Category: Tax

Federal law requires employers to withhold income, Social Security, and Medicare taxes from employee wages. When a company experiences financial distress, payments for these payroll or “trust fund” taxes may be temporarily postponed or deliberately ignored. It is important for any business owner to understand that willful failure to pay employee taxes can bring a costly lawsuit from the IRS. A recent Sixth Circuit Court of Appeals decision along these lines is noteworthy.  Issued in July, 2018, the judge’s decision stresses the importance of ensuring that your company’s taxes remain current and confirms that a […]

When you see just as many ads for tax preparers as car dealers, you know it must be that time again. One of life’s two certainties, taxes are required contributions levied by the government. Income tax is the single biggest revenue source for the U.S. federal government and was first used to fund the Civil War. Today’s system has its basis in 1913’s Sixteenth Amendment to the Constitution. All but seven states also impose an income tax on salaries, interest, royalties, unemployment compensation, dividends, and more. For perspective, Kentucky’s 2014 tax revenue per capita was $2,516, […]

If you have outstanding tax debt and are facing serious financial problems, you may be considering the option to file for bankruptcy. However, if you’re hoping to have some or all of your tax debt discharged, it’s important to understand that contacting Bunch & Brock is probably your best bet because we analyze whether your tax obligations are dischargeable or not. Certain types of tax debts are dischargeable, while others are not. Even with that in mind, there are still a number of conditions and stipulations to be aware of when it comes to discharging […]

The first time a wage earner makes enough money to trigger the income tax filing requirement usually results in a fairly simple return. In contrast, a taxpayer’s final return filed after his or her death is quite complicated. When a taxpayer dies, a legal entity called an estate is automatically created to make sure that all of the decedent’s income is accounted for. A decedent’s surviving spouse or personal representative should promptly notify all payers of income about the death and, in turn, they should stop using the decedent’s social security number. Instead, the estate […]