Articles Tagged with tax penalties

Have a Bankruptcy Judge Review Your Tax Fraud Penalty



How to Resolve a Payroll Tax Dispute
Payroll tax disputes often arise when a worker is paid as an independent contractor, but the IRS or California Employment Development Department (EDD) believes that the worker is an employee. There are some differences between federal and state requirements, but a business will often have to deal with both the IRS and EDD when a worker misclassification problem arises.

The 20-Factor Test

Many employers believe that as long as they have a contract stating that a worker is an independent contractor, they are covered. This is not true. A worker is legally classified as an employee or independent contractor based on the circumstances of the employment relationship.

What Are the Penalties for Failure to File a Tax Return?
If you owe tax and fail to file a return on time, the IRS can assess both civil and criminal tax penalties. The penalty for failure to file is separate from the penalty for failure to pay taxes, and both civil and criminal penalties can be assessed for the same return.

Penalty for File to File a Tax Return

The penalty for failure to file is 5 percent of the tax owed per month. Contrast that with the failure to pay penalty of only half a percent per month, and you can see why it is a good idea to file your return on time, even if you cannot pay your tax.

What Is an Abusive Tax Shelter


Analyzing an Abusive Tax Shelter

Do I Qualify for First Time Tax Penalty Abatement?
Many taxpayers are unaware that they may be eligible for relief from tax penalties under the IRS First Time Penalty Abatement policy. The penalty abatement is available for penalties due to a failure to file, failure to pay taxes, or a failure to deposit taxes.

Requirements for First Time Penalty Abatement

To qualify for First Time Penalty Abatement, you must meet the following requirements:

What to Do If You Are Accused of Tax Fraud


What to Do If You Are Accused of Tax Fraud

What Are the Potential Penalties for IRS Tax Fraud


The IRS Must Prove You Intended to Commit Tax Fraud