POSTS TAGGED : IRS

IRS Tax Changes and Adjustments for 2025: Expert Insights from William Martensen

William Martensen is a seasoned enrolled agent and founder of Martensen Tax & Financial in San Juan Capistrano, California. With more than 15 years of experience and a client base exceeding 600 individuals and businesses, he delivers comprehensive services that range from tax planning and preparation to IRS audit representation, conflict resolution, and virtual consultations.

William Martensen

photo credit: WilliamMartensen.com

A graduate of the University of Arizona’s Eller College of Business, Mr. Martensen is widely recognized for translating complex tax regulations into clear, actionable strategies that minimize liabilities and manage risk. His commitment to integrity and community service further underscores his credibility as a trusted authority in tax and financial matters.…

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Trust Fund Recovery Penalty: How Small Business Owners Can Protect Their Assets from IRS Action

IRS TFRP business protection

  • Trust Fund Recovery Penalty (TFRP) Risks: Small business owners may be personally responsible for unpaid payroll taxes, risking personal assets like homes and savings. 
  • Common Mistakes: Cash flow issues lead to unpaid payroll taxes, and failing to designate payments properly increases personal liability. 
  • IRS Enforcement: The IRS aggressively pursues responsible individuals, including business owners, officers, and check signers, even in bankruptcy. 
  • Prevention Strategies: Prioritize payroll taxes, correctly allocate payments, verify payroll providers, and seek expert help to avoid severe financial consequences.  

Running a small business comes with financial challenges, but few are as devastating as the IRS’s Trust Fund Recovery Penalty (TFRP).…

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What to Do If You Receive an IRS CP 2000 Notice: A Guide to Disputing Tax Discrepancies

  • The IRS CP 2000 notice alerts taxpayers to discrepancies between reported income and third-party records.
  • Common triggers include unreported stock sales, missed 1099s, or incomplete home sale documentation.
  • Ignoring a CP 2000 notice can lead to costly penalties, interest, and increased tax liability.
  • Responding with proper documentation, like cost basis or eligible deductions, can reduce or eliminate the proposed tax increase.

Businessman receiving IRS CP 2000 notice

The IRS has recently ramped up its issuance of CP 2000 notices, causing concern for many. This wave has left many taxpayers confused and stressed, especially when they receive unexpected letters informing them of discrepancies in their tax returns. Understanding these notices is crucial for avoiding costly penalties and interest, so let’s break down what they are, why they happen, and how to respond effectively.…

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Facing IRS Letter LT11? Key Steps to Avoid Asset Levies

LT11

  • IRS Letter LT11 is a final notice of intent to levy assets due to unpaid taxes.
  • Taxpayers have 30 days to request a Collection Due Process (CDP) hearing to avoid asset seizures.
  • Ignoring an LT11 notice can lead to bank levies, wage garnishments, or property liens.
  • Consulting a tax professional can help navigate IRS processes and protect personal assets.

Receiving a notice from the IRS is stressful for anyone, but things are dire when it’s Letter LT11. This letter, officially titled the “Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” signals that the IRS is preparing to seize your assets due to unpaid taxes.…

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Small Business Payroll Taxes

payroll taxesThere is no escaping the wrath of the IRS when it comes to unpaid taxes. There are several differences between running a small business versus a large corporation, but at the end of the day, payroll taxes are something that all business owners must pay close attention to in order to avoid problems with the IRS.

Owing the IRS is not the same as owing a lender or creditor. In the latter situation, you can often negotiate or work out payment arrangements that will allow you to avoid legal ramifications and get your accounts in order without losing your business. The IRS is not a lender nor creditor and will take aggressive action with collection efforts.…

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