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McKinney, TX 75072  |  303-881-9762  |  ralphp@lptaxandbookkeepingpros.com  |  www.lptaxandbookkeepingpros.com 1099 vs. W-2 Misclassification Why the label on the tax form does not decide whether a worker is an employee One of the most common payroll mistakes starts with a simple sentence: “We are going to pay this person as a 1099 contractor.” The problem is […]

Understanding Levies Before They Happen If you owe back taxes, one question tends to keep people up at night: can the IRS really reach into my bank account and take my money? The short answer is yes — but the longer answer is far more important, because the IRS is legally required to warn you

A practical guide to one of the most important—and most misunderstood—steps in dividing retirement assets. Why this matters Retirement accounts are often among the largest assets in a divorce. A settlement agreement may say who receives what, but the retirement plan still needs the correct legal and administrative instructions before it can divide certain employer-sponsored

Family law attorneys routinely deal with matters that are emotionally difficult, legally complex, and financially consequential. When a divorce involves a closely held business, self-employed spouse, investment activity, rental properties, or complicated tax history, the financial side of the case can become particularly challenging. The difficulty is not simply determining what a client earns. Attorneys

What employers should know about unpaid payroll taxes, personal exposure, and the steps to take now Falling behind on payroll taxes can happen quickly. A slow-paying customer, an unexpected expense, or a cash-flow crunch can leave an employer choosing which bills get paid first. But payroll taxes are different from most business debts. The amounts

Receiving a letter from the IRS can be stressful. For many taxpayers, the first reaction is to put the envelope aside and hope the problem can be dealt with later. Unfortunately, an IRS collection problem usually does not disappear when a notice is ignored. When a taxpayer owes federal taxes and does not pay the

What to keep, how long to keep it, and whether digital copies are enough THE PRACTICAL RULE: Keep records long enough to support every item reported on a return, plus any records that establish the basis of property you still own. A simple “three-year rule” is not enough for every situation. Why record retention matters

A practical comparison of an LLC and an S corporation tax election IMPORTANT: THIS REPORT DOES NOT CONSTITUTE LEGAL ADVICE. Entity formation, ownership rights, liability protection, governing documents, licensing, and state-law requirements should be reviewed with a qualified business lawyer. Tax considerations are only one part of the decision. Consult both a business attorney and

The basic rule: Federal income tax is a pay-as-you-go system. Tax must generally be paid as income is earned, either through withholding or timely estimated tax payments. Who Usually Needs to Make Estimated Payments Estimated tax commonly applies to self-employed individuals, partners, S corporation shareholders, landlords, investors, retirees, and others who receive income without enough

Good bookkeeping is not just about keeping the tax return organized. It gives an owner a clear view of cash, profit, debt, and the decisions that come next. For many small businesses, bookkeeping problems begin innocently: a few transactions are entered later, a personal purchase slips onto the business card, or the bank balance is