Question: In IRS Publication 3402, Taxation of Limited Liability Company, it states that an LLC can elect to be classified as a S corporation. Does an individual member of an LLC that has elected S corp status have the same protections from personal liability for payroll taxes as an individual member of an LLC that has elected C corp status? Stated differently, does the IRS have to conduct a trust fund investigation to impose personal liability on individual members of an LLC that has elected S corp status? Continue reading…
Quote of the Month – March 2013
I, not events, have the power to make me happy or unhappy today. I can choose which it shall be. Yesterday is dead, tomorrow hasn’t arrive yet. I have just one day, today, and I’m going to be happy in it. Groucho Marx
Accounting Firm Hit with Trust Fund Penalties for Payroll Taxes Owed by thier Client
We mentioned in a previous blog that individuals such as corporate officers and employees can be held responsible for back taxes if the company fails to pay payroll taxes. However, other parties not within the company can be held responsible for back taxes such as lenders and accounting firms. In this case, the accounting firm hired to manage the client’s payroll was held responsible for $325K of Trust Fund Penalties. This is an interesting case because it shows that the IRS can go after third parties for trust fund penalties. Continue reading…
Testimonial
Thank You so much, you really helped me with my problem. And I’m 100% satisfied with the help you have given me and now a weight is lifted. GOD BLESS!!!! – Arielle W.
Tax Question – Michigan Registration Renewal
Question: Where do I report the cost for renewing my tags with the State of Michigan? Continue reading…
New Website Video – Tax Attorney vs. CPA
This seems to be a topic that comes up time to time. Dealing with tax issues can be serious and stressful. An assumption can be easily made that an attorney is needed. However, a CPA can also represent you on IRS and State of Michigan issues. Tax Attorney or CPA?
Testimonial
We would highly recommend ALG Tax Solutions to everyone. AJ answered all our questions that we had. It was a nice feeling to know that we had someone who was looking out for us. Jeff & Maryellen K
Tax Help Question – Receiving 1099-R Late
Question: My taxes are still straightforward and I processed them online again just a couple days ago…all was good, until my previous employer finally just sent me my 1099-R in the mail in regards to the 401k contributions. Because I already submitted everything, this was not accounted for…is that going to be a problem? Or is there a way to add this?
New Website Video! – Penalty Abatement
I am still not used to shooting these videos. You would think it will get easier over time. We will see! Penalty Abatement
Tax Preparer Due Diligence
Your tax return was selected for audit. The auditor reviewed your information and disallowed some of your deductions. As a result, you owe additional taxes including penalties and interest. How could this happen? You been using a trusted CPA for years to prepare your tax returns.