Aug 302011
 
How Long Does The IRS Have To Audit Income Tax Returns Or Collect Back Income Taxes?

Many people wonder just exactly how long the IRS has to begin an audit of an income tax return or to collect unpaid income taxes.  The answers to these questions generally depend on whether a return was ever filed and what was disclosed on the return. Sections 6501 and 6502 of the Internal Revenue Code and the accompanying regulations provide the starting point for determining the time limit the IRS has to begin an audit or attempt to collect unpaid taxes.  The general rule is that the IRS has 3 years from the date the return is filed to begin More…

Aug 222011
 
Payroll Taxes And The Trust Fund Recovery Penalty

If you own a business and have employees then you likely familiar with the requirement to remit payroll tax to the IRS.  When an employer pays compensation to their employees, they are required to withhold certain taxes and remit these taxes to the IRS.  When the employees file their tax returns, the IRS is required by law to give those employees the benefit of all taxes withheld by their employers whether or not such taxes were remitted to the government.  If an employee is given a W-2 that reflects withholding, they can file their tax returns and receive a refund More…