Understanding the applicable statute of limitations in IRS tax matters is crucial. Tax cases have been won or lost on this issue alone. Learn more.
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The IRS Dishonored Check or Other Form of Payment Penalty applies if you don’t have enough money in your bank account to cover the payment you made for the tax you owe. Learn more.
The IRS recently warned employers to be wary of third parties advising them to claim the Employee Retention Credit when they may not qualify. Learn more.
The Internal Revenue Service (IRS) considers information return penalties an important tool to collect, at the least cost, the proper amount of tax revenue. Penalties help the IRS achieve this goal because the threat of a penalty generally enhances voluntary compliance.
The IRS is offering automatic penalty relief for 2019 and 2020 on certain late filing penalties
Taxpayers with foreign income have additional IRS forms they must complete each tax season to avoid penalties.
Under the current law, Required Minimum Distributions (RMDs) are the minimum amounts that an Individual Retirement Account (IRA) owner must withdraw annually starting after the year that he or she reaches age 72. IRA owners are responsible for taking the correct RMD each year from their IRA.
Each year, the IRS assesses thousands of tax penalties for filing tax returns, required forms and making payments late. Taxpayers frequently fail to challenge these penalties and in many cases, the taxpayer didn’t understand that a penalty had been asserted or the IRS mailed the penalty notice to the wrong address.
The IRS has announced several new pass-through entity reporting requirements to be introduced for the 2021 tax year. The new requirements serve to provide greater detail to partners and shareholders of pass-through entities to assist them in preparing their respective tax returns. Most notable of these requirements are the Schedules K-2, K-3 and Section 1061 Worksheet A.
Unresolved IRS tax problems only get worse over time. In addition to penalties and interest accruing, options to dispute the tax issue become fewer. Thus, it is important to respond to any IRS notice prior to the required response date.
