If you receive a notice from the IRS, know that you are not alone. The IRS sends out millions of notices to taxpayers every year. Many of these notices contain failure to file and/or failure to pay penalties. Oftentimes, the notices are incorrect and require a response from the taxpayer.
I often have clients ask things like, “What if I don’t pay my estimated tax payments,” “Can I make payments to the IRS on my bill,” or “I can’t pay my taxes now, can we extend?” My answer is usually you can do what you want regarding paying the IRS,…
On August 24, 2022, the IRS announced that it will waive and refund late filing (Failure to File) penalties for taxpayers who filed their 2019 and/or 2020 tax returns late. The penalty relief applies to 2019 and 2020 individual, corporate, and partnership returns. Note that the relief does not apply…
The IRS has begun sending CP14 Income Tax Notices to certain taxpayers reporting an income tax balance due plus interest and penalties for tax year 2021. If you receive one, do not panic. Many of these notices have been sent in error. The IRS is not correctly posting tax payments made to…
In prior years we have found the IRS compliance penalties for not filing various tax forms to be nothing more than a slap on the wrist. No longer!! The penalties have now reached the point where they could close a business. The penalties for failing to file 1099’s, W-2s and…
The IRS has over 140 penalty provisions at its disposal, but only use a handful regularly. The United States income tax system has a pay-as-you go structure. Simply stated, if you don’t pay enough federal tax throughout the year as you earn income, either by payroll withholding or quarterly estimated…
