Tag: IRS
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The Reasonable Compensation Trap: What Happens If Your S-Corp Salary Is Too Low
Electing S-corp status is one of the smartest tax moves a profitable trade business can make. It’s also one of the easiest to get wrong in a way that quietly invites an audit. Here’s the trap: the whole reason S-corp status saves you money is that only your salary is subject to self-employment tax —… Read more
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1099 or Employee? The Classification Mistake That Could Cost You Thousands
You’ve got a guy. He shows up most weeks, does great work, and you pay him at the end of the job. Easy — you hand him a 1099 at tax time and move on. Except the IRS might not see it that way. And if they don’t, “easy” turns into back payroll taxes, penalties,… Read more
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The Beginner’s Guide to Taxes: Understanding the Basics
Taxes can feel like a complicated maze, especially if you’re new to the process. But understanding the fundamentals can make filing your taxes much less intimidating. Whether you’re a beginner to taxes and are preparing to file for the first time or just want a clearer picture of how everything works, this beginner’s guide will… Read more
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What to Do If the IRS Calls You
A Step-by-Step Guide Receiving a call from the IRS (Internal Revenue Service) can be a nerve-wracking experience. Whether it’s about taxes owed, a potential audit, or simply verifying information, the fear of making a mistake looms large. But don’t panic—knowing how to handle such a call is the key to staying calm and in control. In this… Read more