How IRS Bank Levies Impact Nonprofits and Religious Organizations When federal tax liabilities remain unpaid, the IRS may take enforcement action to collect the balance. One of the most disruptive tools is a bank levy, which allows the IRS to seize funds directly from a taxpayer’s bank account. For nonprofit and religious organizations, a bank levy...
How Sale-Leaseback Transactions Work in Commercial Real Estate Sale-leaseback transactions are a common structure in commercial real estate where a property owner sells real estate to an investor and leases it back for continued business operations. This structure allows operating companies to unlock capital tied up in real estate while maintaining...
How IRS Wage Levies Work and Impact Taxpayers When federal income tax liabilities remain unpaid, the IRS may take enforcement action to collect the outstanding balance. One of the most aggressive collection tools is a wage levy, which allows the IRS to garnish wages directly from a taxpayer’s employer. An IRS wage levy can result in a significant p...
How IRS Bank Levies Affect Businesses With Payroll Tax Debt When federal tax liabilities remain unpaid, the IRS may take enforcement action to collect the outstanding balance. One of the most severe collection tools is a bank levy, which allows the IRS to seize funds directly from a business bank account. For businesses, a bank levy can immediately...
What Is an IRS National Research Program Audit and How It Works When the IRS National Research Program, or NRP, is a type of audit designed to collect data about taxpayer compliance. Unlike standard audits that are triggered by specific issues, NRP audits are often randomly selected and used to improve IRS enforcement models. Despite their research...
IRS Penalties Can Significantly Increase Tax Liability When taxpayers fail to file tax returns or pay taxes owed timely, the IRS may assess substantial penalties and interest in addition to the underlying tax liability. Common assessments include late filing penalties, late payment penalties, and accrued interest. In certain situations, taxpayers w...
Offer in Compromise Used to Resolve Significant IRS Tax Debt Taxpayers facing substantial IRS liabilities may qualify for an Offer in Compromise when paying the full amount would create financial hardship. Our client owed approximately $305,000 in federal tax liabilities and sought a resolution that would avoid prolonged IRS collection activity. Af...
Fraudulent Tax Filing Results in IRS Liability Identity theft and fraudulent tax return filings can create serious IRS issues for taxpayers when returns are filed using stolen Social Security numbers. In this case, a fraudulent tax return was filed using our client’s Social Security number to claim a large refundable credit. As a result, the IRS as...
Texas Sales Tax Audit Leads to Significant Penalty Assessment Texas sales tax audits conducted by the Texas Comptroller can result in substantial additional tax assessments, penalties, and interest for businesses. When disputes arise over audit findings, taxpayers may challenge the assessment through a Redetermination Hearing to seek adjustments an...
How Sale-Leaseback Transactions Work in Commercial Real Estate Sale-leaseback transactions are a common structure in commercial real estate where a business sells its property to an investor and then leases it back to continue operating at the same location. For investors, these transactions can provide stable rental income supported by an operatin...
Structuring Business Acquisitions for Tax Efficiency and Multistate Operations Business acquisitions often involve complex legal and tax considerations, especially when the target company operates across multiple states. Buyers must evaluate transaction structure, financing, tax consequences, and regulatory compliance to ensure the deal aligns with...
How Estate Administration Works in Complex Probate Cases Estate administration is the legal process of settling a deceased person’s financial affairs through probate court. This process includes identifying and managing assets, resolving outstanding debts, addressing creditor claims, and distributing property to beneficiaries. When an estate includ...
How Texas Sales Tax Audits Create Additional Tax and Penalty Exposure Businesses operating in Texas must comply with sales and use tax requirements enforced by the Texas Comptroller. When discrepancies are identified during an audit, the state may assess additional tax, interest, and penalties based on its review of the company’s records. Sales tax...
How CARES Act NOL Carryback Rules Created Refund Opportunities The CARES Act introduced temporary changes to net operating loss rules, allowing taxpayers to carry back losses from 2018 through 2020 for up to five years. This provision allowed businesses and individuals to offset prior taxable income and claim refunds for taxes paid in earlier years...
IRS Worker Classification Audits and Payroll Tax Risk for Businesses Businesses that rely on independent contractors may face IRS scrutiny over whether those workers should be classified as employees. Worker classification directly affects payroll tax obligations, including federal income tax withholding, Social Security, and Medicare taxes. If the...
IRS Ends Automatic Penalties for Late Form 3520 Filings The IRS recently implemented an important change affecting taxpayers required to report foreign gifts, inheritances, and certain foreign trust transactions using Form 3520. Previously, when taxpayers filed Form 3520 late, the IRS automatically assessed penalties even when a reasonable cause ex...
How Trust Structures Can Create California Tax Nexus State tax laws can significantly impact how trust income and investment earnings are taxed. A trust or related entities may create a state tax nexus, which allows a state to impose tax on income even when assets or beneficiaries are located elsewhere. California applies complex rules to the taxat...
How IRS Tax Assessments Arise From Withholding Errors Taxpayers receive credit for federal income taxes withheld from wages as reported on Form W-2. When the IRS cannot verify withholding or believes it was not properly reported, it may issue a notice proposing additional tax based on its internal records. In some cases, discrepancies between emplo...
How a Family Limited Partnership Supports Real Estate and Estate Planning Real estate investors with substantial property holdings often face complex issues involving liability exposure, tax efficiency, and long-term asset management. Without a structured ownership framework, investors may be exposed to unnecessary legal risk and limited flexibilit...
FBAR Reporting Requirements and Risk of Civil and Criminal Penalties U.S. taxpayers with financial interests in foreign bank accounts or offshore entities may be required to file Foreign Bank Account Reports, known as FBARs, with the U.S. Treasury Department. These reporting requirements apply when the total value of foreign accounts exceeds certai...
