Tax Penalties 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

IRS Form 843 Request for Abatement: What It Is and How to Use It

12 November, 2024 | Tax Help Tax Penalties

Summary IRS Form 843, Claim for Refund and Request for Abatement, is used to request a refund of taxes paid in error or an abatement of penalties. Common reasons for using Form 843 include penalty abatement for first-time offenses, erroneous withholding by employers, and IRS mistakes or delays. It's important to review eligibility requirements and provide accurate personal details, tax information, and an explanation of the request. The form should be signed, dated, and sent to the... CONTINUE READING

Penalty Abatement Policies- First Time and Recurring

10 November, 2024 | Tax Penalties Tax Relief

Summary Penalty relief can be negotiated with the IRS and NYS Department of Taxation and Finance for various tax penalties, including failure to file, negligence, fraud, late filing and failure to pay on time. 1) Reasonable cause for the failure to file or pay taxes can be a basis for penalty reduction. 2) First-time penalty abatement is available for taxpayers with no history of tax problems who incur a penalty for the first time. 3) Reasonable cause relief is available for taxpaye... 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

What Happens If You Commit Tax Fraud? Possible Prison and Fines

9 September, 2024 | Tax Fraud Tax Penalties

Summary The punishment for tax fraud depends on the type of fraud committed and the specific law broken. Criminal tax fraud can lead to imprisonment of up to five years and fines of up to $250,000 for individuals and $500,000 for corporations. Civil tax fraud leads to civil penalties of 75% of the under-reported tax. Tax fraud involves willfulness, which includes knowledge, intent, and purpose. Accidental, careless, or negligent mistakes are not considered tax fraud. Real-world exam... CONTINUE READING

Can the IRS Freeze My Bank Account? What You Need to Know

9 September, 2024 | Tax Debt Tax Penalties

Summary The IRS has the authority to freeze funds in a taxpayer's bank account up to the amount of their tax debt. The IRS typically sends multiple notices before levying an account, giving the taxpayer time to address the issue. There are various reasons for the IRS to freeze an account, such as significant tax debt, non-compliance, or fraudulent activity. If an account is frozen, the taxpayer has 21 days to respond before the funds are sent to the IRS. Options to release a freeze... CONTINUE READING

Can the IRS Take My House for Unpaid Taxes?

14 August, 2024 | Tax Help Tax Penalties

Yes, the IRS can legally seize your primary residence for unpaid taxes if you owe over $5,000, but this rarely happens. The IRS only turns to home seizure in cases where it has exhausted other options, and the agency must get approval from a district court judge or go through the state's foreclosure process. Most people who owe back taxes never have to worry about losing their home, just as they don't have to wor... CONTINUE READING

Trust Fund Penalty Guide

15 January, 2023 | Tax Penalties

The Trust Fund Recovery Penalty is the penalty you incur as an employer responsible party, if you withhold income tax, Medicare, and Social Security taxes from your employees’ wages, but don’t send the money to New York State or the IRS. The penalty is basically these unpaid monies imposed against you perso... CONTINUE READING

How to Avoid The IRS Tax Penalties?

7 October, 2022 | Tax Penalties

Internal Revenue Service (IRS) is a government agency that deals with the collection of taxes and regulates tax law in the United States of America. They are responsible for every type of tax operations. They operate under the Department of Treasury which is also a government agency. As a taxpayer of the United States of America, it is your obligation to pay your annual taxes to the IRS by filing your returns on time. We know it is a headache for most taxpayers, but as a true citize... CONTINUE READING

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