When faced with a request from the IRS, particularly Form 9297, it’s understandable to feel a mix of confusion and concern. This form is sent out by a revenue officer who is requesting specific documents or information from you by a specific date.  If you fail to comply, the consequence is typically an IRS levy on your bank accounts. While receiving such a request feels daunting, it’s important to remember that you do have options and there are steps you can take to handle this situation effectively. Understanding Form 9297 and Its Implications Form 9297 is essentially a summary of the r ..read more

Receiving Form 725-B from the IRS signals an important moment in your financial circumstance that requires your immediate attention. This form is an indication that the IRS intends to meet with you in person, a shift from their previous approach of unannounced visits. Understanding how to handle this situation properly is crucial in maintaining your standing with the IRS and protecting your financial future. What Makes an In-Person IRS Interview Different? When the IRS decides to meet with you in person, it’s because they believe a face-to-face discussion is necessary. Such a request could be ..read more

In tax law, the distinction between a legitimate business and a hobby is critical, particularly regarding tax deductions. The Internal Revenue Service (IRS) rigorously examines businesses that consistently report losses, potentially categorizing them under “hobby loss” rules. This classification carries significant tax implications, especially for high-income individuals who engage in side businesses with the intention of offsetting their income through reported losses. Understanding these rules and learning how to audit-proof a business is essential to maintaining its legitimacy and favorabl ..read more

For businesses that kept their employees on payroll even while struggling to stay afloat during the COVID-19 pandemic, the Employee Retention Credit (ERC) can help them even as they continue to recover from a decline in business. However, some ERC companies led businesses to believe that they were entitled to the credit when in fact they were not. If a business does not qualify for the ERC based on a decline in its gross receipts it must be able to show that its operations were at least partially suspended by a government order. Contrary to the advice of some companies, a stay-at-home order ..read more

In navigating your business’ finances, cash transactions are a critical area of focus for the Internal Revenue Service (IRS). Officials with the IRS need to make sure that payments in cash are accurately reported and not being used to launder money or otherwise avoid proper taxation. At Robert V. Boeshaar, Attorney at Law, we understand that navigating the labyrinth of IRS regulations can be daunting for businesses. While our firm does not handle financial reporting we can help you audit your cash transactions and review your financial books, and determine whether you are at risk of an IRS au ..read more

As we bid farewell to another eventful year, it’s time to put a bow on 2023 and look ahead to what’s to come in 2024. As we sit on the brink of 2024, it’s essential to get our tax affairs in order before looking too far ahead. The end of the year is a critical period for tax planning, serving the dual purpose of closing off Calendar Year 2023 and gearing up for Calendar Year 2024. At our firm, we understand the importance of this transition and are here to remind you of key end-of-year tax tasks essential for both individuals and businesses. It’s crucial to ensure that certain tasks are compl ..read more

Payroll taxes are a significant element of any business’s tax obligations, representing a crucial and often complex element of your company’s financial responsibilities. Ensuring timely and accurate payment of payroll taxes ensures your business operates within legal boundaries and maintains good standing with the IRS. As vital and standard as all of this is, it’s easy to get lost in the day-to-day business or make errors that can accumulate over time. Relying on the experience of an attorney to fine-tune your payroll processes isn’t just good practice; it’s a protective measure against poten ..read more

Dealing with unpaid employment taxes is often a nightmare for any business owner. You never meant for it to get to this point, but the financial strain, mounting stress, and potential legal repercussions can quickly spiral out of control. As your business falls behind on employment taxes, a cascade of problems ensues: Cash flow interruptions, difficulties in managing receivables, and a barrage of IRS notices. And that’s just the beginning; soon bank levies, federal tax liens, and a tarnished credit score compound the situation. We hear from clients and business owners who ask “Can’t I just sh ..read more

Thousands of taxpayers hear from the Internal Revenue Service (IRS) every year about mistakes they made when filing. You are given the opportunity to correct these mistakes and remedy your tax situation before penalties make your situation worse. But, what about when the IRS makes mistakes? Ultimately, IRS revenue agents and revenue officers are human. Human error is an element of life of which we are all well aware and for which we are able to prepare. So, what are some mistakes we frequently see from the IRS and how should you handle them? ​​Lost or Misplaced Tax Returns or Other Documents ..read more

What are you currently withholding from your paycheck? Tax withholdings represent the amount of federal income tax taken out of your paycheck each pay period in preparation for your federal tax bill. Most people do the standard withholding to which their employer defaults. Should you consider changing this number? How might that help you down the line? Adjusting Your Tax Withholding Adjusting your withholding represents an opportunity to ensure you don’t have a surprise tax bill in the future. Employers set a default percentage for this, but they don’t know your exact circumstances outside of ..read more