IRS Tax Experts Blog

Business partnerships start with high hopes, shared risks, and often real friendship. Yet reality hits hard. Around 70% of them fail eventually, according to multiple studies and expert analyses tracked over the years. That number stings because it means most owners face the same tough question : fight through the mess or call it quits? The answer changes everything—money, time, even personal health hang in the balance. Some fights pay off. Others drain the tank for nothing. Spotting the difference early saves ailing partnerships from becoming salvageable ones, matters more than most admit.   What Usually Breaks Them in the First Place? Partnerships crack for predictable reasons. Misaligned visions top the list. One partner eyes slow local growth while the other dreams of national scale. Small gaps grow into canyons fast. Uneven effort follows close. When one carries the load—nights, weekends, decisions—the resentment builds quiet but steady. Money fights fuel the fire, too...

  Income tax and sales tax are the first two things that come to your mind when you consider California taxes. However, to business proprietors, investors, and even wealthy, multi-layered holders lurks a more hidden and more influential system underneath: the unitary tax principle and its counterpart, the mandatory apportionment. This complicated structure has the potential to change the tax amount of a company by a very significant margin in a wholly unexpected way. In its essence, the unitary tax principle does not take note of the legal core of corporations. California not only taxes a company based on the income earned by the company, but it also considers the whole unitary business as one. This is to the extent that you have a controlling interest in more than one related business that are functionally-integrated (i. e. they are controlled by one management, operate together, or share resources ). California can include its income on a single report. Find a professional ta...

Deductions of the home office can be useful to taxpayers who use a small section of their home to conduct business activities. However, strict rules are used to state what is eligible by the IRS. Some of the questions that are commonly raised regarding this topic are discussed below. What Does The IRS Mean By A “Home Office”? A home work area is that area in your home that you utilize and where you solely use it during your trade, business, or profession. It does not necessarily need to be a whole room; it can be a portion of a room, but kept apart and utilized only when needed in business. One can take the help of the tax attorney services , and they can solve the matters for the home office. Does The Space Need To Be Used Exclusively For Business? Yes. One of the most serious IRS requirements is exclusive use. When the business uses a shared space that you use yourself, it will not be regarded as qualifying. As an example, one will not pass the exclusivity test by working at ...

  The notice contained in the California Franchise Tax Board can be frightening to any taxpayer. Even after you have endured a federal IRS audit , California can spring a piggyback audit, acting upon the IRS auditor. It simply implies the state sees through your taxes on the basis of the federal audit. Knowing about this process is crucial to Californians who have already faced the IRS, since it can help them anticipate any scrutiny at the state level and handle it in a manner that helps them avoid any complications and penalties. Find the best tax attorney in San Francisco who can help. What is a Piggyback Audit? Piggyback audit. The piggyback audit arises where the California FTB piggybacks off an IRS audit. The two agencies are interconnected by data exchange, and hence any federal revisions, such as deductions that are disallowed, reclassification of income, or added tax, are stressed and transmitted to California. Since state tax liability is generally related to fed...

  No company ever wants to see that envelope stamped with “Employment Development Department” land in their mailbox. Payroll tax audits can feel overwhelming, even if you think you’ve done everything right. But here’s the truth: much of the stress comes from being caught off-guard. Preparing in advance—conducting what’s often called a “self-audit”—can save you sleepless nights, penalties, and a lot of scrambling. So, how do you pre-audit yourself before the EDD does it for you? Let’s break it down. Start with the Basics: Employment Classification This is where a large chunk of audits turn messy. Independent contractor vs. employee—sound familiar? The state is particularly focused on this distinction. Take a hard look at your staff. Are any “independent contractors” actually working with you like full-time employees? Do they follow set hours, use your tools, or take direct supervision? If the answer is yes, that classification might be risky. A smart move is reviewing contr...

  Bookkeeping is an important weapon in the success of any business, and yet a lot of entrepreneurs neglect its importance, especially in relation to taxes. Inadequate recordkeeping may lead to grave financial losses, audits by the IRS, and large fines. This blog delves into the dangers of poor bookkeeping, the need to have clear financial records, and the way that digital tools are responsible for revolutionizing bookkeeping activities. You will also learn what the long-term benefits of a well-kept book are and find out some valuable hints about how to remain organized and make sure that you are up to date with your taxes as your business develops and expands. Look for an experienced professional who can help you with sales tax audit help . The Risk of Inadequate Bookkeeping Related to Taxation Messy bookkeeping is not only confusing, but it can also become the reason for significant legal and financial issues. a.       Unreported or false rec...