Self Employed Businesses

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10 Red Flags of Section 125 Abuse: Are Section 125 Plans Legal?

Employers can use Section 125 plans (aka: “cafeteria plans”) to provide pre-tax employment benefits to their employees. As these plans have risen in popularity, there’s...

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How IRS Payroll Audits Actually Unfold for Abusive Section 125 Plans

Unfortunately, there are a lot of abusive promoters pushing noncompliant Section 125 plans. Sometimes, businesses spot red flags before signing up for a plan. In...

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Who’s Liable When a Section 125 Plan Fails: Employer, Vendor, or CPA?

If the IRS audits your Section 125 plan and determines that it’s not compliant, you are liable. Unfortunately, even if the problem stems from a...

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Can the IRS Retroactively Reclassify Section 125 Deductions as Wages?

Section 125 plans are perfectly legal, as long as they’re set up and administered properly, but if they’re not, they can lead to serious problems,...

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Voluntarily Fixing a Questionable Section 125 Plan Before IRS Contact

Some employers learn that their Section 125 plans are abusing IRS rules after getting contacted by the IRS or following an IRS audit of their...

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July 2026 Deadline to Claim IRS Penalty and Interest Refunds

If the IRS charged you late fees, failure-to-pay penalties, or underpayment interest between January 2020 and July 2023, you might be entitled to get that...

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Section 125 Cafeteria Plans Done Right Without Abusing IRS Rules

Section 125 plans (sometimes referred to as cafeteria plans) offer a great way for employers and employees to reduce their tax liability while also offering...

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What to Expect if You Forget to Report 1099 Income

Updated February 2026 The IRS requires a variety of payers to issue 1099s. You may receive 1099s for interest payments, freelance income, dividends, brokerage transactions,...

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Owing Back Taxes: What You Need to Know Before It’s Too Late

Updated February 2026 Introduction: When the IRS Stops Asking and Starts Taking You’re not alone if you’ve received a letter from the IRS. For many,...

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IRS Failure to Deposit Penalty: Avoid and Resolve Payroll Issues

Updated February 2026 If you’re a business owner or executive, timely payroll tax deposits are a key part of federal tax compliance. This involves submitting...

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