Panic Over Whether PPP Loans Will Be Taxable: What’s Going on And What Comes Next?

When the Paycheck Protection Program (PPP) was first announced as a form of mitigation for cash-strapped COVID-era businesses, advocates assumed that the initiative’s forgiven loan money would not be taxable. This provision made the program far more desirable to business owners who might otherwise have been skeptical. Unfortunately, the very promise that encouraged entrepreneurs to […]

Got Virtual Currency? Avoid These Tax Mistakes

As a cryptocurrency enthusiast, you’re always looking for new ways to optimize your digital investments. If you’re not careful, however, your efforts could lead to major trouble with the IRS. Chief mistakes include failing to disclose the sale or exchange of cryptocurrency on your tax return or other related documents. Unfortunately, even minor reporting mistakes […]

Faking Death to Avoid Paying the IRS: Is It Possible?

You’re drowning in debt and desperate to get out of paying the IRS. When a mountain of debt takes over and you face repercussions such as liens, levies, or even jail, solutions that once seemed outrageous begin to feel realistic. Hence, the surprising frequency with which taxpayers reference the possibility of faking their own death. […]

Getting an IRS Penalty Waiver: What You Need to Know

In an effort to address the unprecedented burden of COVID and its financial fallout, the American Institute of Certified Public Accountants (AICPA) is advocating for the creation of a new tax penalty waiver. IRS Commissioner Charles Rettig may be skeptical of blanket penalty relief, but a few viable options are available for select individuals and […]

Which Documents Should You Gather When Filing IRS Taxes For Somebody Who Passed Away?

You’ve taken on the complicated and emotionally overwhelming task of completing an IRS tax return on behalf of a loved one who recently died. The paperwork may seem difficult or time-consuming, but that’s only the beginning. This will need to be supported by several documents, similar to those you might include with your own tax […]

Employment Taxes and the Trust Fund Recovery Penalty: What You Need to Know — Part III

You’ve been accused of willfully failing to pay employment taxes and are now at risk of being assessed the trust fund recovery penalty. What next? How you respond — and when — could determine whether you’re forced to endure a lengthy interview or appeals process, and more importantly, whether you end up paying the penalty. […]

What You Need to Know About IRS Form 8855 And Its Tax Implications

As an executor or trustee, you may need to make a variety of difficult decisions about a decedent’s revocable trust. This process may force you to deal with several confusing IRS documents, which should be filed in a timely manner to help trustees take advantage of numerous tax benefits. IRS Form 8855, in particular, is […]

Employment Taxes and the Trust Fund Recovery Penalty: What You Need to Know — Part II

Totaling 100 percent of unpaid employment and federal taxes, the TFRP is not to be taken lightly. In this segment of our three-part series on this devastating penalty, we highlight the assessment process and its implications. How is the TFRP assessed? As soon as the IRS determines that employment taxes have remained willfully unpaid, a […]

IRS Publication 559 for Survivors, Executors, and Administrators: What You Need to Know

Losing a loved one is difficult enough as is, but administrative concerns make losses even more traumatic. Executors, in particular, find themselves mired in the confusion of estate planning and IRS drama while they try to process their grief. Thankfully, the IRS offers much-needed guidance in the form of Publication 559. What Is Publication 559? […]

Employment Taxes and the Trust Fund Recovery Penalty: What You Need to Know — Part I

As an employer, one of your most significant IRS responsibilities involves withholding federal and payroll taxes on behalf of your employees. Your failure to properly withhold or pay these taxes could lead to major repercussions, including, most notably, the trust fund recovery penalty. In this blog series, we take a deep dive, examining what the […]