In a recent article titled “How to Stay Out of Tax Hell” on the CBS Interactive Business Network BNET, tax relief expert Michael Rozbruch shared important tax help advice for business owners, including how failure to pay payroll taxes and inadequate bookkeeping could land businesses in IRS trouble.
“Never do a tax return by hand,” said Rozbruch, founder and CEO of Tax Resolution Services, Co., an Inc. 5000 company. “Such tax returns are likely to be illegible and contain mathematical or transposition errors and will likely trigger an audit.”
Rozbruch adds that another common mistake he sees amongst his clients is poor accounting practices. Businesses owners should not attempt to do their own books manually or through accounting software like QuickBooks unless they’re qualified. This is where entrepreneurs who are great at selling products or services often fail in the back office. “If you don’t have a bookkeeping background, you don’t know what you’re doing with QuickBooks,”
Rozbruch cites a case in which his client ran an HVAC company and had his wife to do the bookkeeping.
“She wasn’t trained and didn’t know how to do basic things like double-entry accounting,”
She also had difficulties paying payroll taxes on time. Her inadequate bookkeeping practices cost the company big-time: Rozbruch said the IRS assessed them $175,000 in taxes, penalties, and interest. In the end, his firm was able to remove $50,000 of penalties and put them on a properly structured IRS installment plan for the balance.
Tax Resolution Services, Co., is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. Our tax attorneys, CPAs, and tax relief professionals have successfully resolved thousands of cases since 1998 and are committed to making sure our clients’ experiences exceed their expectations. For more information or to receive a FREE tax relief consultation, visit www.TaxResolution.com or call 888-851-5894
Tax Resolution Services, Co.
Encino Business Park IV
6345 Balboa Blvd, Suite 285
Encino, Ca. 91316
(818) 774-1813 ext.326
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