How Looming Recession May Affect Tax Collections

The Fed is raising rates. Prices for food and fuel are skyrocketing. Signs are pointing to a recession on the horizon. And as we near the end of 2022, tax time—that time of year everyone looks forward to (sarcasm)—is also on the horizon.

As a business leader, it's important to be proactive and recognize your limitations. Don’t try to fool the IRS and cut corners because it never turns out well.. Scott Curley, o-CEO of FinishLine Tax Solutions outlines how a recession would impact taxpayers and how the IRS will be responding to them.

Why Small Businesses Fall Victim to the Payroll Tax Trap

tax debt relief services

It’s tough running a small business, and Covid-19 has only made it harder. After losing customers and struggling to survive, it’s understandable that some would be looking anywhere and everywhere for a little extra cash.

Business owners who fail to remit payroll taxes to the IRS on time and in full are vulnerable to harsh penalties. Scott Curley, o-CEO of FinishLine Tax Solutions looks at the dangers of borrowing from payroll funds and how small businesses can avoid the trap.

Should we file taxes jointly or separately? A guide for couples who said ‘I do’ in 2022

In order to file a joint tax return in 2023, you have to have been legally married by Dec. 31, 2022. So as long as you got your marriage license in 2022, you're considered married in the eyes of the IRS.

But if you got divorced or legally separated from your spouse at any point during 2022, you're considered unmarried for the entirety of the year and cannot file a joint return.

"The system does not distinguish between parties if they file jointly," says Curley of FinishLine. But if you file separately you won't be liable for your spouse's tax burden. 

Curley says "dozens" of his clients over the years ran into this issue because one spouse wasn't transparent with the other about how much money they owe the IRS.

He recommends bringing this up with your partner before you tie the knot.

The IRS Waives $1.2 Billion in Late Fees. How You Can Take Advantage

Tax Resolution

If you haven’t filed your federal tax returns yet, or filed them later than you should have during the pandemic, you’re in luck. The IRS is issuing a refund for any late fees you paid. It’s also automatically waiving late-filing penalties currently. The agency says this amounts to about $1.2 billion dollars.

One way taxpayers can take advantage of this waiver is to apply credits for the waived fees to outstanding tax balances. Most people who haven’t filed also typically owe back taxes. The two often go hand in hand. The fee waiver gives a unique opportunity to taxpayers to apply this money towards those back taxes, with an eye on preparing to meet all future filing requirements.

Inc5000 Magazine Spotlight on FinishLine Co-Founders

Scott Curley and Brian Gordon, Co-CEOs of FinishLine Tax Solutions, a firm that negotiates tax resolution agreements for clients that have tax problems share their story. Leading with Heart, these leaders approach tax relief by putting customers first. FinishLine is self-funded and focused on impact as opposed to cash. The partners are confident that they have the talented and experienced team in place to achieve continued explosive growth.

Scott Curley Shares the Strategies for Growing Finishline Tax Solutions

Scott Curley is the Co-CEO of FinishLine Tax Solutions, a national tax resolution firm specializing in tax relief and tax preparation services. With more than 20 years of experience, Scott has helped thousands of clients, ranging from individuals to businesses, take control of their tax problems, settle taxpayer debt, while working to prevent the IRS from garnishing wages and seizing assets. Scott launched FinishLine Tax Solutions in 2017 with his lifelong friend and business partner Brian Gordon. FinishLine Tax Solutions was recently ranked by Inc. Magazine on the prestigious Inc. 5000 list of fastest growing companies in the country as well as ranking in the top 100 fastest growing financial service companies in the United States.

Is Personal Loan Interest Tax Deductible?

Tax Resolution

Scott Curley, the CEO and co-founder of FinishLine Tax Solutions, highlights the risk of Mixing business and personal expenses that will also limit your personal protection from business creditors and lawsuits.

"It's important to protect your personal assets and be able to take the tax advantages that come along with owning a business,” Curley says.

Scott Curley's commentary on this news was quoted in this article on Sound Dollar.

How Increased IRS Funding Will Affect Middle-, Low-Income Americans

Scott Curley, the CEO and co-founder of FinishLine Tax Solutions, believes the decision to increase funding for the IRS is at least partially related to rising inflation rates and increased government spending on assistance distributed during the pandemic.

“That created a situation for us,” Curley says. To pay for pandemic-related spending, he says the government had two choices: “Do we want to raise taxes more or do we want to go after the money owed to us already?” With the passage of additional funds for the IRS, Curley believes the government’s answer was the latter.

Scott Curley's commentary on this critical news was quoted thorughout this article on US News

Will IRS Audit More Middle-Class Americans?

A recent analysis by House Republicans estimates that individuals earning an annual income of $75,000 or less would face close to 711,000 additional IRS audits. In addition, Americans earning more than $1 million would receive more than 52,000 audits.

A March 2022 study by the Transactional Records Access Clearinghouse (TRAC) at Syracuse University discovered that low-income households making less than $25,000 are five times as likely to be audited by the IRS as everyone else.

“With this added force, I imagine it will be like the Wild Wild West. Taxpayers and small businesses should expect the IRS to be much more aggressive, by way of audits and other methods, in collecting tax money owed in the coming weeks, months, years,” Scott Curley, the CEO and co-founder of FinishLine Tax Solutions, told The Epoch Times.