Many business owners often fear and consider the IRS one of the worst government entities they have to deal with. Business owners often work very hard to avoid IRS penalties. However, sometime they still occur. Many business owners are very often surprised to see what can causes IRS penalties. Mark Dicus & Company will share a few tips on avoiding or having to deal with an IRS penalty.
First Time Penalty Abatement
When it is your first time having to deal with the IRS, depending on the reason, you may be able to avoid the penalty altogether. If you have received a fine due to failure to file or pay a charge, you may need to get out of paying the fine or remove penalties associated with them. When it is your first time penalty you can send a letter to the IRS explaining it is your first time receiving a penalty and they can give you an abatement. Depending on the nature of your penalty, an abatement can be used. However, this will only happen once and you will need to understand the abatement process.
IRS Reasonable Cause
When you need to avoid an IRS penalty you can provide a “reasonable cause”. When you can provide a reasonable cause there are a few considerations you must know. You can request a certain type of forgiveness as long as you can give a legitimate reason for the IRS penalty. There are a number of oversights that can occur when filing the taxes and you can be forgiven for the penalty as long as you make the tax correction. However, you can avoid the penalty when you provide reasonable cause and be prepared to correct the issue.
IRS Partnership Relief
For most business types, except for S corporations, filing a partner relief can help a business avoid IRS penalties. Not all business will qualify for a partnership relief which is a type of forgiveness provided by the IRS. To know if you can file a partnership relief you will need to check with you CPA or accountant. A professional accounting service can help determine if your business meets the qualifications for partner relief forgiveness.
IRS Problem Resolution
One of the best ways to avoid IRS penalties is making sure that your taxes are filed on time and correctly. To do this you can seek the help of a professional accountant and bookkeeping service. With an accounting service they will double check the accounts and the past year’s books to ensure there are no red flags and that everything gets filed to the IRS correctly. All taxes must be properly accounted for which mean no problems with the IRS. If you find yourself dealing with the IRS and are not sure how to proceed seek for IRS resolution services. Some accounting firms can help develop a plan for paying or resolving your penalties with the IRS.
Tax Preparation, Filing, Resolution & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
Don’t feel like you have to deal with the IRS alone. If you need accounting or IRS resolution services, contact Mark Dicus & Company today.