What to Consider When You Owe the IRS
If you find yourself owing the IRS money after you file your taxes, don’t worry—the IRS Restructuring and Reform Bill of 1998 was designed to force better communication between you and the IRS. In other words, they are required to grant you due process rights when they come to collect what you owe. However, if…
Can I Sue my Tax Accountant?
Tax season is upon us, and many of you have probably already finished filing your taxes. However, after compiling all your income information, receipts, W-2s, and expenses, you handed them to your tax accountant—only to have the IRS come knocking for an audit and penalty fees. Yikes! If your accountant made a mistake, does that…
They Sent Form 1099, Not the W-2
All employees, which easily includes unskilled laborers and most (near) minimum wage hourly workers, expect their W-2 Form in January. On the W-2, the employer reports last year’s wages and taxes withheld, employee benefits, etc. Those numbers are then reported to the employee, the Social Security Administration, and to the Internal Revenue Service. This is…
I Don’t Have My W-2 Form
Most every worker in the United States knows to expect his/her Form W-2 no later than January 31st. Even though many tax preparers will process your return by using your final pay statement for the previous year, you are still entitled to receive this form. There are steps you can take. Read on to learn…
Will a Government Shutdown Delay My Tax Refund?
Another government shutdown could certainly slow down tax return processing. This could indeed delay refunds. Here are a few things to think about: 1) Anytime the government “shuts down,” that event does not affect all employees the same. Generally, only non-essential employees are told to stay home. Similarly, only non-essential services are cut. However, these…
When Your Boss is Evading Taxes
Most of the private companies in the U.S. are formed as pass-through entities. This means that the income received goes to the owners, and this income is taxed as personal income tax. Depending on where you live, these income tax rates can get as high as over 50 percent. With that said, these high taxes…
Business License Revoked Due to Unpaid Illinois Taxes
In Illinois, licensed business owners who fail to pay their state taxes can lose their privilege to stay in business. This article addresses some of those situations. Local Business with Unpaid State Income Taxes A former client, who had a cosmetology license with the Illinois Department of Financial and Professional Regulations for more than ten…
Is My Employer Entitled to Change My Pay-Type from W-2 to 1099?
Because we provide businesses, their owners and employees with IRS representation, we receive questions constantly about how to handle small problems. This one came into our Naperville, IL office. Changed from W-2 to 1099? Question: “As an employee, are there any personal legal implications if my employer is classifying me as W-2 for the majority…
Getting Ready for Tax Season – Part Two
Tax season is just around the corner, so it’s time to start thinking about what you’ll need to ensure that this tax return time is smooth and easy. In our last blog post, we mentioned three of the top ways to prepare for the upcoming tax returns. For example, make sure to include your Social…
Getting Ready for Tax Season – Part One
Tax season is almost here! Are you ready? Many people forget about it until it’s too late and spend their days scrambling to collect all the necessary paperwork. However, you don’t need to be frazzled and frustrated with a little bit of planning ahead! The key to successful tax reporting (and avoiding audits!) is to…