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Instruction, Taxes

Currently Not Collectible (CNC) status can be used to halt IRS tax collections!  Check out our video to find out how!

This video covers the basics of Currently not Collectible status.  The IRS stops collection activity on tax debts for anyone deemed to be not collectible.  However, this status does not prevent the imposition of tax liens.

Firstly, to qualify as Currently not Collectible, the taxpayer must present financial statements to the IRS.  The financial statements show available net equity in assets.  Secondly, the financial statements also present gross monthly income.   Then, the taxpayer subtracts allowable expenses from monthly gross income. 

The taxpayer combines net available equity in assets and net monthly income.  The sum is the amount that the taxpayer is deemed to be able to pay the government for back taxes.  If the number is zero or negative, the taxpayer is not collectible.  As a result, IRS collection activities will then cease. 

It is important to note the Currently not Collectible status is temporary.  The IRS will revisit the taxpayer’s financial position every year or two, to determine if the taxpayer is able to resume making payments on his or her tax bill.

Please feel free to call our office in Atlanta, GA at 678-235-5460 if you have any questions. For more information on personalized help, visit our Home Page.

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Founded by Gary Massey, Massey and Company is a boutique CPA firm in Atlanta, Georgia serving the needs of small businesses and their owners.

Featured image: Photo by Brad Huchteman on Unsplash


Instruction, Taxes

Payroll Taxes

This is the first in a series of videos on the topic of payroll taxes. Anyone with a business that has employees should find this series of videos to be useful and important. There will be many actionable items relating to payroll tax matters discussed throughout the series.

Payroll taxes are one of the more common reasons that businesses fail. We discuss why this is the case and, similarly, what business owners may do about it.

In this video, we begin with an overview of the magnitude of the payroll tax issue.

Then, we move on to a discussion of how payroll taxes work, including forms required. We also talk about the differences between FICA tax, Medicare tax and the withholding of employee income taxes, including their calculation.

Trust Fund Taxes

One of the critical areas covered in this video is the importance of Trust Fund taxes. These are the payroll taxes the employer holds in trust for the government. The penalties for the misappropriation of these funds are very high and can be imposed on the company, as well as the owners and certain key employees. This is known as “personal liability.”

Additionally, we go on to discuss the EFTPS system, which mandates the electronic payment of payroll taxes by almost all employers.

Finally, we conclude the video with a summary of three penalties.  These can be imposed on the employer, in addition to the Trust Fund penalties already discussed.

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For more information about the services our firm provides, visit our Home Page

Founded by Gary Massey, Massey and Company is a boutique CPA firm in located in Atlanta, Georgia. We dedicate ourselves to serving the needs of small businesses and their owners.