When most people hear the term “audit,” they think of the IRS. They also think of a confusing process that can take months or years. In California, business owners need to be aware that an audit by the state Employment Development Department (EDD) can also have costly results if not handled properly.
You may have heard the terms "payroll tax" and "employment tax" used interchangeably. Many people--even some tax professionals!--think that these terms are synonyms. Granted, the terms do have their similarities. After all, they both refer to the taxes owed by an employer.
While the 2017 election season pales in comparison to last year’s cycle, it is no less important for those who are in office on Capitol Hill and in state legislatures around the country. Senate Republicans may be feeling the pressure of producing at least one major piece of legislation before the year is out, and after the failure of health care reform, tax reform is a worthy goal.
If you’re working in the gig economy, you may not be setting aside enough to pay your taxes. This is especially true if you’re used to working as an employee, receiving a W-2 and paying your taxes once a year. As a Lyft driver, a food delivery person or an AirBnB host, you’re probably classified as an independent contractor. That means receiving a 1099 and paying estimated taxes on a quarterly basis.
With tax season rapidly approaching, the IRS warns that businesses could find themselves at risk with regards to cybersecurity. The agency recently stated that there’s been an uptick in identity thieves seeking out employees’ W-2 forms due to the sensitive information they contain. That information, in turn, can be used to falsify a wide variety of documents.
The offer in compromise is a special avenue presented by the IRS that allows you to pay a part of your delinquent taxes, and be forgiven for the rest.
2017 has been a difficult year for many Americans. With multiple hurricanes striking coastal areas and fires rampaging in California, there is significant loss and a heavy burden to recover from the storms.
The IRS frequently provides notice about potential scams that may be directed at taxpayers. They want people to know exactly what sorts of tricks are being used to obtain sensitive information from individuals.