Late Information Return Penalties
The IRS expects taxpayers to obey its rules and that means submitting everything by their set deadlines. Most of the time, the penalties assessed for not doing this would be based on the resulting amount of taxes owed.
Late Information Return Penalties
What if the only thing that hasn’t been submitted on time is information that is related to others’ tax returns such as W2 information from employers or 1099 information for contractors’ payments? There is also a penalty for that, however, it is not based on any tax owed. It is based on how late the information is submitted. The maximum penalty for these forms is $50. It is important that you understand that these forms must be electronically filed. While filing on paper is sometimes a preferred method for the person doing the filing, the IRS will consider a paper filing a non-filing and penalties will still be assessed until the recognized filing method (electronic filing) is completed.
If you file partnership returns or S corporation returns late, this may result in a penalty of $195 per month, per partner until the electronic filing is complete.
It can be easy to forget about penalties for late filings of returns or information if there is no tax debt as a result. However, the IRS may assess a penalty for late filings regardless of how much tax is owed, even if no tax is owed. It’s quite important to take the deadlines the IRS provides seriously to avoid unnecessary penalties.
If you do find yourself in a situation where you have missed a deadline to file information returns, get help. There are three popular tax professionals that people most readily turn to: a tax attorney, a CPA and an Enrolled Agent.
Pros and cons for each tax professional:
Tax Attorney: A tax attorney will best serve someone in need of tax resolution if that resolution requires representation in court. The majority of a tax attorney’s education is spent in general law and courtroom procedures with a possible focus in tax law later on. If you have committed fraud or find yourself facing a judge for any other reason, a tax attorney will be your best option.
CPA: CPA stands for Certified Public Accountant. Their focus is usually in different kinds of accounting and bookkeeping. They’re well known for how great they can be with numbers. If you need someone to handle your books or do a special type of accounting for you, a CPA will be your best option.
Enrolled Agent: Enrolled Agents’ focus is on tax code and tax representation. They are the only tax professional that is regulated by the IRS. They are recognized with this elite title only after a comprehensive three-part exam covering tax law and representation has been passed, or they have been employed by the IRS for five years. An Enrolled Agent must exhibit extensive knowledge of current and past tax law in order to maintain this title. An Enrolled Agent is on your side and represents you for the IRS in order to balance the playing field. An Enrolled Agent can speak the language of the IRS and is familiar with their procedures and agendas. This gives the Enrolled Agent’s client confidence in knowing that they will be able to achieve the best possible results that they qualify for.
Who To Call
IRS Tax Relief Now has Enrolled Agents with over 30 years experience ready to represent you. Our experience allows us to quickly identify the fastest and most efficient way to resolve your tax issue, whether you’re filing late information or you have other tax issues.
We provide a free evaluation of your tax issue and express the right path for you to take in order to achieve the most favorable results quickly. This is not a standard “free consultation” in which you will be presented with a sales pitch. This is a real evaluation with free information and a plan of action for you to take with no obligation to hire our firm whatsoever.