When federal tax obligations are not met, whether by accident or intention, hefty fees and/or penalties may occur. The good news is the IRS will take into consideration an array of reasonable causes for failure to file a tax return or late payments. If an individual or a business can establish a reasonable cause, it may be wise to request a penalty abatement from the IRS. The IRS will consider waiving penalties and/or fees for various sound reasons.
Ways to request penalty relief
Before Donald Trump was president, he garnered headlines by promising to return product manufacturing to the United States. He visited North Carolina and singled out a local company, Leviton Manufacturing. The company, a maker of light switches and electrical outlets, had closed factories in the state and was outsourcing its manufacturing overseas. According to The Atlantic, Trump vowed to raise taxes for companies like Leviton.
Taxpayers received a little extra time to file their taxes this year. The usual federal tax deadline is April 15th, however, due to the weekend and Emancipation Day, taxpayers received an extra two days to file this year. Additionally, the IRS website experienced multiple outages hours before the midnight filing deadline. Due to the issue, the IRS is giving taxpayers until midnight, April 18th, to file.
If you needed extra time to gather information and file your 2017 tax return then you may have filed for an extension. The IRS expected more than 13 million extension requests last year, so you are not alone if you did not meet the deadline. You can now avoid the failure-to-file penalty. You have taken the right measures to submit the appropriate forms, but that does not mean you are shielded from other types of penalties.
The Internal Revenue Service (IRS) announced an end to the Offshore Voluntary Disclosure Program (OVDP). The program will end on September 28, 2018, leaving tax payers six months to voluntarily disclose foreign financial assets. Business owners with undisclosed foreign assets should utilize the time to become compliant.
A history of arrears
In the state of Washington, business and occupation (B & O) taxes are a major source of state revenue. No matter what industry your business is in, you may qualify for one or more B & O tax credits and be able to improve your bottom line. Here are a few of the B & O tax credits advantageous to a wide variety of business owners.
Multiple Activities
Taxes originally came about to help raise money to run the U.S., state, and local governments on behalf of its citizens. You practically need a degree in tax law in order to understand the convoluted codes and structures that have arisen to support the system, however.
Taxes aren’t just used to fund the government. They can be used to encourage some behaviors and punish others. They reward loyalty, especially with regard to fundraising and shift the economic performance of financial systems.
Tax filing season is getting closer, but there are still some things taxpayers can do to impact their 2017 tax return. Failing to accurately and comprehensively complete your tax return can result in delays and even penalties.
Even if you currently owe the Internal Revenue Service (IRS) money, it is important to file a tax return. If you do not file your return in time then the IRS will charge you an additional 5 percent failure to file fee every month. Contact an attorney if you are unsure what steps to take when facing unpaid taxes. The IRS states that you should complete this checklist by December 31st to get ready for filing season, no matter your circumstances.
Our tax information gets increasingly more vulnerable in a developing digital age. Partners in the tax industry have made significant strides in improving defenses against identity theft, however, the best line of defense are tax payers themselves.
That is why the Internal Revenue Service, state tax agencies and the tax industry will be hosting National Tax Security Awareness Week for the second year. The event begins Monday, November 27, encouraging businesses and individual taxpayers to take extra measures to protect their tax data before the upcoming filing season.
Being a business owner in Washington state is a lot of work. It can be rewarding, but there it also means doing a million things a day to keep the company successful and out of trouble. You can hire people to help you, but ultimately it’s up to you to make sure the bills are paid and the work gets done.
When it comes to taxes, it’s especially important that you stay on top of everything. Business owners generally must file returns for income taxes, property taxes, payroll taxes, Social Security taxes and more. And when there is a mistake, the IRS or state tax agents will aggressively pursue payment.
The best way for you to keep your business out of legal trouble with the IRS is to carefully figure out how much the company owes in taxes and then pay it. You cannot guarantee that the IRS won’t send you a letter someday, but you can reduce your risk by fully reporting your income and taking only the allowable deductions.
Insight Law
800 5th Ave., Suite 4100, Bank of America Plaza
Seattle,
WA
98104
Phone:
206-922-8078
Fax:
206-641-9661
Seattle Law Office Map
Insight Law
15111 8th Ave. SW, Suite 302
Burien,
WA
98166
Phone:
206-922-8078
Fax:
206-641-9661
Burien Law Office Map
Insight Law
10900 NE 4th St., Ste. 2300
Bellevue,
WA
98004
Phone:
206-922-8078
Fax:
206-641-9661
Bellevue Law Office Map
