TaxCure Blog

If your business has unpaid payroll taxes, the IRS will investigate to find responsible parties to assess the Trust Fund Recovery Penalty (TFRP) against. The agency can assess this penalty against business owners, managers, and even employees – and once it’s assessed, your options become much more limited. 

If you pay an independent contractor, you generally just cut them a check or send another type of payment, and then, at the end of the year, you give them a 1099 form noting their total payments for the year. Similarly, if you pay dividends to a shareholder, you just send them a payment and let them worry about the taxes.

Yes, you can reverse an IRS bank levy – but it’s hard. Typically, once the levy has hit your account and the funds are frozen, the IRS will only reverse the levy in cases of error, severe financial hardship, or if they believe doing so will help them collect the tax more effectively. The best option is to respond to the IRS proactively before they send a levy notice to your bank – but if it’s too late for that, reach out to a tax pro to talk about reversing the levy. 

The New York Department of Taxation and Finance has reached out to you about an audit, a tax assessment, a collection action, or another very specific New York state tax problem. Your first instinct is probably to call your CPA – after all, they help with your taxes. But before reaching out, be aware that they might not have the experience you need. 

Taxes are incredibly confusing for the average person, which is why the IRS allows taxpayers to seek outside assistance for help with filing taxes, paying taxes, and addressing tax issues. But not all tax advice is created equal—and following bad advice could land you in serious trouble with the IRS.