Author Archives: Don R Walker

If you have recently received an IRS lien and would like to know the implications surrounding it, we’re here to help! Legal jargon and the steps to take to ensure that you’re handling the situation in the right manner can be stressful without proper research. At the very least, what you shouldn’t do if you get a notice for payment from the IRS is to ignore the situation altogether! There can be negative implications on your records and your property if you don’t work towards remedying and replying to an IRS lien notice.

Here is an IRS lien definition that can help you understand the main point surrounding the meaning. An IRS tax lien is when you neglect or fail to pay a tax debt and the government thereby issues a legal claim against your property including any financial assets, personal property and real estate that you may own.

IRS Lien or Levy

An IRS lien doesn’t mean that the government immediately seizes your property, it just protects and secures their interest on it. With a levy however, the government can seize and sale any type of personal property to settle the debt.

Please keep in mind, if you don’t answer the IRS to pay or at least make arrangements to pay or work towards appealing your tax debt in regards to responding to your lien notice, than they reserve the right to issue a levy.

What happens when the IRS files a lien?

Before a lien is officially created, the IRS first assesses your liability and puts your balance due in the books. You will then receive a pre IRS lien notice in the form of a bill titled Notice and Demand for Payment. After these two steps, if your tax debt has not been paid in full after 10 days than a lien is filed. If you neglect or refuse to pay the debt on time than the IRS files a public document called a Notice of Federal Tax Lien to alert creditors of the government’s legal right to your property.

How do I get rid of an IRS tax lien?

It is recommended that you respond to the bill notice either by contacting the IRS yourself through the necessary measures described on your Notice or immediately seek out legal assistance to act as the intermediary in the situation so they can conduct and offer you proper Lien solutions.

If you disagree with the IRS’s determination, you have a right to a hearing and you may *respond within the time limit of the Notice with a request for an IRS Lien Appeal.

*It is recommended by the IRS government site not to send the request to the Office of Appeals as this may delay the process but to send it to the address provided in your letter explaining your Appeals rights.

Depending on your tax history and payment status you may be eligible for Discharge of Property, Subordination or Withdrawal.

Ultimately, the best way to remove a lien is to pay the amount in full whereby the tax lien will be released after 30 days. Within the 30 days it is the IRS’s responsibility to grant you a Certificate of Lien Release as well as releasing the title encumbrance from your home. If the IRS has not given you this Certificate within the 30 after you’ve paid off your tax debt than you have the right to file a lawsuit against the IRS (but not against any specific IRS employees.)

How long does an IRS lien stay on your property?

Once the IRS has a tax lien in place, it can stay on your property for a total of 10 years.

Do IRS liens expire?

Tax liens can be extended beyond 10 years with variable amounts of time either voluntarily by you or through legal operations. There are several scenarios where extensions can take place from submitting and negotiating an Offer in Compromise, filing an IRS Form 900, having a Collection Due Process appeals hearing or even filing for bankruptcy.

How do I avoid an IRS lien?

The best way to avoid an IRS lien is to file and pay your taxes on time. Remember, if you are unable to pay, reach out to the IRS in order to make payments over time with the several payment options they have available.

As long as you are actively responding and sending in the required information asked upon you, you can only help your situation. By no means should you ignore the letters your receive altogether. Remember, if you fail to respond to make arrangements or pay once a tax lien has been filed, you may eventually risk having your property seized if the IRS decides to issue a levy!

If you have recently received an IRS tax lien and require legal assistance in the Fort Worth, TX area, contact Don R. Walker, C.P.A. at 817-905-1040!

As a business owner, you have a responsibility to the United States to pay payroll tax for all of your non-contracted employees. These wages are figured according to the IRS and are available on the IRS website. While most employers have an accounting program or professional that keeps track of these schedules, it’s important to understand the tax system in order to plan and track payments accurately. This can help keep you from accruing fines and Form 941 (Rev. January 2018)Form 941 (Rev. January 2018)other ramifications that can stem from changing laws or miscommunication.

 

What Payroll Tax do Employers Pay and When do I Pay Payroll Tax?

For employers, payroll taxes can be paid either semi-monthly or monthly, depending on your company’s tax liability amount. This payment schedule will be arranged at the beginning of the year and will be monthly for businesses who reported less than $50,000 in tax liability in the previous quarters. Semiweekly payments will be arranged for businesses with more than $50,000 in tax liability. If your business is required to pay semiweekly, your payment schedule will depend on your company payday. Monthly paid companies have a due date of the 15th of the following month. Form 941 (or 940) should be filed every quarter reporting the monthly tax amounts made as well as including any leftover balances. Late deposits accrue a 5 percent penalty for every month they are not fully paid.

Form Details

In general, employers must file a quarterly Form 941 to report each month’s withholdings from employees as well as any taxes paid by the employer. However, if you are a small business owner that paid out $1000 or less during the year in federal and state withholdings, you may be eligible to file a Form 940 Annual Payment form. It’s always best to check with a professional before completing any tax forms, payment, or audits to ensure accuracy.

These taxes will be paid at the local, state, and federal level, and include FICA. They should be paid on every employee that works at your business. Employees are defined as a worker who is controlled by the employer. This includes details such as start and end times, scheduled lunch breaks, driving a company vehicle, or being told in what manner to complete a job. A contract worker is defined as a worker that schedules his or her own work hours, is paid by the job instead of an hourly or salary rate, and drives his or her own vehicle. If you aren’t sure if a worker is contract or employee status, a skilled accountant or tax professional can help.

What is Payroll Tax Used for?

Whether you’re an employee or employer, you pay taxes on every dollar you earn. While this may seem like a nuisance, our tax dollars fund vital projects, programs, and committees that help less fortunate, ill, and elderly. Our federal taxes are collected to fund a number of government-affiliated social insurance organizations that help assist elderly, ill, handicapped, and others with disabilities. These funds are also used for programs related to our safety and well-being. Some Programs and organizations affected by taxes are:

• Social Security
• Medicare
• Medicaid
• CHIPS
• Food Stamps
• HUD
• Other Low-Income Housing Programs
• Unemployment
• Child Abuse and Child Neglect Programs

At the state level, taxes are used for multiple reasons that can include education and school funding, transportation and road work, healthcare, and much more. In fact, they help to fund:

• Low-Income Healthcare
• Correctional Facilities
• State Education Programs
• State College Funding and Grant Programs
• Parks and Recreation Facilities
• Public Employee Salaries
• State Police

While nobody enjoys paying taxes, each business in the U.S. must comply and contribute to the tax pool. In order to ensure that your business pays its taxes timely and accurately, call the professionals of Don R. Walker, C.P.A. to help. Our experts can help with:

1. Quarterly and Annual Tax Preparation
2. Business Registration
3. Tax Amendments
4. Past Tax Year Filing
5. Tax Form Review
6. Assistance With IRS Regulations and Guidelines

When your business needs payroll tax preparation assistance that can be relied on, there’s only one team to call. The Don R. Walker, C.P.A. professionals have years of experience in tax law and scheduling so you can rest assured that your company’s taxes are completed efficiently, accurately, and timely for stress-free compliance. We provide tax services throughout the Fort Worth, TX area to deliver stress-free payroll tax completion for your business that’s correct, complete, and on time so you never have to worry about fines or other consequences. When you need payroll tax preparation for your business in Fort Worth, TX, call 817-905-1040 to reach our experts today.

A lot of people tend to assume that accounting and bookkeeping are the same, but there are a couple of differences between the two. While bookkeeping and accounting deal with financials, one records financial data and the other interprets it. As a bookkeeper, the job involves recording all financial transactions that take place. As an accountant, they analyze and summarize the data that has been recorded by a bookkeeper. Both are integral in keeping the financial aspects of a business in order, but you will need a bookkeeping service in order to make sense of your financials. Below are the types of bookkeeping that are used for bookkeeping service.

Types of Bookkeeping

• Single-Entry: If you have a small business or have minimal transactions that take place, single-entry bookkeeping is the method that should be used for your business. It’s not the most detailed method for bookkeeping as it only requires you to record revenue and expenses. This wouldn’t work for a bigger business because it doesn’t require the need to record accounts payable or receivable.
• Double-Entry: For larger businesses that have two or more accounts, a double-entry system is needed. It’s more complex but considering bookkeepers have to record debits and credits of transactions. Because of how detailed it has to be, it is very reliable for financial records and you can see where you have gained or lost in profits.

To get bookkeeping services in Fort Worth, TX, call 817-905-1040 today! If you need help with an IRS Lien or need assistance with a wage garnishment, Don R. Walker, C.P.A. is at your service.

Do you want to guess what percentage of small businesses are audited by the I.R.S.? Over 2%. That means that one in fifty small business owners will have to go through this supreme headache. Your odds of being audited might go even higher if you make one of these common tax mistakes!

Common Small Business Tax Mistakes

Mishandling Receipts and Payments

Even the smallest of companies can take advantage of I.R.S. tax breaks, and all of it starts with proper record keeping. That means hanging on to your business related receipts. One of the most frequently made and very expensive mistakes to make is neglecting your expense receipts, so make sure to record them on a weekly basis.

Not Saving Tax Money

Depositing money into a separate account for your tax funds is absolutely essential. You want to store these savings in a place where you won’t be tempted to spend it, because it can be quite challenging to catch back up when you get behind.

Filing Too Many Deductions

Be very careful about what you claim as a business expense, as well as how much you claim (especially if you’re just starting your business). Instead of guessing about what you claim in your deductions, try looking at the I.R.S. website for insights.

How Not to Get Audited by the IRS

We laud creativity in the workplace, but tax season is not the proper time to get creative. There are some bad habits that will consistently come back to haunt you when you pay your taxes, such us…

• Looking for Exploits, Instead of Opportunities
• Trying to Hide Revenue
• Bypassing Taxes by Dealing in Cash
• Putting Off Tax Related Documentation
• Entrusting Your Taxes to a Disorganized Employee or Family Member

Adjusting your mindset about taxes is one of the most important steps you can take to lower your chances of being audited. Instead of looking small business tax breaks to exploit, search for opportunities to streamline your tax documentation and filing process. Tax season champions are those that consistently record and store tax information on a day to day (or at least weekly) basis. Never entrust your tax work to an employee who can’t handle basic documentation management. Finally, remember this: while they still want you to pay your taxes, federal, state, and local government organizations consistently publishes new articles and guidelines to help you take advantage of tax incentives and avoid common tax mistakes.

Partner With a Trusted Tax Consultant

Proper, consistent documentation is the best way to avoid getting audited by the I.R.S. However, if you find yourself in need of a Fort Worth I.R.S. tax settlement advocate, the helpful team at Don R. Walker, C.P.A. would love to assist you! Feel free to call us with any questions at 817-905-1040! You also find more tax tips here!

Are you dealing with tax debt? You are not alone. Many business owners and even individuals find themselves taken by surprise when they learn they have fallen into debt. This stressful situation can lead you to panic, wondering what it is you can do to resolve the situation. At Don R. Walker, C.P.A., we understand that finding a tax settlement solution can be difficult, however, we have compiled a few tips that can assist you during this time. Remember, you have some time to gather yourself and use these tips to get your debt taken care of.

Our Tips For Your Case

Organize Your Documentation

First things first: When it comes to dealing with the IRS, you will need to have all of your paperwork handy and in order. Gather together all relevant documentation, including any paperwork from the IRS themselves. This will make it easier on you as well as them and looks good for when you are reviewing your case.

Contact Your CPA

As with any other situation, you want someone in your corner to support you and possibly fight on your behalf. Contacting your CPA is the next logical step, as they will be able to tell you all of the available settlement options and review the paperwork to see if there is an error present. Don’t have a CPA? Take some time and research to find the best firm or individual for your needs to ensure you have someone you can work with. After you review with your CPA the options, they may recommend an attorney for your case.

Do Not Procrastinate

While you do have some time to get organized and review your options, do not take this to mean you do not have to get started on a solution. Procrastinating can make the debt worse and even lead to further issues. The IRS may even take more serious actions towards you. Getting everything ready and seeking a solution in a timely manner can prevent increased debt.

Tax debt can be scary, but there is good news. You do not need to deal with it alone. Don R. Walker, C.P.A. provides tax solutions for your case and will work with you and the IRS towards a tax settlement. Do you need assistance in Fort Worth, TX? Give us a call today at 817-905-1040 for your tax settlement needs.

Is hiring a CPA the right move for your small business? That’s a question that every business owner has to consider as their company starts growing in earnest. While there are numerous factors to weigh in your decision, here are three potential ways you could save by hiring a CPA.

Savings #1: Penalties Avoided

It’s an obvious, but time honored fact: most business owners hire a CPA to help them avoid costly penalties during tax season. It takes a lot of effort to arrange your taxes, especially if your business extends across state lines. While bookkeeping programs can take some of the stress off, these tools are still reliant on accurate input from your team. Hiring a certified accountant is a great way to ensure that you aren’t hit with an expensive tax penalty after filing.

Savings #2: Time Recovered

Try counting the number of hours you spend doing your accounting on your own each year. Consider the work that you could have achieved during that time and try to calculate the total potential value of those hours. By utilizing a CPA’s assistance, you can potentially recover dozens of man hours for critical work in other parts of your business.

Savings #3: Deductions Found

Unless you’re a tax-filing superman (kudos if you are), there’s a good chance you’re missing out on potential deductions. It’s not your fault either. Laws change over the years and potential deducts change with them. That’s why it pays to hire a professional that keeps up on the latest tax regulations. Who knows how much money you could be saving each year? Hint: a CPA does.

If you’d like more information about CPA’s, accounting services, or tax deductions, feel free to call our office at 817-905-1040. We’d be happy to talk with you!

America has a long history of taxing- from sugar to tea to property, we have started wars, protests, and eventual acceptance over it.

How Was It Created?

The first date of Tax Day appears in 1861 in the Revenue Act to help fund the Civil War. It was found unconstitutional and dismissed. Officially created in 1913 as the Sixteenth Amendment, America now had a law that made it legal for the government to tax citizens. For 40 years, the filing date fell on days in March, but in 1955, Congress passed a new law that declared April 15 as the official “Tax Day.” Some speculate that the government moved the date further back so they have longer to dole out refunds.

What Day Is It?

Nowadays, Tax Day almost always falls on April 15. It can sometimes take place on April 16 or 17 due to weekends or holidays. Emancipation Day is celebrated on the weekday nearest to April 16, so sometimes Tax Day can get pushed to that following Monday. In one case in 2007, the storm Nor’easter affected the majority of the east coast of the United States during Tax Day. The government was forced to extend the filing deadline all the way until June as many people were displaced and obviously had other things to worry about besides paying the government.

Whether you love it or hate it, taxes have been part of America for centuries, and have seemed to work out for our democracy for the most part. If you need tax preparation help in Fort WorthFort Worth, TX, call Don R. Walker, C.P.A. at 817.905.1040 today.

An offer in compromise is a tax resolution and agreement between an individual or business with the IRS that allows you to settle for a lesser amount than what taxes are owed. While there are many reasons one may file for an offer in compromise, the desired outcome is always that the IRS accepts your offer and will work with you. It can be a very detailed process to start, which is why we have compiled a few tips on what you can do when filing for an Offer in Compromise.

Our Tips

Make Sure You File Back Tax Returns and Avoid More Tax Debt

While you are filing, it is important to keep yourself out of further tax issues and show that you are an upstanding taxpayer. Make sure you file the back taxes you are required to and do everything possible to prevent tax debt, as this debt will reflect poorly with the IRS.

Be Thorough in Your Offer In Compromise Filing

When you are filing for an Offer in Compromise, be sure to compile all of the information you need to file. Be as detailed as possible and make sure all numbers, statistics, and income levels are listed properly and completely. Ensure you have at least three months of tax and business documentation for your Offer in Compromise. If filed improperly, without the right documentation, it can lead to rejection and the need to refile.

Call a Professional

While it is good to have confidence when dealing with your business, it is important to have a professional CPA handle your Offer in Compromise. CPAs are trained specifically to deal with the IRS and handle these situations, which means from start to finish, you can rest assured your filing is completed completely. We will work with the IRS on your behalf. Want to get started on an Offer in Compromise? Call 817-905-1040 for your needs in Fort Worth, TX today.

Do you own a small business? If so, chances are that you dread tax season. This is normal, and very common, because there are plenty of small but significant rules, and breaking even one can send the IRS after you with everything they’ve got. This year, don’t get audited over a simple filing mistake. Check out these tips, or give us a call at 817-905-1040 for assistance!

Failure to File

Okay, so this should be obvious, but the fastest and most surefire way to be audited by the IRS is to not file your taxes at all. Forgetting to file or filing late can quickly land you in hot water.

Errors

Here’s another obvious one for you. The whole reason the IRS conducts audits is to address errors, so if you have any errors, you have a good chance of being audited.

Home Office Deductions

Home office deductions can be really great, but there are a ton of stipulations to keep in mind. The rules are quite intricate, so if this is something you want to claim, make sure to contact a CPA.

Rounding Numbers

If something was originally $298.50 and you round that number to $300 on your taxes, that’s tax fraud in the eyes of the IRS, plain and simple. Make sure that you aren’t rounding any of the numbers in your books or your taxes.

Too Many Losses

Sometimes, businesses have losses, and that is a valid claim for your taxes. However, too many losses will be a red flag to the IRS. To make sure your claims are valid, be sure to consult with a CPA to make sure your claims are accurately filed.

Too Many Expenses

Just like losses, too many claimed expenses will be a red flag. Keeping good books is essential, so when tax time comes, you have a solid record of all expenses.

Too Many Charitable Donations

If you like to deduct your charitable donations, that is of course a great idea. However, some businesses use charitable donations as a part of tax fraud, so if you have too many, you may be inviting an audit!

An Unprofessional Tax Preparer

If the person you’ve used to prepare your taxes in inexperienced, or out of a pop-up mall store, chances are they are going to make mistakes, and those mistakes fall on you! Make sure to use a reputable CPA for your tax services!

If you own a small business, tax season can be quite a hassle. However, you don’t need to do your taxes alone, and our team is here to help. If you would like professional assistance with your taxes this year, as well as expert advice, give us a call at  817-905-1040 to get started. If you are looking to do your taxes alone, check out these helpful tips and tricks.

Prepare As You Go

Actively managing your financial records throughout the year will help you keep all of your ducks in a row, so to speak.  If you wait until the last month, you’ll be scrambling to get everything together, and some things may fall through the cracks. Things that are missed could lead to an audit, or other issues in the future.

Use Deductions To Your Advantage

There are plenty of deductions that small business owners are eligible for. That includes start up costs, any usage of your vehicle, and much more. Be sure to research all of the deductions you might be eligible for. If you are uncertain, our experts are happy to assist you.

Watch Out For Ghost Assets

Ghost assets are things you’ve used for your business, but haven’t been properly inventoried. Imprecise inventories can really hurt you when it comes to tax time, so using a precise inventory and asset management program will prepare you for tax filing, as any future audits.