The Internal Revenue Service (IRS) expects businesses to meet their payroll tax obligations. But what happens when a business has not made these payments? Who is liable? Could the IRS go after the accountant? The truth is that in some cases the IRS can build a...
IRS Penalties
What happens if the IRS accuses me of tax evasion?
Allegations of tax fraud are a serious matter. Unfortunately, there are times the actual commission of this crime may not be as obvious as we would think. When we envision people committing tax evasion, we likely think of someone who uses ill-gotten funds that are...
UNPAID TAXES MAY CAUSE THE LOSS OF YOUR PASSPORT
The Fixing America’s Surface Transportation (FAST) Act allows the IRS to notify the State Department with the names of those taxpayers certified as owing a seriously delinquent tax debt, which is currently $52,000 or more. Federal law, through the Internal...
REASONABLE GROUNDS FOR TAXPAYERS TO GET RELIEF FROM IRS PENALTIES
If a taxpayer tries to comply with the requirements of the law but was unable to do so because of circumstances beyond his or her control, help may be available if the taxpayer has “Reasonable Cause,” which is a type of penalty relief offered by the IRS. The...
ABOUT IRS PENALTY RELIEF
Any taxpayer may qualify for relief from penalties if they made an effort to comply with the requirements of the law but were unable to meet their tax obligations due to circumstances beyond their control. The Internal Revenue Service (IRS) does not abate...
IRS WAIVES 2018 ESTIMATED TAX PENALTY FOR ALL QUALIFYING TAXPAYERS
The IRS has granted an automatic estimated tax penalty waiver to more than 400,000 eligible taxpayers. This penalty relief is being provided as a response to the widespread tax underpayment caused by changes made under the Tax Cuts and Jobs Act (TCJA). Who Qualifies...
CAN YOU NEGOTIATE TAX PENALTIES?
Tax penalties may be negotiated, reduced, or even totally eliminated in some cases. There are a number of IRS programs that can be used when you have significant tax penalties and want some kind of relief. Reasonable Cause Penalty Relief If you missed a tax filing or...
PENALTIES FOR FAILING TO FILE PAYROLL TAX RETURNS
If you have employees, you may be required to file Form 941, Employer’s Quarterly Federal Tax Return. If you fail to file this return, you could face several tax penalties. Failure to File And Failure to Pay The penalty for a failure to file Form 941 (if required) is...
WHAT HAPPENS IF YOU DON’T PAY PAYROLL TAXES?
When a business runs short on cash, it can be tempting to stop paying payroll taxes so you can use that money to operate the business. This is a bad idea because of the steep penalties you’ll face for failing to remit your payroll tax deposits on time. You’re almost...
Common IRS Civil Tax Penalties
Many IRS tax penalties are assessed automatically if you fail to submit payment or file a tax return on time. These penalties may also continue to accrue each month until you pay your taxes or file your return. The following are some of the most common IRS civil tax...