For both individuals and business owners, tax deadlines can be a cause of concern - especially if/when money is due to the Internal Revenue Service (IRS). For individuals, this typically may only occur once during the calendar year in April but for business owners the due dates vary depending on their specific reporting deadlines for various taxes owed throughout the year (i.e. payroll taxes). IRS payments may be required weekly, monthly, quarterly, or almost any other specific time frame depending on the business in question and their payroll schedule and reporting amounts.
The two most common amounts of money requested from the IRS involve late payments regarding any of the above described situations. These non-made payments are then subject to two of the most common fees associated with the IRS in regards to monies owed. Both penalties, for making a payment late, and interest, the amount added to a baseline payment based on a percentage of the amount, can be added to a previously requested amount which is not paid in full by the assigned due date.
A specified amount based on the violation of a tax situation revolving around both the amount and date a tax is due. Penalties assessed by the IRS typically are a result of a few common factors whether the subject is an individual or business entity.
Failure to either file or pay your taxes by the deadline will result in a penalty of some sort being implemented by the IRS. Also, those who have estimated taxes due based on a prior year’s return may also be subject to a penalty should a similar situation arise and the appropriate amount of estimated taxes have not been paid.
On top of the initial penalty, the IRS may also elect to add interest to the original amount due since it is being submitted late. Interest rates are subject to quarterly adjustments and interest for individuals
will accumulate until paid in full by the appropriate party.
Understanding penalties and interests
associated with your tax situation, whether an individual or business, can serve to benefit you well into the future. Also, an understanding of why the penalties and interest have been levied can help in any attempt to dismiss either of the fines.
If you have received an official IRS notification via mail of penalties and interest owed on a tax, then the accounting experts at Bloch, Rothman, and Associates
will be pleased to assist you in determining your best possible course of action. In certain situations the penalty may be dismissed by the IRS but interest will typically always be a required payment. However, if the individual or business can prove the late payment as a result of the IRS or their representative, then both assessments may be eliminated. Further, they are willing and ready to assist in filing via the method most specific to your individual tax situation. Known for providing expert tax advice and assistance, the professional staff at Bloch, Rothman, and Associates can also help with a variety of accounting, bookkeeping and payroll options on an individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us
for your initial free no obligation consultation.