Sampling of what we can do for you.
Tax Preparation
Bair Tax provides services for Small Businesses & Individuals. Provides consulting for Start-ups & established Businesses. Accounting, Bookkeeping & Financial Statement Preparation; Payroll & IRS Representation. These services are offered on both an ongoing and special needs basis. Please call for additional information on how we can help you with your accounting, financial reporting and payroll needs.
Payroll
As a payroll service I will collect wage and hour information from the employer and use that information to calculate gross wages, subtract all pertinent withholdings and deductions, print checks, make direct deposits via EFTPS (electronic federal tax payment system) and prepare all employment tax filings. We will also mail out W-2 and 1099 forms and resolve any inquiries from the IRS or other government agency.
Employment Taxes and the Trust Fund Recovery Penalty (TFRP)
To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP. These taxes are called trust fund taxes because you actually hold the employee's money in trust until you make a federal tax deposit in that amount. The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business. The business does not have to have stopped operating in order for the TFRP to be assessed.
Who can be responsible for the TFRP
The TFRP may be assessed against any person who:
- Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
- Willfully fails to collect or pay them.
Problem Resolution
Personal or Business:
Levy –
An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.
If you receive an IRS bill titled Final Notice of Intent to Levy and Notice of Your Right to A Hearing, contact us right away.
If you receive an IRS notice of levy against your employee, vendor, customer or other third party, it is important that you comply with the levy.
Lien
A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets.
The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.
Penalties & Interest – Personal or Business
If you fail to pay all the taxes you owe when they are due, you may owe interest and penalties on the shortfall. The amount of interest expense you pay depends on how long you owe the IRS money, and the current IRS interest rate on underpayment of taxes.
How are IRS interest rates determined?
The IRS publishes interest rates on underpayments and
What is the current IRS interest rate?
The IRS interest rate on underpayments and overpayments
Don't forget the penalty
If you pay less than the required amount in estimated taxes, or if you pay taxes late, you may also owe a Failure to Pay Penalty. This penalty may be .5% per month. *For example, if you owe $1,000 in back taxes, you may owe a penalty of $5 for every month your payment is late.
This is in addition to interest. The IRS sometimes forgives or "abates" a penalty if you can show good cause for paying less than the required amount or paying late. You will still owe interest, however.