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Video instructions and help with filling out and completing Can Form 843 Liability

Instructions and Help about Can Form 843 Liability

So if we talk about strategy what do we what do we do if we're faced with it what can we do for the client well first of all on collectability collectability could in itself be a defense so we talked about collectability if your client is unable to pay due to a financial hardship so this is talking about the individual that might be assessed that trust fund recovery penalty the IRS can choose not to apply it it's not required by the way than an individual supply personal financial information as they're being investigated but if they don't have the ability to pay if they're assessed you might want to go ahead and give them a voluntary 433 a form and request that they don't assert it based on their financial condition however keep in mind they still might especially in cases where a business is a repeat offender or they continue to pyramid the tax so if you don't have one of those cases sometimes that can be you know on collectability a defense because they don't want to assign it one of the statistics they found is that a great portion that I remember what that is but a very very large majority of all these trust fund recovery penalty taxes this really the person doesn't have the ability to pay or they don't ever collect it so it is at least a valid defense look at check signing authority during the investigation process the IRS will subpoena the bank for records and check signature cards they can shoot it consider check signers to be in control of company finances so a decision-maker in other words however sometimes a check signer doesn't have control of the finances so my example before like an accounting clerk there are duties are only ministerial and lack control so you use that evidence the check signing authority as a false positive so you say it's delegated as opposed to real control and they lack the decision-making ability of course it's based on the facts but you want to how do you know this you want to request you know Liars is going to request all the bank records yourself review the information and then probably hide proof if you need to do a peel a decision later so look into that look into what the IRS looks into you want to see what they see in almost every case what about 1153 what is that you can actually request this if your revenue officer believes your client had responsibility and was willful so they're wanting to assign this trust fund recovery penalty you can also request hey by the way can you give me an eleven fifty three letter that is a proposed assessment of trust fund recovery penalty it's important here to keep in mind 1153 is only a proposal of potential liability it's not a final determination if you disagree the flitter provides a 60-day right to file an administrative appeal so while that appeals pending liabilities only propose so nothing's gonna be in the IRS as books nothing on that transcript of the client until the investigations final so what are you doing the meantime you're going through this appeal it might be a really good time to designate extra payments towards just the trust fund liability portion of the text while it's pending because you reduced that liability amount you're automatically reducing some of the risk for the client so there's also Lee doesn't or not as a strategy they really can't collect employment tax from a business if it goes under so think about the viability of the business you might have to help a client make a hard decision if it is sustainable no important here so important here this is not a high jail free card and a green light to go and start another new business to Voight axis many accountants get into huge trouble trying to recommend this route to avoid taxes that's outright fraud so don't go down that road but you may have to help them to make that decision is the business sustainable unless this cases must say that we're kind of representing the business owner as well as the business well this is part of our strategy there what about a refund claim what how can we do that if they assess it and they maybe file a protest and they receive adverse decision by the IRS appeals office or maybe don't even get around to filing that on time you can still challenge that liability believe it or not how you pay the amount for one quarter for one employee in full so you have to have one quarter with one employee paid in full and thereafter you file a claim for refund so they gave you that refund that's one thing but more often than not they you know first of all you're gonna when you file that claim you're gonna say you base it on a lack of responsibility or a willfulness if they deny that claim you can then bring suit against the IRS in the federal district court or a court of claims so that refund request gives you a right to file a protest so that's one way you can go about it most important here statute of limitations you've got to know what those are because they mess this up quite often this is three years from April 15th of the year following it so every one of our quarters you know for payroll taxes first quarter second quarter third quarters so forth they had different due dates but all of them together so let's say all of our 2022 no matter what quarter it is they're considered due April 15th of 2022 three years from that date is how long they have to assess a trust on recovered penalty so that's how you determine no matter what your.

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