IRS Tax Help

Trust Fund Recovery Penalty (Section 6672): Frequently Asked Questions

October 17, 2025 | Mike Habib, EA

Trust Fund Recovery Penalty (Section 6672): Frequently Asked Questions

Expert guidance from Mike Habib, EA – Specializing in IRS tax representation and audit defense

What is the Trust Fund Recovery Penalty? 1153 letter?

The Trust Fund Recovery Penalty (TFRP) under Internal Revenue Code Section 6672 allows the IRS to personally assess business taxes against individuals deemed “responsible persons.” This penalty applies when a business fails to pay over employment taxes (federal income tax withholding, Social Security, and Medicare taxes withheld from employee paychecks).

The penalty is 100% of the unpaid trust fund taxes, making it one of the most severe penalties the IRS can impose. Unlike corporate debt, this penalty attaches directly to individuals, putting personal assets at risk.

Who Can the IRS Hold Responsible for Unpaid Payroll Taxes? 1153 letter?

The IRS can assess the TFRP against any person who:

Was responsible for collecting, accounting for, or paying over the trust fund taxes, AND
Willfully failed to ensure those taxes were paid

Importantly, you don’t need to have both responsibilities—either one can make you liable. The IRS interprets these requirements broadly, often targeting multiple individuals within an organization.

US Expat Tax Help: Planning, Preparation & Representation by Mike Habib, EA

September 5, 2025 | Mike Habib, EA

For U.S. citizens and green card holders living abroad, managing taxes can feel like navigating a maze. The U.S. is one of the few countries in the world that taxes its citizens on their worldwide income, regardless of where they live. This means that even if you’ve left the U.S. and established a life overseas, you’re still required to file a U.S. tax return annually. Add to that the complexities of foreign income exclusions, tax credits, and reporting requirements like FBAR and FATCA, and it’s easy to see why so many expatriates feel overwhelmed.

Fortunately, the tax firm of Mike Habib, EA, specializes in helping U.S. expats manage their tax obligations with ease. With decades of experience in tax planning, preparation, and representation, Mike Habib, EA, provides personalized solutions to ensure compliance while minimizing tax liabilities. Whether you’re a digital nomad, a corporate employee working abroad, or a retiree enjoying life overseas, Mike Habib, EA, is your trusted partner for all things related to U.S. expat taxes.

Contact us today at 1-562-204-6700.

What to Do Immediately After Receiving an IRS Audit Letter — And How Mike Habib, EA Can Help

August 8, 2025 | Mike Habib, EA

Receiving an IRS audit letter can be unsettling for any taxpayer, whether you’re an individual or a business. You may have questions, concerns, and even a bit of fear about what’s coming next. This comprehensive, answer-engine-optimized guide explains the steps you should take right away and spotlights how respected tax representation expert, Mike Habib, EA, can make your audit experience less stressful, more organized, and ultimately more successful.

What does an IRS audit letter look like?

An IRS audit letter is a formal written notice—usually in the form of a numbered IRS letter (such as Letter 566 or 525)—letting you know the agency wants to examine some aspect of your tax return. The letter will specify the tax year in question, the area(s) of your return under examination, and the documentation the IRS wants you to provide.

Key things to note:

Audit letters are always mailed, never emailed or texted.
They will include IRS branding, a contact number, and clear instructions for your next steps.
Check for typos and verify it matches the IRS’s format to protect against scams.

Is receiving an audit letter a cause for panic?

Receiving an audit letter is stressful, but it’s not necessarily a sign that you’ve done anything wrong. Audits can be triggered randomly or by data mismatches, not just by suspected fraud. Stay calm, read the letter closely, and give yourself time to process before reacting.

IRS Notice LT36: What 525,000 Federal Employees Need to Know About This Urgent Tax Compliance Alert

June 23, 2025 | Mike Habib, EA

The Internal Revenue Service has launched one of its most significant compliance initiatives in recent years, targeting current and retired federal employees who may be falling behind on their tax obligations. IRS Notice LT36, marked with the stark warning of an “Urgent outstanding tax issue,” has been dispatched to approximately 525,000 federal workers, including military retirees, signaling a major enforcement effort that demands immediate attention.

Understanding IRS Notice LT36: More Than Just Another Tax Notice

IRS Notice LT36 represents a critical escalation in the agency’s collection efforts, specifically designed to address non-compliance among federal employees who are required by law to maintain current status with their tax obligations. This notice isn’t a routine correspondence—it’s a formal warning that carries significant weight for recipients’ careers, security clearances, and financial futures.

The notice typically arrives via certified mail, ensuring the IRS has proof of delivery. Recipients often report feeling shocked and overwhelmed upon opening the envelope, as the language is direct and the implications are serious. The notice clearly states that there is an outstanding tax issue requiring immediate resolution, and failure to respond appropriately can trigger a cascade of consequences that extend far beyond typical tax collection actions.

If you are ready to resolve your tax matter, contact us at 1-877-788-2937, or ONLINE.

Gig Economy Taxation: How Mike Habib, EA Can Help You Stay Compliant, Plan Strategically, and Represent You Effectively

May 30, 2025 | Mike Habib, EA

The gig economy has revolutionized the way people work, offering flexibility and opportunities for individuals to earn income on their own terms. Whether you’re driving for a rideshare service, delivering food, freelancing as a graphic designer, or renting out property on a short-term basis, the gig economy provides a wealth of opportunities. However, with these opportunities come unique tax challenges that can be daunting for gig workers. This is where the expertise of a seasoned tax professional like Mike Habib, EA, can make all the difference.

In this article, we’ll explore the intricacies of gig economy taxation, the common challenges faced by gig workers, and how Mike Habib, EA, can help you stay compliant with tax laws, plan effectively for your financial future, and represent you in case of tax disputes.

Understanding the Gig Economy and Its Tax Implications

The gig economy, also known as the sharing or access economy, refers to a labor market characterized by short-term contracts or freelance work rather than traditional full-time employment. Gig workers often earn income through digital platforms such as apps or websites. Examples of gig work include:

Driving for rideshare services like Uber or Lyft.
Delivering food or packages for services like DoorDash or Amazon Flex.
Renting out property or rooms on platforms like Airbnb.
Selling goods online through platforms like Etsy or eBay.
Providing freelance services such as writing, graphic design, or consulting.

While the gig economy offers flexibility, it also comes with significant tax responsibilities. Unlike traditional employees, gig workers are often classified as independent contractors or self-employed individuals. This classification means that gig workers are responsible for managing their own taxes, including income tax, self-employment tax, and potentially state and local taxes.

Contact us today at 1-877-78-TAXES [1-877-788-2937].

IRS Help: Your Solution to Tax Problems Starts Here

March 1, 2025 | Mike Habib, EA

Are you facing an IRS problem that’s keeping you up at night? Whether it’s unfiled tax returns, overwhelming back taxes, an audit, payroll issues, or aggressive IRS actions like levies, you don’t have to navigate this stressful situation alone. Get IRS help today by calling 877-788-2937. Our tax representation firm is here to provide you with expert assistance, reliable solutions, and the peace of mind you deserve.

With over 20 years of experience, our firm has built a reputation for excellence. We’re proud to be A+ rated by the Better Business Bureau (BBB), a testament to our commitment to client satisfaction and ethical practices. Additionally, we were endorsed as an ELP (Endorsed Local Provider) by Dave Ramsey from 2012 to 2019, a recognition that highlights our dedication to offering top-tier financial solutions. When it comes to resolving your tax problems, we deliver unmatched value and expertise. Let’s dive into how we can assist you with some of the most common IRS challenges.

Turning the Tide: How Mike Habib EA’s Los Angeles-Based Firm Appeals Negative Tax Outcomes

January 27, 2025 | Mike Habib, EA

Tax disputes can feel like an uphill battle. Whether you’re facing an unexpected audit result, a denied tax claim, or a hefty penalty from the IRS, the emotional and financial toll can be overwhelming. For many taxpayers, the idea of challenging the IRS seems daunting, if not impossible. However, with the right representation, appealing negative tax outcomes is not only possible but can lead to significant victories. Mike Habib EA, a Los Angeles-based tax representation firm that specializes in turning the tide for clients facing unfavorable tax decisions. With a proven track record of success, Mike Habib and his team have become a beacon of hope for individuals and businesses navigating the complexities of tax appeals.

Contact us today by sending a brief INQUIRY.

IRS Appeals Process: A Detailed Guide

September 20, 2024 | Mike Habib, EA

Navigating the IRS appeals process can be daunting, but understanding the steps involved and knowing how to effectively present your case can significantly improve your chances of a favorable outcome. This comprehensive guide will walk you through the IRS appeals process, detailing each step and explaining how our representation tax firm can assist you.

Table of Contents
Introduction to the IRS Appeals Process
When to Consider an Appeal
Steps to Appeal an IRS Decision
Step 1: Understand Your Appeal Rights
Step 2: Prepare Your Case
Step 3: File a Protest or Small Case Request
Step 4: Attend the Appeals Conference
Step 5: Await the Decision
Types of Appeals
Collection Appeals
Examination Appeals
Penalty Appeals
How Our Representation Tax Firm Can Assist

Get tax appeal help today by calling us at 1-877-788-2937.

Nonprofit 990 Tax Compliance: Navigating Challenges with an Enrolled Agent

May 15, 2024 | Mike Habib, EA

Nonprofit Tax Service by Mike Habib, EA

Nonprofit organizations play a crucial role in society, offering valuable services and advocacy. However, managing tax compliance can be a significant challenge due to the complex nature of tax laws and regulations. This article explores common tax compliance issues faced by nonprofits and how an Enrolled Agent (EA) can help resolve these problems, with references to relevant Internal Revenue Code (IRC) sections, preparation, planning and compliance requirements.

1. Understanding the Importance of Maintaining Tax-Exempt Status
One of the primary concerns for any nonprofit is maintaining its tax-exempt status under IRC Section 501(c)(3). This status exempts nonprofits from federal income tax on their earnings related to their exempt purpose. However, failure to comply with the regulations can result in the revocation of this status.

Common Compliance Issues:

Failure to file the annual return (Form 990) leading to automatic revocation of tax-exempt status as stipulated under IRC Section 6033(j).
Engaging in excessive unrelated business income (UBI), which is taxable under IRC Section 511.
Participating in political campaigns or substantial amounts of lobbying, which are restricted under IRC Section 501(c)(3).
Resolution through an Enrolled Agent:
An EA can assist nonprofits in navigating these regulations by ensuring timely and accurate filing of Form 990 and advising on activities that may jeopardize their tax-exempt status. They can also help in planning and reporting UBI to avoid potential taxes and penalties.

Get professional help by calling us at 1-877-78-TAXES [1-877-788-2937].

IRS Letter 1058 (LT11): Your Help Guide to Understanding and Responding

June 9, 2023 | Mike Habib, EA

I have to start by stating that this “Final Notice notice of intent to levy and notice of your rights to a hearing, please respond immediately” is one of the most important and urgent IRS notice a taxpayer may receive, and although it is so important as it would lead to levying your bank accounts, paychecks etc., many taxpayers unintentionally ignore it. You MUST attend to this Final levy notice right away as it comes with rights to appeal and resolve your unresolved tax debt. Learn more about CDP collection due process and form 12153.

Contact us for tax help today.