Category: Tax Penalties

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

Penalty Abatement Policies- First Time and Recurring

15 October, 2022 | Tax Penalties Tax Relief

NYS and IRS Penalty Reduction Penalty relief can be successfully sought by negotiating penalty reduction with the IRS, and NYS Department of Taxation and Finance. In order to achieve penalty relief from either agency it may require being able to prove reasonable cause. Penalty reduction is important since the amount of overall tax debt attributable to penalties can be close to 50% of the total tax bill owed before penalties are added in. If this is your first time with a tax pen... 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

Can You Go to Jail for Not Paying Taxes?

4 May, 2022 | Tax Compliance Tax Debt Tax Fraud Tax Penalties

The short answer to the question of whether you can go to jail for not paying taxes is “yes.” Whether a person would actually go to jail for not paying their taxes depends upon all the details of their individual tax circumstances. Sometimes people make errors on their tax returns or are negligent in filing, but they are not intentionally trying to avoid paying taxes. It is a long-standing policy of the Internal Revenue Service (IRS) not to pursue prosecution of individuals who fail to fi... CONTINUE READING