Business Accuracy Related Penalty Frequently asked questions
We now have an FAQ list that we hope will help you answer some of the more common questions regarding Business Accuracy Related Penalty.
1. What is the Business Accuracy Related Penalty
If you have unreported, or underreported income, then an audit or a notice tells you that you have a new balance and a penalty.
2. Is the penalty correct?
Usually yes, unless you have grounds to contest it.
3. What do you do?
- We contact the IRS.
- We request your record.
- We calculate your balance due.
- We check for unfiled taxes.
- We review all the data in your file.
- We will recommend which option is best.
- We will prepare the appropriate forms with the information you provide.
- We handle the contact with the IRS.
4. How much is it?
You’re looking at around 20%-40% of the underpayment, misstatement, etc.
5. What did I do?
One, or more of the following.
- Income substantially understated.
- Substantial under valuation
- Substantial over valuation.
- Other misstatement.
6. What information do I need to gather?
Tell us exactly what happened that tax year, or years, and gather all the documents related to the tax year(s).
We handle the rest.
7. How long does it take?
Depending on your file, information gathered, compliance, and resolution chosen.
It can take months. If we appeal, then add six additional months.
8. Will interest and penalties continue?
Yes.