A tax penalty is assessed when a taxpayer fails to meet a tax filing deadline or fails to make a tax payment when it is due. The IRS and State Tax Agencies impose such penalties as a method of encouraging taxpayers to meet their tax obligations. Both the Failure to File Penalty and the Failure… Continue reading →
tax penalty
IRS Penalties for Hiding Income Offshore
You may remember Mitt Romney’s refusal to make his complete tax returns public due to his offshore accounts in the Cayman Islands in January. Romney at least reported the income to the IRS, if not the American public. The OC Register reported this week that Lake Forest resident Louis Joseph Vadino is being investigated by… Continue reading →
Penalty Abatements and Penalty Waivers. What are they and how to qualify.
Penalty Adjustments and Penalty Waivers The assessment of penalties and interest are methods designed by the IRS and State Tax Agencies to encourage the timely filing and payment of taxes. These charges are imposed when a taxpayer fails to meet a filing deadline or fails to pay a tax amount when it is due. The… Continue reading →
IRS Debt – How did that happen? Now what do I do?
Incurring an IRS Debt Most people who have IRS debt do not find themselves in that situation due to an unwillingness to pay their fair share of taxes. It is much more common that taxpayers find themselves owing the IRS either due to a mistake on a previously filed income tax return or some unavoidable… Continue reading →
IRS Tax Penalties Increased for Failure to File W-2s and 1099s. Yikes!
When meeting with a new client regarding an outstanding tax debt we generally ask if all required W-2’s and 1099’s and have been filed. It is not uncommon for the client to casually respond that they need file those also. They are often surprised to hear of the substantial penalties that apply for the failure… Continue reading →
Don’t Bounce Your Tax Check!
Taxpayers beware! The penalties for bouncing a check to the U. S Treasury Department have recently been increased. Generally, if the IRS extends an existing tax credit or offers a new one, they will make a corresponding change in the tax code to “pay” for the credit. In this case penalties and fees on bad… Continue reading →
