Why Small Businesses Fall Victim to the Payroll Tax Trap

Why Small Businesses Fall Victim to the Payroll Tax Trap

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.