Business Failure To Pay Penalty

Business Failure To Pay 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 Failure To Pay Penalty.

1. What is the Business Failure To Pay Penalty?

  1. You filed a tax return.
  2. The tax return had an unpaid balance.
  3. The balance was not paid by the due date.
  4. You failed to pay the tax upon notice from the IRS.

2. Is the penalty correct?

Usually yes, unless you have grounds to contest it.

3. What do you do?

  1. We contact the IRS.
  2. We request your record.
  3. We calculate your balance due.
  4. We check for unfiled taxes.
  5. We review all the data in your file.
  6. We will recommend which option is best.
  7. We will prepare the appropriate forms with the information you provide.
  8. We handle the contact with the IRS.

4. How much is it?

  1. .5% of the unpaid tax each month up to 25% of the unpaid tax.
  2. If you have both penalties of failure to file and failure to pay then the total penalty cannot exceed 47.5%.

5. What did I do?

  1. You failed to pay the full tax balance when due.
  2. If the amount is less than $100,000 the IRS sent you a notice giving you 21 days to pay and you did not.
  3. If the amount is more than $100,000 the IRS sent you a notice giving you 10 days to pay and you did not.

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. Up to the legal limitations.

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