Business Taxes: Penalties

Penalties: Contents


Interest and penalties accrue in connection with most tax debt and can end up being an overwhelming burden on you that seems insurmountable.  Penalties for failing to file and pay your payroll taxes are one common reason that small businesses fail and are forced to close.  The IRS can hit you with payroll tax penalties of 33% within 16 days.  That mean you owe 33% MORE to the IRS within two weeks!  And, the IRS tacks on interest ON TOP of the penalties.  It is not uncommon that a payroll tax liability DOUBLES within months.  It is very important that you resolve your payroll tax issues with the IRS QUICKLY or risk getting too deep in IRS debt and having the IRS shut down your business.

Penalty Reduction

Our team of tax professionals understands how to deal with the tax authorities and help prepare your paperwork to reduce, or even eliminate, the penalties and interest in connection with tax debt.  In certain situations, and with proper representation, the IRS may forgive certain penalties imposed for late filing, late payment, or other non-compliance.  Our team evaluates your situation to determine whether your situation qualifies for certain penalty abatement programs and negotiates on your behalf to qualify you for these programs.

First Time Penalty Abatement

There is also a program for “First Time Penalty Abatement”, in which the IRS will eliminate some or all penalties if your business has paid and filed its taxes on time for the past three years but still owes back taxes.  Our team of tax experts understands what situations will qualify for these programs and can help you to file the necessary paperwork.

Skip to content