxes or withholding. The amount withheld depends on earnings, withholding status, and the number of allowances claimed. Read on to learn more about withholding—and what might happen if you don’t withhold enough. Consequences For […]

Depressed About IRS Back Taxes? Tips for Protecting Your Mental Health

Tax season is tough, especially for independent contractors and small business owners. Most grumble, but ultimately file — and pay — their taxes on time before moving on with life. Some, however, find themselves falling further and further behind. An IRS spokesperson estimates that 8.2 million Americans owe a whopping $458 billion in back taxes. […]

What’s the Difference Between Form 944 And Form 941?

You’re well aware of Form 941 and the need for filing quarterly payroll taxes, but did you know that an alternative exists? Although it’s only open to a handful of small businesses, Form 944 provides a valuable second path for select entrepreneurs. Form 944: Annual Taxes Primarily Intended For Small Employers Form 944 is primarily […]

The Pros and Cons of Streamlined Program vs. OVDP

You face a challenging financial situation. You want a reprieve—a clean slate. Both streamlined programs and the Offshore Voluntary Disclosure Program (OVDP) may be able to help. What are these options? How do they compare to one another? Which should you choose? The Pros and Cons of OVDP Are you worried about criminal prosecution because […]

Failure to Pay Your 941: All the Penalties You Might Face

As an employer, you’re required to withhold payroll taxes from your workers’ paychecks. More importantly, you must pass on these funds (often referred to as trust fund taxes) to the IRS. Failure to file Form 941 or pay associated taxes could lead to harsh consequences, as outlined below: Fines If you willfully fail to pay […]

Everything You Need to Know About the Trust Fund Recovery Penalty (IRS Form 941)

It’s no secret that, as an employer, you’re supposed to file IRS Form 941 on time — and pass on withheld employment taxes to the IRS. If you fail to pay these taxes on time, you may be subject to the Trust Fund Recovery Penalty (TFRP). Designed by Congress to encourage prompt payment, the TFRP […]

Differences Between the Financial Crimes Enforcement Network (FinCEN) and the IRS

Do you understand the differences between the Financial Crimes Enforcement Network (FinCEN) and the IRS? If not, you’re not alone. Let’s clear up your confusion about these two very closely associated components of the U.S. Department of the Treasury. FinCEN The primary function of FinCEN is to protect the U.S. financial system from any improper […]

How to Prevent IRS Employment Tax Problems: Insights and Resources

An ounce of prevention is worth a pound of cure clearly applies to business tax debt. This problem is highly avoidable, even for businesses facing severe financial hurdles. Thorough Record-Keeping Haphazard records cause a world of trouble, especially for small business owners. The IRS recommends retaining payroll tax records for at least four years after […]

IRS Form 941 Balance Due? What Could Happen Next Year — The Good, The Bad, And The Ugly

Trust fund taxes are due, and it’s time to pay up. Your actions now could impact your business not only in the immediate future but in the long-term. Highlighted below are a few potential scenarios: The Good: You File And Pay On Time The best case scenario for IRS Form 941? You correctly file the […]