Lowrance Law, LLC

IRS has a great Small Business web page at IRS Business.  Check out starting, operating or closing a business at Start/Close Business.  Also, check the latest business news that gives small business owners information about the latest mileage rates, worker classification (employee vs. independent contractor) and other announcements See Business News.  Get the IRS information on business expenses at Business Expenses.

But as always, remember this is IRS general information.  For a more in-depth research and analysis check with your tax attorney or accountant.

Bill Lowrance

{ 0 comments }

Most businesses withhold payroll taxes from employees’ salary checks.  Taxes withheld are income, social security and medicare payments.  Other withholding items are for State taxes, retirement funds and unemployment funds.

Right now in the hard economic times, business owners may be tempted to use the money they deduct from their employee’s wages for other expenses.  The only problems is that the deductions are not the employer’s funds.  The funds should be deposited into special accounts for payment to the proper taxing authorities. 

If the employer does not make timely deposits, there will be penalties to pay.  In addition, if the business goes down, the owner or “responsible person” in the business may assessed the missed deposits under IRC section 6672–the 100% penalty provision.  The “responsible person,” usually the business owner will personally owe the money not properly withheld and paid over to the IRS.

If you, as a business owner, are subject to the 100% penalty assessment, contact your tax attorney right away.

See the IRS publication Click Here

Bill Lowrance

{ 0 comments }

Tax Havens Offshore Financial Secrecy & The IRS

October 23, 2008

An estimated $5 to $7 trillion dollars are held in offshore tax havens according to Secretary General Angel Gurría of the Organization Economic Cooperation and Development (OECD) headquartered in Paris Click Here OECD.  Why is this important? The IRS is gearing up to increase enforcement against US taxpayers hiding money in offshore tax havens.  The OECD is […]

Read the full article →

International Tax Law Foreign Bank Accounts & You

October 20, 2008

  You may not think international tax law applies to you, but it may.  Do you have a bank account outside of the United States?  If so, you are supposed to report it on your tax return.  There is a check box on the tax return to report any foreign bank accounts.  If you do […]

Read the full article →

X KMPG Partners Going To Trial For Tax Evasion

October 14, 2008

 Reuters reports, Reuters Article, that four former KMPG partners are going to trial on charges of allegedly cheating the government out of more than $1 billion through the use of improper tax shelters for hundreds of wealthy clients.  The trial is scheduled this month.   The four men are charged with conspiring to evade taxes for more than 600 […]

Read the full article →

States To Increase Tax Enforcement Efforts

October 11, 2008

   According to an Associated Press article, many states are increasing tax enforcement and collections efforts as state revenues decline in our present economic condition. States like New York, California, Massachusetts and Illinois are ”beefing up” tax enforcement and collections.  You can believe Virginia will, and is, doing the same thing.  Sometime ago Virginia contracted with a collection agency […]

Read the full article →

Offshore Accounts IRS and Tax Evasion

October 10, 2008

How much money do you have in your offshore bank account?  That’s right.  Some people attempt to hide money and other assets in foreign countries–out of the US and, supposedly, hidden from the IRS. Many private investigators and attorneys search for hidden, offshore accounts.  Sometimes the money or other assets are hidden from a spouse in […]

Read the full article →

Welcome To Lowrance Law

October 6, 2008

Lowrance Law LLC is a private law firm in McLean, VA, specializing in tax problems.  I represent people having tax problems with the IRS.  I focus on tax controversy matters (civil and criminal tax matters), and tax disputes for small businesses, individuals and other attorneys.  Today is the first posting to the Lowrance Law Firm’s Blog.  […]

Read the full article →