In recent years, governments worldwide have been exploring new ways to address tax-related issues. For example, the French government, which reported a budget deficit of approximately 3% of its GDP, has proposed using the surplus tax revenues to exempt minimum wage employees working for small businesses from payroll taxes. This approach contrasts with the United…
Category: IRS Penalties
IRS Penalties
Monetary sanctions imposed by the IRS for various tax-related violations. Give us a call to see how we can help, (713) 909-4906.
Colorado Tax Penalty Only Applies to Compliance Employees
The state tax authorities can be more aggressive than their federal counterparts when assessing and collecting taxes, particularly in collections. It is often advised to pay state taxes while haggling with the IRS about federal taxes. This does not necessarily mean that the state will always prevail, as there are cases where they do not,…
Missing Form 1099 May Establish Reasonable Cause
In general, if you do not receive a Form 1099 to report income to you and you omit it from your tax return, you may still be liable for penalties if the IRS later notices the issue and makes an adjustment. This is because taxpayers have a responsibility to report all their income, regardless of…
Drug Addiction Excuse for Filing Tax Return Late?
Drug addiction is a medical condition. It can be a very serious and life-altering medical condition. This begs the question as to whether drug addiction or migraines be an excuse for filing a tax return late or for abating late filing penalties. The court addresses this in Jordan v. Commissioner, T.C. Memo. 2005-266, for a…
Better than a Soap Opera? Trust Fund Tax Disputes
One of the most important financial responsibilities for any business is the timely payment of taxes, including payroll taxes. Payroll taxes are the taxes that employers withhold from their employees’ paychecks and then submit to the government on their behalf. They also include the employer’s portion of the tax. While some businesses may be tempted…
Tax Liability Review by Tax Court Limited
The collection due process hearing law has provided taxpayers with another avenue for challenging their underlying tax liabilities. With this option, taxpayers can let the IRS assess the additional tax or penalties and then wait for the IRS to attempt enforced collection for the balance. They can then file a collection due process hearing request…