Tax Compliance Archives

New York State Tax Penalties for Individuals and Businesses

20 April, 2025 | Tax Compliance Tax Penalties Uncategorized

Understanding New York State Tax Penalties: A Comprehensive Guide If you fall behind on your New York State taxes, file incorrectly, or engage in fraud, the Department of Taxation and Finance (DTF) may add a wide range of penalties to your tax bill. By understanding the penalties you may be charged and learning more about the Department’s expectations for taxpayers, you can stay compliant with all state tax requirements and... CONTINUE READING

How Far Back Can the IRS Go for Unfiled Taxes?

10 November, 2024 | Tax Compliance Tax Relief

Summary The IRS has no limit on how far back it can go to collect unfiled taxes since the filing of a tax return triggers the deadlines on the ability to collect unpaid taxes. The agency can assess taxes for any year that a tax return hasn't been filed through an audit process, and if the taxes aren't paid voluntarily, the IRS can use various collection methods to obtain the money (tax liens and levy's). The consequences of not filing taxes can vary based on how long... CONTINUE READING

Can You Go to Jail for Not Paying Taxes?

13 October, 2024 | Tax Compliance Tax Debt Tax Fraud Tax Penalties

Summary Individuals who intentionally evade taxes can face criminal charges and potentially go to jail. Tax fraud and tax evasion are felonies, with penalties including fines and imprisonment. Nearly two-thirds of people convicted of tax fraud receive prison sentences, averaging 16 months. The IRS Voluntary Disclosure Program allows taxpayers to file back taxes and avoid prosecution if they voluntarily disclose their failure to file and make an honest attempt to pay. Tax authorities... CONTINUE READING

Willful and Non-Willful Failure to File FBAR Penalties

8 April, 2024 | FBAR Tax Audits Tax Compliance

FBAR Penalties: What to Expect If You Don't Report Foreign Bank Accounts Nothing’s quite as alarming as finding out you’re in violation of a law that you didn’t know existed. If you have foreign bank or financial accounts, you may be required to file an FBAR every year. Failing to do so could mean paying tens of thousands of dollars in penalties. However, you do have options. Depending on your circumstances, how far behind you are in your filings, and whether or not you paid a... CONTINUE READING

Decoding IRS & NYS Tax Complexity: A Blueprint for Small Business’ Success

4 February, 2024 | Tax Compliance

Introduction: In the intricate landscape of business operations, small business owners face a daunting challenge – navigating the complexities of IRS and NYS tax obligations. It's not merely a puzzle; it's a dynamic challenge that requires constant attention and strategic navigation. The ever-evolving nuances of tax laws, regulations, and compliance requirements create a landscape where the missteps of noncompliance can have profound financial and legal consequences. I... CONTINUE READING

Navigating ERC Repayment, Correcting Errors, and Understanding Consequences: A Comprehensive Guide

12 January, 2024 | ERC Tax Compliance

The Internal Revenue Service (IRS) has recently introduced signiﬁcant measures aimed at addressing potential issues related to the Employee Retention Credit (ERC), a vital pandemic-relief tax credit. This comprehensive guide explores the IRS's new voluntary repayment option, delves into the consequences associated with incorrect ERC claims, and outlines proactive steps businesses can take to rectify errors and ensure compl... CONTINUE READING

Guide to Navigating IRS Voluntary Disclosure & Form 14457

7 November, 2023 | FBAR Tax Compliance

IRS Criminal Investigation Voluntary Disclosure Practice and Form 14457 If you suspect you may be investigated for a criminal tax matter, the best thing to do may be to come clean with a voluntary disclosure. The IRS's Voluntary Disclosure Practice may be able to help you prevent or reduce criminal prosecution for past actions related to IRS code violations. However, you should never take this step without consulting with an attorney — to get help now, contact us today at the Timo... CONTINUE READING

Recordkeeping for Individual Taxpayers

20 May, 2023 | Tax Compliance

Recordkeeping for Individual Taxpayers Every month I am contacted by a new client who has a tax issue from the 1990's, or early or late 2000's. That makes having a tax records retention policy a very important issue since the tax issue can be very old. You may wonder if it is even possible to have a tax issue going back that far in time. The answer is Yes. I hate to say this since if you did not a tax return, the IRS will not start the statute of limita... CONTINUE READING

What Happens If You Can’t Afford to Pay Taxes?

8 September, 2022 | Tax Compliance

The goal of IRS and state tax agencies is to get the tax money that is owed to them. Toward this end, they offer programs to make it easier for people who can’t afford to pay their taxes in a single lump sum to be able to pay what they owe. If this describes your situation, you may qualify for such a program that will allow you to pay your full tax debt off over time or to pay less than you owe in taxes. Keep in mind, though, that even if you don’t have the money to pay your taxes, you mu... CONTINUE READING

Form 1040X: The Amended Tax Return

6 June, 2013 | Tax Compliance

Form 1040X: The Amended Tax Return Having your tax lawyer revising your Form 1040, U.S. Individual Income Tax Return, is done if information reported on the form is incorrect and changes the tax calculation. Filing an amended return is the correct action to take if your original return is incorrect in the amount of income, filing status, number of dependents, deductions, or credits. Taxpayers should also file an amended return to remove deductions and... CONTINUE READING

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