I own a small service-related business and had an employee who initially worked as an independent contractor, for whom I issued a 1099 but did not report to the IRS. The employee now wants a W-2 issued instead and to pay back taxes, which puts me in a situation where I will be late on payroll tax filing and payment. I am concerned about potential audits, penalties, and how common it is to be this late in filing and payment. Additionally, I want to know if I can issue a W-2 with zero income tax withheld and only social security and Medicare deducted to lower penalties. We are in Texas.
January 8th, 2023
Do they really have to file a 1065 for an LLC that will never have income or expenses, especially if it's a vacation home used for personal use, even though they indicated they would be filing a 1065 for that LLC when they applied for their federal ID?
December 24th, 2023
How do you determine how much of an IRA/SEP/Simple distribution is taxable?
June 1st, 2023
I have a US-based corporation that works with an overseas company. The overseas company wants to send me to various cities in the US to procure clients for them. They plan to purchase a US-based timeshare membership and pay for all upkeep, using it to send me for this work. I will be paid a small fee for the trips and a percentage of any revenue generated. If they are providing accommodations as part of the job, will this be considered income for me or my company? Are there any specific documentation or reporting requirements to avoid issues with US tax authorities?
July 1st, 2023
I have a website I'm planning to sell for a significant amount, but my capital gain is much lower than the sale price. I haven't filed taxes for the last 9 years, during which I had significant cash deposits into my checking account from freelance work and gifts. I'm concerned about the IRS auditing me if they notice a large amount suddenly wired to my bank account. How should I proceed with the sale and address my tax filing issues?
January 4th, 2023
I am finalizing my divorce and we both owe back taxes from 2007 to 2011 to the IRS and the state of CA. I plan to file for bankruptcy (BK 7) in October 2013 for tax years 2007 to 2009 without my ex. How do I protect myself in the final divorce decree wording so my ex can't come after me later when the IRS and state go after her for the balances due? What is the best way to list the community debts under petitioner and respondent with all the tax years 2007 to 2011 to protect myself from her coming after me?
November 7th, 2024