Tax season might be over, but that doesn't mean you're safe from the IRS. Businesses of all sizes in Ohio can face tax audits, which can feel stressful and overwhelming. But don't panic! Here's a breakdown of what to expect and how to prepare if your business gets chosen for an audit. What is a tax audit? Think of a tax audit as a double-check on your business tax return. The Internal Revenue Service (IRS) will review your tax forms and documentation to ensure everything is accurate and you've paid the correct amount of taxes. Why do businesses get audited? There are a few reasons why your bus ..read more

Estate planning’s primary goal is for you to pass down assets to your beneficiaries. While many people don’t think about this aspect of estate planning, finding options to ensure as much as possible finds its way to them is crucial.  Certain estate planning options, such as trusts, have many benefits to consider. Thinking through all of these may help individuals to make decisions that are best for their circumstances.  2 types of trusts Trusts are classified as either revocable or irrevocable. The primary difference between these is that revocable trusts can be altered or canceled ..read more

Tax planning is an important part of owning and running a business. By implementing strategic tax planning measures, businesses can enhance cash flow, improve profitability and better ensure compliance with relevant tax laws. Several tips that can allow you to more effectively engage in tax planning for your business are worth considering. They include the following. Understand your tax obligations Before utilizing tax planning strategies, you must know your business tax obligations. This includes all information related to local, state and federal taxes. Choose the right business structu ..read more

Many business owners and individuals fear an audit when doing their taxes. They are worried that they’re going to make a mistake and that the IRS is suddenly going to swoop in, looking for evidence of fraud and potentially handing out financial fines – or even making arrests. But how likely is that to happen? Statistically speaking, audits are very infrequent. As a general rule, roughly one out of 100 Americans will face an audit. But it can be significantly smaller than even that 1%. For example, the rate was just 0.63% in 2020. More than 99% of people who filed their taxes never heard from t ..read more

If you have heard of liens, levies and garnishments, you might feel like you’re stuck in a complicated mess. After all, the tax code is complicated and dealings with the IRS can seem even more so. It is important to understand what these mean, though, and to know how to avoid them. After all, any of these signal financial trouble, which is why you should be aware of what they are. Liens When you owe money to the government, they can place a lien on something you own, like a house or car. It is sort of like a slap on the wrist, but also a reminder to pay what you owe or at least make arrangemen ..read more

If you are facing collection action from the Internal Revenue Service (IRS), you need to take action. This is not a time for avoidance.  There is typically a path to negotiation. The following tips can help you create a workable payment plan that will get you current on your payroll taxes. File those returns As long as you have unfiled employment tax returns, you can’t negotiate a payment plan to pay off your balance. This should be your primary focus. The same applies to making current any outstanding quarterly payroll taxes.  Familiarize yourself with Form 433-B This is the Collect ..read more

An IRS tax audit is not anything a business person or individual wants to deal with. However, sometimes, an audit notice letter may arrive unexpectedly. This means the IRS has selected someone’s tax return for review. If this happens to you, there is no need to panic. Instead, approach the audit with a level-headed and prepared mindset. Consider the following tips to handle an IRS tax audit like a pro. Understand what is required from you Reading the audit letter is the first step to understanding what the IRS requires from you. It will typically outline the specific items or areas of your tax ..read more

When the IRS conducts an audit of your tax return, it thoroughly examines your financial records and transactions to ensure accuracy and compliance with tax laws. After completing the audit, the IRS issues a report detailing its findings, which may include adjustments to your tax liability, additional taxes owed or penalties assessed. If you disagree with the audit results, you have the right to appeal the findings. Concerning audit results could be rooted in errors in the IRS's calculations, misunderstandings about tax laws or regulations or missing information that was overlooked during the ..read more

Tax laws and forms are complicated, especially if you’re a business owner. You understand that claiming deductions is a common practice to reduce taxable income and lower tax liabilities. However, if the IRS disallows certain business deductions during an audit or review, it can have significant financial and legal ramifications. The IRS only audits a small percentage of tax returns each year, so most people filing a 1040 have little to worry about. But if you are self-employed, your risk of an audit increases. Your Schedule C states your profit and losses. It also includes a section to record ..read more

There are few experiences as intimidating as dealing with the IRS. The IRS can intercept your wages, seize or put liens on your property or even freeze your bank account. If you owe unpaid taxes, it is in your best interest that you figure out how to resolve the matter. One of the options you can consider is striking a deal with the IRS. And while the IRS won’t always let you have your way, there are instances when you can negotiate your tax debt through what is known as an offer in compromise (OIC) arrangement. Understanding offer in compromise Basically, this is an agreement between you and ..read more