Tax Relief Blog
alties, options to address your IRS tax penalty and more…
The IRS has over 148 different types of penalties. And boy do they love to hand them out. The worst part is that the IRS also charges interest and additional penalties on the original penalty.
So you must try to get them reduced or completely abated to zero. CLICK HERE FOR HELP
After you have decided to make a request to the IRS to “Abate Your Penalties” you must consider where and when to make the request. In my experience your chances are better in dealing with IRS Service Centers. The timing of your request depends on the type of penalty assessed against you. It always makes sense to request penalty abatement before you pay the IRS.
Although, if you’ve already paid the bill, it can’t hurt to ask for a penalty abatement and refund.
These penalties can often be reduced to ZERO if you have “REASONABLE CAUSE.” What makes up REASONABLE CAUSE you ask? Well, in my experience in negotiations with the IRS, anything may qualify as long as its reasonable.
The IRS abate penalties for medical reasons, bad accountants, ignorance of the tax laws, ex-spouses, helping to provide care for a loved one, military call-ups, fires, floods, alcoholism, drug abuse, death, and even relying on IRS advice.
Penalties can be such a high percentage of the total amount owed to the IRS; it usually makes sense to consider requesting the IRS to reduce all penalties to ZERO.
YOU MAY BE PLEASANTLY SURPRISED. YOU HAVE NOTHING TO LOSE AND THE SAVINGS COULD BE HUGE! Tax Hint=> File All IRS Required Tax Returns On Time!
Many people do not realize that the IRS charges you a penalty of up to 25% FOR JUST FILING YOUR TAX RETURN LATE. That’s right, 25% of what you owe. This includes individual tax returns, Payroll tax returns or Corporate tax returns.
What people don’t know is that they can file ANY tax return on time and AVOID THE 25% PENALTY even if you don’t send in the money which is owed on the tax return.
Yes, of course you’ll get some ugly mail from the IRS for not sending in the money owed, but so what, you will have avoided a 25% penalty.
So, in the future no matter what is going on in your life, file all tax returns on time even if you don’t send in the money owed with the return.
Payroll Tax Penalty: Payroll Taxes Not Being paid On Time, Payroll Tax Problem
All check signers on company bank accounts can be held responsible for payroll taxes!
If you are a check signer on the company checking account, it is your responsibility to make sure all Payroll taxes are being paid to the IRS at least monthly.
Sometimes businesses get behind on payroll taxes due to cash flow problems. The penalties and interest assessed by the IRS are excessive for this type of delinquency. This problem becomes worse with IRS penalties and interest, and the total amount owed can grow by 50% to 75% in a short period of time.
If the company is now in cash flow trouble and approaching the DANGER ZONE, it may never be able to pay off the total amount owed. Each check signer may be held personally responsible for the payroll taxes. And I mean each of the check signers listed on the bank signature card. This often includes spouses, secretaries, employees, relatives, office managers or yourself.
The IRS takes a very serious approach to collecting delinquent Payroll taxes and may levy or seize company assets in short order. The best advice I can give to you if you find yourself in this situation is, NOT to meet with the IRS Revenue Officer who calls or comes to the door to collect these taxes. Often, how you answer their first 5-10 questions will determine whether you stay in business and if you or others will become personally responsible for the payroll taxes. One of the most important services I offer my clients is to meet with the IRS myself. This allows my clients to concentrate on running their business and improving cash flow. Click Here To Get FREE IRS Tax Relief Reports. Mike Habib, EA
