Business Estimated Tax 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 Estimated Tax Penalty.
1. What is the Business Estimated Tax Penalty?
You had to make estimated tax payments on your account, you did not, and you filed your return with no payment, or incomplete payment.
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?
Current rate interest rate for the underpayment of tax.
5. What did I do?
You failed to make estimated tax payments before the return and the amount was due.
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.