— This is a technical and educational piece — The IRS consistently assesses different type of penalties. In 2017 the IRS assessed nearly 39 million civil penalties totaling roughly $26.5 billion, the IRS abated 4 million civil penalties totaling $12.6 billion. More than 80% of civil penalties were assessed against…
Penalty abatement is a form of tax debt relief you can avail to significantly reduce the total taxes you owe the IRS. What is Penalty Abatement? If you have a tax debt, the IRS will calculate and add penalties & interest on the amount owed. The penalties include a ‘failure…
The taxpayer may be subject to several different penalties. Failure to File If a taxpayer fails to file on the date the return should have been filed (determined with regard to any extension of time for filing) the taxpayer will be subject to a failure to file penalty unless it…
Are you a business owner or an officer facing a 941 payroll or employment tax problem? Unpaid payroll or employment tax is a serious tax matter, and the IRS holds the business owner, officers and other personnel as responsible person(s) and actively enforce aggressive collection measures to collect on the…
Penalty abatement is a form of tax debt relief you can avail to significantly reduce the total tax you owe to the IRS. What is Penalty Abatement? If you have a tax debt, the IRS will calculate penalties and interest on the amount owed. The penalties include a ‘failure to…
You recently asked what will happen and what you should do in the event that you cannot pay your taxes on time. First and most importantly, don’t let your inability to pay your tax liability in full keep you from filing your tax return properly and on time. It is…
Mike Habib is an IRS licensed Enrolled Agent who focuses his tax practice on helping his clients resolve their tax controversy matters. His tax relief firm is rated “A” by the better business bureau, which is quite rare for this industry as many are rated “F” or already ceased business…
Employment and Payroll Tax Audit & Examination: The IRS announced its plan to audit the first 6,000 employment tax audits and small business will be their audit target. The IRS will start examining 2,000 companies every year over the next 3 years. The IRS will utilize its audit findings to…
Part 2 of 2 • Dishonored Check – A penalty is charged if a taxpayer’s check is returned because of insufficient funds. For checks of $1,250 or more, the penalty is 2% of the check amount. For checks less than $1,250, the penalty is the lesser of $25 or the…
Most tax penalties are substantial, punitive and can dramatically increase the overall tax bill. Penalties are assessed for a many reasons. Some tax penalties are due to a taxpayer’s carelessness or inattention to tax details. Other penalties are incurred due to the overstatement of deductions, the failure to report income,…