A+ Tax Service

09/01/2026

Educator Classroom Expense Deduction – Did You Know?

Eligible K-12 teachers, instructors, counselors, principals and aides who pay for classroom supplies out of pocket may deduct up to $350 of qualifying expenses per year. Married couples filing jointly who are both eligible educators may deduct up to $350 each, for a combined maximum of $700.

You do not need to itemize deductions to claim this deduction. Be sure to keep receipts and other records for any classroom expenses you plan to deduct.

08/31/2026

A Seattle Restaurant Owner Spent His Employees' Payroll Taxes. Ten Years Later, He Pleaded Guilty.

Between 2014 and 2024, a restaurant in Seattle's Capitol Hill neighborhood employed as many as 87 servers, bartenders, and cooks. Every paycheck showed the usual deductions. Social Security. Medicare. Federal income tax withholding.

The money never made it to the IRS.

Across 36 quarters, the owner kept $1,027,362 that had been withheld from his employees' pay. He also skipped the employer share of Social Security, Medicare, and federal unemployment taxes, another $400,000 on top of that. Total tax loss: $1,446,341. He hadn't filed his own personal returns since 2014.

In July, he pleaded guilty to willfully failing to pay employment taxes. He faces up to five years in prison and has agreed to pay the IRS back in full.

Why the IRS Treats Payroll Taxes Differently

Most owners who fall behind on payroll taxes aren't trying to steal from anybody. Payroll is due Friday. The food distributor won't deliver without payment. The 941 deposit can wait until next month, and next month there's a little more breathing room.

That's how ten years happen.

Here's the problem with that math. The money withheld from an employee's paycheck was never yours. You're holding it for the government, which is why the IRS calls it a trust fund tax. Spending it on rent, inventory, or even payroll itself is treated as a serious violation of federal law, no matter what your bank balance looked like that week.

The IRS knows this, and it collects on trust fund taxes harder than almost anything else on its books.

What Falling Behind Actually Costs

• Penalties and interest that compound quarter after quarter

• The Trust Fund Recovery Penalty, which moves the withheld portion onto you personally — your house, your savings, your other businesses

• Federal tax liens and bank levies

• Criminal investigation when the IRS believes the failure was willful

• Real harm to your employees, who may lose access to Social Security credits and other federal benefits they already paid for

That last one is what prosecutors emphasized in the Seattle case. The restitution goes to the IRS, but the people who got hurt were the staff.

If You're Already Behind

You have more options than you probably think, and most of them shrink over time.

The IRS offers installment agreements and other resolution programs for businesses that come forward. It also distinguishes between an owner who's cooperating and an owner who's been ignoring notices for six quarters. Getting current on your deposits going forward, even before you address the back balance, changes how your case gets handled.

What doesn't work is waiting. Every quarter you stay behind adds penalties, adds exposure, and takes options off the table.

How We Can Help

If your business has fallen behind on payroll tax deposits, or you've received IRS notices about employment taxes, call us before the next quarter closes.

At A+ Tax Service, we work with business owners to figure out where they actually stand, deal with the IRS directly, negotiate a resolution, and protect against personal liability under the Trust Fund Recovery Penalty.

Contact A+ Tax Service today for a confidential consultation. The earlier you call, the more options are still on the table.

08/27/2026

What taxpayers should know about IRS third party authorizations

Taxpayers can give a third party the authority to help with federal tax matters. Depending on the type of authorization, this could be a family member or friend, or a tax professional, attorney or business.

There are different types of third-party authorizations with specific roles assigned. Additionally, taxpayers who want to have a third party represent them must formally grant them permission to do so.

Different types of third-party authorizations:

Power of Attorney – Allows someone to represent a taxpayer when resolving tax matters with the IRS. With this authorization, the representative must be an individual authorized to practice before the IRS and Form 2848, Power of Attorney and Declaration of Representative must be completed. A POA can do several things, such as:

Represent, advocate, negotiate and sign on behalf of the taxpayer
Argue facts and the application of law

Receive tax information for the matters and tax years/periods specified by the taxpayer

Receive copies of IRS notices and communications

Tax Information Authorization – Appoints a person to review or receive a taxpayer's confidential tax information for the type of tax for a specified period using form 8821.

Third Party Designee – Designates a person on the taxpayer's tax form to discuss that specific tax return and tax year with the IRS.
Oral Disclosure – Authorizes the IRS to disclose the taxpayer's tax info to a person the taxpayer brings into a phone call or meeting with the IRS about a specific tax issue.

Revoking a third-party authorization

A taxpayer can choose to revoke any authorization at any time.

Power of Attorney stays in place until the taxpayer revokes the authorization or the representative withdraws it.

Tax Information Authorization stays in effect until it is revoked by the taxpayer or the designee withdraws it.

Third Party Designee generally expires one year from the due date of the tax return, not counting extensions.

Oral disclosure, unless it’s stated otherwise, is automatically revoked once the conversation has ended. If the taxpayer wants additional oral disclosure exceeding the original request, a new authorization will be required.

Send a message to learn more

08/26/2026

The IRS Doesn’t Need to Sue You—Here’s How They Collect Without Court

Many taxpayers assume the IRS works like other creditors—that if things get serious, there will be a lawsuit, a court date, or a judge involved. That assumption is not only wrong, it’s dangerous.

The Internal Revenue Service has extraordinary collection powers that allow it to take money directly from you without ever going to court. Understanding how this works can help you recognize when the risk is real—and why waiting for a lawsuit is often too late.

Why the IRS Doesn’t Need Court Approval

Unlike private creditors, the IRS is granted administrative collection authority under federal law. That means once certain notice requirements are met, the IRS can enforce collection actions on its own.

There is no judge, no lawsuit, and no courtroom warning shot. By the time taxpayers realize enforcement has begun, the money is often already gone.

Bank Levies: When Accounts Are Frozen and Drained

One of the IRS’s most powerful tools is a bank levy. When issued, your bank is required to freeze your account—often without advance warning.

After a short holding period, the funds are sent directly to the IRS. This can include checking, savings, and certain investment accounts. For many taxpayers, this is the moment the situation becomes a full-blown financial emergency.

Wage Garnishments: Ongoing, Not One-Time

IRS wage garnishments work differently than most people expect. Instead of taking a percentage, the IRS allows you to keep only a small exempt amount—then takes the rest of your paycheck.

This continues every pay period until the debt is resolved or the garnishment is released. Waiting for a lawsuit means missing the chance to prevent this from starting.

Offsets: Taking Money You Were Expecting

The IRS can also collect by offsetting money owed to you. This commonly includes:

• Federal and state tax refunds
• Certain government payments

Many taxpayers are surprised when expected refunds disappear without explanation. By the time they ask why, the funds are already applied to the tax debt.

Asset Seizures and Other Enforcement Tools

In more serious cases, the IRS can seize assets such as vehicles, business equipment, or other property. While less common, these actions are fully legal and don’t require court involvement.

The longer a case goes unaddressed, the more likely aggressive tools are used.

The Most Dangerous Assumption of All

Waiting for the IRS to “sue” before taking action gives the IRS exactly what it needs: time. Silence is interpreted as noncooperation, not inability.

Ironically, many taxpayers who truly can’t afford to pay qualify for protection—but only if they act before enforcement begins.

Final Thought: The IRS Acts First—Courts Come Later (If at All)

If you owe the IRS, enforcement doesn’t start with a lawsuit. It starts with notices—and ends with levies, garnishments, and offsets if nothing is done.

At A+ Tax Service, we help taxpayers stop IRS collection actions, understand their rights, and take control before enforcement causes lasting damage.

If you’re receiving IRS notices or worried about what might happen next, contact A+ Tax Service today for a confidential consultation. Waiting for court could cost you far more than you expect.

08/25/2026

Do you have your IRS individual account setup? There is so much you can do within this account! And you know that you are communicating directly with the IRS!

08/24/2026

Major Higher Education Tax Credits Now Require Valid SSN – Did You Know?

The American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) help many Americans pay for higher education. For eligible students pursuing a degree or other recognized credential, the AOTC can cover up to $2,500 in tuition, required school fees and certain course materials per year. Meanwhile, the LLC can offset up to $2,000 per tax return for qualified education expenses for eligible students taking higher education courses for a variety of reasons.

Beginning with tax year 2026, the taxpayer claiming either the AOTC or LLC (and spouse, if filing jointly) must have a Social Security number (SSN) valid for work in the United States that was issued before the due date of the tax return, including extensions. If the eligible student is not the person claiming the credit (for example, if the student is that person's dependent or spouse), then the student must also have a valid SSN issued by that deadline. Other qualification requirements, such as income limits, remain in effect. A tax professional can help you determine whether the higher education expenses you pay for yourself, your spouse or a dependent qualify for a tax benefit.

08/18/2026

Seasonal Employers - Did You Know?

Summer is a peak time for many businesses to hire seasonal employees. In general, the same federal tax rules apply to these workers as to permanent staff. Employers typically must withhold federal income tax and F**A (Social Security and Medicare) taxes and pay the employer share of F**A. Employers subject to FUTA must also pay federal unemployment tax on taxable wages.

Seasonal employers often must file Form 941 (Employer's Quarterly Federal Tax Return) for quarters in which they pay wages. However, they generally do not need to file for quarters in which they paid no wages and have no employment tax liability. If this applies, check the "Seasonal Employer" box on every Form 941 you file.

Employment taxes generally must be deposited monthly or semiweekly, based on the applicable lookback period. FUTA follows separate deposit rules and generally must be deposited when accumulated FUTA tax exceeds $500 for a quarter. Federal tax deposits must be made electronically, including through EFTPS.

08/11/2026

Expense Deduction Rules for Personal Property Used for Business – Did You Know?

Many self-employed people may qualify to reduce their taxable income by deducting business expenses. In general, you must allocate expenses related to mixed-use property based on your "percentage of business use." But how is this percentage calculated?

For many types of equipment, your business use percentage may be based on a reasonable measure such as time or output. For example, if you use your computer for 30 hours a week in your freelance work and 20 hours a week for personal purposes (total of 50 hours), then your business use percentage would generally be 30/50 = 60%. Meanwhile, if you have a printer and print 400 pages for business reasons and 100 pages for personal reasons (500 pages total), then your business use percentage would typically be 400/500 = 80%. Therefore, you could generally allocate 80% of shared costs like ink and paper to business use.

On the other hand, business percentages for vehicles should be based on mileage, not time. So if you drive your car 4,500 miles this year in the course of your self-employment work, and 10,500 miles for all other purposes (total of 15,000 miles), then your business use percentage would be 4,500/15,000 = 30%. Alternatively, if eligible, you may choose to use the standard mileage rate and calculate your vehicle deduction based on your qualifying business miles instead of deducting your share of actual vehicle expenses. Be sure to keep records that support your business use percentage, such as mileage logs, usage records, or other documentation showing how the property was used for business and personal purposes.

08/11/2026

Someone Else Prepared It. You Still Signed It.

In July, a Miami man pleaded guilty to filing a false tax return. He'd filed returns for himself and for several trusts he controlled, reporting income the trusts never earned and tax withholding that was never paid. Together, those returns asked the IRS for more than $4.2 million in refunds.

He's scheduled to be sentenced in October and faces up to three years in prison.

Cases like this almost always start with a pitch.

The Pitch

Someone tells you there's a way to get back a lot more than you expected. Maybe it's a preparer who says he knows something the others don't. Maybe it's a seminar, a Facebook group, or a video about a trust structure, a special filing, or a provision that lets you recover taxes you supposedly overpaid years ago. There's usually a line in there about how this is what wealthy people do and nobody tells the rest of us.

The return gets filed. You sign it. And for a while, nothing happens.

Why It Comes Apart

The IRS matches your return against what your employer, your bank, and every other payer already reported. Withholding that was never paid is one of the easiest things in the system to spot. That's why these cases so often end in a courtroom instead of a correction letter.

When it unwinds, the promoter isn't the one holding the bill. You are. That can mean paying the refund back with interest, a civil fraud penalty of up to 75% of the underpayment, a $5,000 penalty for a frivolous return, and, when the IRS believes you knew, a criminal referral.

You signed the return. That signature says the information on it is true, and it belongs to you no matter who typed it.

Signs You Should Slow Down

• A refund amount promised before anyone has looked at your documents
• A fee calculated as a percentage of your refund
• A preparer who won't sign the return or give you their PTIN
• A refund routed anywhere other than your own account
• Any strategy explained as secret, suppressed, or something the IRS doesn't want you to know about
• Being told not to ask questions, or not to keep a copy

If You Already Signed One

You're not the first, and coming forward on your own puts you in a much better position than waiting for the IRS to find it. Amended returns, voluntary disclosure, and penalty relief are all on the table, and which ones apply depends on how much time has passed and what the IRS already knows.

Doing nothing is the one option that gets worse every month.

How We Can Help

If you've received an IRS notice about a refund or an audit, or you're worried about a return someone filed on your behalf, call us before you respond to anything.

At A+ Tax Service, we review prior filings, deal with the IRS on your behalf, correct returns where correcting them is the right move, and work out a plan to get you back in good standing.

Contact A+ Tax Service today for a confidential consultation.

08/03/2026

New IRS Automatic Exemption from Penalty Program

Beginning in summer 2026, the IRS is implementing a new system that will waive certain failure-to-file, failure-to-pay and failure-to-deposit penalties for eligible taxpayers with a strong compliance history. To qualify for the Automatic Exemption from Penalty (AEP) program, a taxpayer generally must have met all filing and payment deadlines for the previous three years, or 12 consecutive quarters for quarterly filers.

Unlike First Time Abate, eligible taxpayers will not need to request AEP relief. The IRS will apply it automatically and send a notice. For eligible returns due on or after January 1, 2027, AEP will replace First Time Abate, although reasonable-cause relief will remain available.

Not all IRS penalties qualify for automatic relief. For example, information-return penalties and accuracy-related penalties generally will not qualify. AEP applies only to eligible penalties, not to the underlying tax or interest due.