Tuesday, January 01 2019
Every new year is also the beginning of a new tax season. It is time to assess last year’s personal and business income before it is too late. Albert Einstein, physicist, is quoted as saying, “The hardest thing in the world to understand isthe income tax.”
Failure to File and Failure to Pay
The two common IRS penalties are failure to file and failure to pay. Not only are you assessed penalties, but you are also assessed interest which continues to accrue. What usually starts off as a small dollar amount can blossom exponentially if not addressed properly and promptly. We are here to help.
The individual or small business brings in a nice, steady income for several years. One year the income drops, but the expenses remain the same. Tax day comes and there is just no money allocated to pay taxes. With no money to pay the income tax debt, the panicked taxpayer decides not to file an income tax return at all. The panicked taxpayer expects the IRS to come knocking immediately. One year, two years, three years go by and the IRS still has not come knocking. However, one day, the dreaded IRS letter comes. The taxpayer is shocked to learn that the small amount of taxes originally owed has now skyrocketed. The taxpayer calls the IRS and ends up with nothing more than frustration.
Who to Call
Call us. We are here to help. As tax professionals, we deal with the IRS every day.