Check your notice to see if the IRS is correct in assessing penalties! If the IRS has made a mistake in assessing taxes against you, then if you can resolve the incorrect tax assessment, any penalties associated with the incorrect tax will also have to fall away. There are many ways an addition to tax […]
Anyone who has fallen behind on taxes–whether IRS or state—knows how quickly the liability can snowball. With the double whammy of penalties and interest on top of the tax, what started as something manageable can quickly turn into a huge problem. Consequently, it comes as no surprise that savvy tax debtors want to do whatever
One of the most frustrating situations my clients confront is the IRS’s addition of large amounts of tax or Civil Penalties to tax periods that ended a long time ago. There can be several reasons for additions to tax or Civil Penalties, but the most common ones I encounter are reporting and reconciliation deficiencies across
If you are a shareholder in an S Corporation and you also work for that S Corporation, it is critical that that you pay yourself a reasonable wage. Many S Corporation owners take little or no compensation in the form of wages and, instead, disproportionately pay themselves in the form of distributions. This can lead
April 15th is right around the corner, and if you expect to owe 1040 income tax, but don’t have the resources with which to pay it, you are in the same boat as many Americans. First of all, don’t panic. Federal officers are not going to show up at your home on April 16th to
It is possible for some taxpayers to reduce or eliminate their IRS tax penalties by obtaining an abatement of penalties. This article will explore the fundamentals of IRS penalties as well as how to go about getting them removed. Taxpayers with a state tax liability may also qualify for an abatement, depending on the state.