ORP, OR LLC
WIN OF THE MONTH Form 941 Liability Problem Solved! CASE SNAPSHOT Client: Contracting Company Type of IRS Issue: Form 941 Liability Tax Year in Question: 2019–2021 IRS Claimed Liability: $299,628.77 Savings: $299,628.77
key. This includes employment agreements, detailed job descriptions, and time sheets. Pay your children through official payroll channels and issue them W-2 forms at the end of the year, just like any other employee. This documentation not only helps in case of an IRS audit but also helps prepare your children for the professional world. Pay Fair and Appropriate Wages Compensation must be reasonable and reflect the market rate for the work performed. Overpaying your kids may raise red flags with the IRS, so it’s important to research typical wages for similar roles in your industry to determine an appropriate pay rate and maintain compliance. Maintain Compliance With Labor Laws Before hiring your children, familiarize yourself with state and federal labor laws regarding child labor to avoid any legal complications. This includes restrictions on working hours and types of permitted work. S AND TAX SAVINGS FOR YOU HE BENEFITS
Hiring your children to work in your business can be a win-win situation. It provides them with valuable work experience and a sense of responsibility while offering significant tax benefits for your
business! The key is to make sure you’re maintaining compliance, being fair, and doing things by the book!
In November 2021, we began working with a contracting company to address their significant tax liability. Over the next three years, we engaged with three Revenue Officers and two Revenue Officer Managers. Despite facing multiple deadlines and having to restart the process each time a new Revenue Officer was assigned, we met every deadline without fail.
INGREDIENTS
• • • • • •
2 cups all-purpose flour 2 tsp baking powder
• • • •
2/3 cup milk
Our diligent efforts paid off when we successfully negotiated a
1/2 cup heavy cream 2 tbsp granulated sugar
1/2 tsp salt
Currently Not Collectible status for the business, ultimately saving
1/2 cup butter, softened 1/2 cup granulated sugar
2 cups sliced fresh strawberries
1 large egg
DIRECTIONS
them the entire IRS- claimed liability of $299,628.77. This
1. Preheat oven to 375 F. Grease an 8-inch round cake pan. 2. In a medium bowl, combine flour, baking powder, and salt. 3. In a large bowl, beat butter and sugar until light and fluffy. Add egg and mix until blended. 4. Gradually add dry ingredients to wet ingredients, alternating with milk, beginning and ending with dry ingredients; mix until blended. 5. Pour batter into prepared pan. Bake for 25–30 minutes or until a toothpick inserted in the center comes out clean. Cool in pan before serving. 6. Whip cream and sugar together until stiff peaks form. 7. Arrange strawberries on top of cake and spread whipped cream over top before serving.
outcome means that the client is not required to
make any monthly payments, securing significant financial
relief for their business! Now they can breathe a huge sigh of relief!
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