Sunday, March 11, 2012

Can I Get Tax Penalties Abated?

The federal income tax code is extraordinarily complex.  It can be extremely difficult for a small business owner to comply timely with all of the rules and regulations in the best of situations.  If for any reason you fail to file, pay or deposit income or payroll tax as required, you are subject to tax, interest and penalties.  

It is unlikely the IRS will abate interest charges.  But if you meet certain requirements, it is possible to get most or all of the penalties abated.   The IRS will generally abate penalties for failure to file, pay or deposit if the failure was due to “reasonable cause.”

Reasonable cause can be any set of circumstances that prevent you from being able to file, pay or deposit taxes on time.  Some common examples that the IRS has accepted as reasonable cause for abatement of penalties are: death or serious illness of you, a family member or someone very close to you; unavoidable absence (in hospital, rehabilitation, or prison);  destruction of your office and records (fire, flood or other casualty); civil disturbances; incorrect advice from a tax professional; incorrect advice received  from the IRS; or other events beyond your control.  More about this in a future blog.

If you are being assessed tax, interest and penalties for failure to timely file, pay or deposit, you may be eligible for abatement of penalties.  Give me a call if you want to discuss reasons for penalty abatement in more detail.  Jsenney@pselaw.com or 937-223-1130.

AND ONE MORE THING.    The Minority Business Enterprise (MBE) / Encouraging Diversity, Growth & Equity (EDGE) Unit has the responsibility for implementing the State of Ohio's minority business set-aside program. This includes certifying minority businesses thereby making them eligible to participate in the state's set aside program, as well as assisting state agencies with the selection of set aside contracts, maintaining a list of certified minority business enterprises, monitoring program compliance, and conducting research & reporting.  If you want more information go to the MBE/EDGE website by clicking MBE / EDGE Certification .  Or give me a calll or email at Jsenney@pselaw.com or 937-223-1130.

PS. Got a topic you want to see discussed in SenneySays?  questions I can help with?  Any business isssue you want to Give me a call or email.  I'll send you a SenneySays headband.  Thanks for reading.
Serving Dayton, Serving You

Pickrel, Schaeffer & Ebeling Co., LPA, 2700 Kettering Tower, Dayton OH 45423


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