On Demand Webinar
Webinar Details $219
- Webinar Length: 100 Minutes
- Guest Speaker: Chuck Borek
- Topic: Taxation and Accounting
- Credit: CPE 2.0, ATATX 1.5
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IRS penalty notices are an issue you cannot ignore, you must address them. Penalties can accumulate with added interest and won’t go away by themselves. The good news is that many penalty issues are easily resolved if you understand the mechanics of the IRS penalty system.
In this course we will address several issues related to IRS penalties, including:
- The variety and nature of penalties that may be imposed by the IRS.
- First time abatement
- Reasonable cause abatement
- Documentation needed to get penalties waived.
- Alternatives for payment
- Introduction
- Types of Penalties 00:05:54
- Failure to File Penalty 00:16:23
- Failure to File Penalty - Minimum and Maximum 00:18:22
- Failure to Pay Penalty 00:19:00
- Adjustments 00:21:11
- Estimated Tax Penalty 00:23:20
- Taxpayers Subject to Penalty 00:27:54
- Payment and Safe Harbor 00:28:54
- Waiver 00:31:58
- Accuracy Related Penalty 00:33:59
- Civil Fraud Penalty 00:39:45
- Frivolous Return Penalty 00:44:32
- Information Return Penalty - Form W-2 00:46:29
- Information Return Penalty 00:50:40
- Information Return Penalty - Penalty Structure 00:51:06
- Failure to Deposit Penalty 00:56:47
- Type of Depositor 01:00:06
- Monthly Depositors 01:01:54
- Semiweekly Depositors 01:02:27
- Penalty Amounts 01:03:06
- Trust Fund Penalty 01:04:06
- Interest 01:09:09
- Abatement of Penalties 01:10:33
- First-Time Abatement - Eligible Penalties 01:12:01
- First-Time Abatement - Good Tax Compliance 01:12:57
- General Abatement: IRM 1.2.1.4.2 01:15:28
- Reasonable Cause - Good Faith 01:17:24
- Reasonable Cause - Other Factors To Consider 01:19:24
- Reasonable Cause Examples 01:22:37
- Reasonable Cause Examples Cont’d 01:22:44
- Tips for Getting Penalties Abated 01:25:53
- Chances for Getting Abatement 01:30:44
- Reasonable Cause 01:33:02
- Reasonable Cause and First-Time Abatement 01:35:55
- No Getting Out of Interest 01:35:02
- Penalties Already Paid? 01:36:01
- Form 843 01:36:19
- Appeals Hearing 01:37:37
- Judicial Resolution 01:38:27
- Finally . . . 01:39:12
- Thank You 01:39:40
- Presentation Closing 01:39:58
- Abatement 00:01:30, 00:03:32, 00:07:27, 00:33:51, 01:10:42, 01:26:17, 01:32:29, 01:34:01
- Accuracy Related Penalty 00:12:29, 00:34:00
- Audit 00:35:31, 00:53:50
- Civil Fraud Penalty 00:13:50, 00:39:45
- Estimated Tax Penalty 00:10:42, 00:23:20, 00:31:05
- Failure to Deposit Penalty 00:14:51
- Failure to File Penalty 00:07:47, 00:16:23
- Failure to Pay Penalty 00:09:25, 00:19:00
- Federal Insurance Contributions Act (FICA) 01:07:07
- Form 1099 00:15:20, 00:47:49
- Form 843 01:36:20
- Form 990 00:55:49
- Form 990-T 00:56:20
- Form W-2 00:15:22, 00:50:13, 00:56:35
- Frivolous Return Penalty 00:15:04, 00:44:33
- Information Return Penalty 00:15:16, 00:46:31
- Liability 00:54:01, 01:05:54
- Limited Liability Company (LLC) 00:26:33
- Reasonable Cause 01:16:02, 01:33:01, 01:36:34
- Safe Harbor 00:28:56
- S Corporation 00:11:27, 00:23:37
- Trust Fund Penalty 00:15:52, 01:04:06
Abatement: A tax abatement is defined as the reduction of, or exemption from, taxes granted by a government for a specified period, usually to encourage certain activities such as investment in capital equipment (which includes buildings). A tax incentive is a form of tax abatement.
Accuracy Related Penalty: An Accuracy-Related Penalty applies if you underpay the tax required to be shown on your return. Underpayment may happen if you don't report all your income or you claim deductions or credits for which you don't qualify.
Audit: A formal examination of an organization's or individual's accounts or financial situation
Civil Fraud Penalty: If the taxpayer's underpayment of his taxes is intentional, he may be subject to the civil fraud penalty.
Estimated Tax Penalty: The Underpayment of Estimated Tax by Individuals Penalty applies to individuals, estates and trusts if you don't pay enough estimated tax on your income or you pay it late. The penalty may apply even if we owe you a refund.
Failure to Deposit Penalty: The penalty you pay is a percentage of the taxes you did not deposit on time, in the right amount, or in the right way. For amounts not properly or timely deposited, the penalty rates are: 2% — deposits made 1 to 5 days late, 5% — deposits made 6 to 15 days late, 10% — deposits made 16 days or more late, but on or before the 10th day after the date of the first notice we sent you asking for the tax you owe.
Failure to File Penalty: The Failure to File Penalty applies if you don't file your tax return by the due date. The penalty you must pay is a percentage of the taxes you didn't pay on time.
Failure to Pay Penalty: The Failure to Pay Penalty applies if you don't pay the tax you report on your tax return by the due date or approved extended due date. The penalty you must pay is a percentage of the taxes you didn't pay.
Form 1099: Form 1099 is one of several IRS tax forms used in the United States to prepare and file an information return to report various types of income other than wages, salaries, and tips (for which Form W-2 is used instead). - Wikipedia (https://en.wikipedia.org/)
Form 843: Form 843 is a multipurpose tax document issued by the Internal Revenue Service (IRS) used by taxpayers to make a claim for a refund of certain assessed taxes or to request abatement of interest or penalties applied in error.
Form 990 : Form 990 (officially, the "Return of Organization Exempt From Income Tax") is a United States Internal Revenue Service form that provides the public with financial information about a nonprofit organization. It is often the only source of such information.
Form 990-T: Exempt organizations use Form 990-T to report unrelated business income. An exempt organization that has $1,000 or more gross income from an unrelated business must file Form 990-T, Exempt Organization Business Income Tax Return. The obligation to file Form 990-T is in addition to the obligation to file the annual information return.
Form W-2: Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. - Wikipedia (https://en.wikipedia.org/)
Frivolous Return Penalty: The taxpayer submits what is purported to be a required return. The purported return does not contain sufficient information to judge the substantial correctness of the self-assessment or contains information that, on its face, indicates that the self-assessment is substantially incorrect. Section 6673(a) allows the Tax Court to impose a penalty of up to $25,000 when it appears that: a taxpayer instituted or maintained a proceeding primarily for delay, a taxpayer's position in such proceeding is frivolous or groundless, or. a taxpayer unreasonably failed to pursue administrative remedies.
Information Return Penalty: An information return penalty may apply if you don't file information returns or provide payee statements timely or accurately.
Limited Liability Company (LLC): An LLC is a corporate structure where members cannot be held accountable for the company’s debts or liabilities. This can shield business owners from losing their entire life savings if, for example, someone were to sue the company. Can be a single member (much like a sole proprietor) or a multi-member. It shares certain traits of both corporations as well as partnerships or sole proprietorships. It is not a corporation.
Reasonable Cause : Reasonable cause is based on all the facts and circumstances in your situation. The IRS will consider any reason which establishes that you used all ordinary business care and prudence to meet your federal tax obligations but were nevertheless unable to do so.
S Corporation: An S corporation, for United States federal income tax, is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any income taxes.
Safe Harbor: A safe harbor is a provision of a statute or a regulation that specifies that certain conduct will be deemed not to violate a given rule. It is usually found in connection with a vaguer, overall standard. Under the safe harbor, a “rental real estate enterprise” is treated as a trade or business for purposes of Sec. 199A if at least 250 hours of services are performed each tax year with respect to the enterprise. ... The safe harbor requires that separate books and records be maintained for the rental real estate enterprise.
Trust Fund Penalty: The term trust fund recovery penalty refers to a tax penalty assessed against the directors or officers of a business entity that failed to pay a required tax on behalf of its employees.
