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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.

To watch more of our YouTube Videos, click here!


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

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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. Gary will 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.


If you enjoyed this video, and would like to see more of our tax and accounting content,  subscribe to our YouTube channel!

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.



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Taxes
Audit RatesAccounting Today recently published an article, “Ten Major Trends in IRS Audits,” examining how IRS audit rates have changed over the past several years. This article provides useful information for taxpayers, especially those who own a business.


Audits of Business Entities


Partnerships and S Corporation are less likely to be audited. According to the article, “The IRS continues to struggle to audit S corp and partnership returns. This situation is likely to get worse as the more experienced IRS business auditors continue to retire. Audit rates for S corps and partnerships are both 0.22 percent – or, put another way, one in every 455 passthrough entities were examined in 2018. It is no wonder that the number of S corporations have increased by 38 percent from 2005 to 2018 (3.5 million in 2005 versus 4.85 million in 2018).” This is an important factor to consider when thinking about making an “S election” for your business.

In addition, audit rates have dropped overall in the last decade. “Most taxpayers envision Internal Revenue Service audits as intrusive investigations resulting in criminal sentences. Today, nothing could be farther than the truth. The IRS’s auditing power has been greatly diminished in the past decade. Congress reduced IRS audit resources by 28 percent in the last decade. And audits are down  from 0.9 percent in 2010 to o.5 percent in 2018. In fact, the number of IRS audits in 2018 (991,168) dropped by almost half compared to 2010 (1.735 million).”


Audit Targets


Nevertheless, there are situations where the IRS consistently audits companies or individuals. According to the article, audits are especially popular among the wealthy. “In 2011, one out of every eight taxpayers who earned more than $1 million in income were audited. In 2018, the number dropped to one in every 31 taxpayers. However, those who earn more than $1 million are still among the most popular audit profiles.”



Article References
Accounting Today, “Ten major trends in IRS audits.” By Jim Buttonow. Click here to read the original article.



Founded by Gary Massey, Massey and Company CPA serves the needs of small businesses and business owners from their office in Atlanta, GA.  They handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping and accounting.  Offices are in the Buckhead neighborhood of Atlanta.   The firm welcomes face-to-face visits.

Gary Massey, CPA

Massey and Company CPA

P.O. Box 421396, Atlanta, GA  30342

Massey and Company 

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Taxes

If you are a business owner, you know how important it is to track your expenses. You are probably also aware that keeping track of your money is becoming more and more difficult in our fast-paced digital world. The online receipt capture feature by QuickBooks Online makes this as easy as possible.

When it comes time to filing taxes, you need to be prepared with an organized expense record for your business. This has been a difficult task in the past. However, with QuickBooks’ new online receipt capture feature, this task has changed. Now, keeping a current record of your expenses has never been easier!





“Audit-Proof” Your Business with the Snap of a Picture
QuickBooks Online has always given you the option to sync your bookkeeping records to your bank accounts, credit card accounts, Paypal and Square.  What’s new is that you can now take pictures of your receipts on your smart phone, using the QuickBooks app.  The pictures are attached to your transaction inside QuickBooks and saved forever.  No more paper.  And your books are now audit-proof, in case the IRS ever comes knocking.

And with the ease of the QuickBooks App, you can audit-proof your business from virtually anywhere! 


The Best Part – No Extra Fees!

The best part of this new feature is that it comes with no extra cost for users of QuickBooks Online.

This feature could change the way you run your business, and make your life easier.  Think about what it will be like to eliminate years of paper receipts with the click of a button!  Plus, imagine going to sleep at night without worries of the IRS challenging your expenses in an audit.

We can show you how Receipt Capture works.  Feel free to give us a call at 678-235-5460, or shoot Gary an email at Gary.Massey@MasseyandCompanyCPA.com.  You can also contact us via our website.


Visit our firm’s YouTube Channel!



Founded by Gary Massey, Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits
Gary Massey, CPA
Massey and Company CPA
P.O. Box 421396, Atlanta, GA  30342
Massey and Company

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