Eliminating IRS Penalties

When you file or pay your taxes late or are audited and changes are made to your return the IRS will usually assess a penalty against you. The IRS penalty rates vary from  5 percent of…

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IRS Worker Classification Amnesty

The IRS is apparently so happy with the results of it’s offshore voluntary disclosure program that it has established a similar program in the area of worker classification. Michael Cohn of AccountingToday writes that the…

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Top 10 Most Challenged Tax Issues

National Taxpayer Advocate Nina Olson has issued her annual report on the most frequently litigated tax issues: Internal Revenue Code § 7803(c)(2)(B)(ii)(X) requires the National Taxpayer Advocate to identify the ten tax issues most often litigated…

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Penalty Reduction Relief: How to Apply For It

The IRS assesses penalties against taxpayers for, among other things, the following: late filing of a tax return; late payment of tax; the negigent preparation of a tax return; the substantial underpayment of tax; and civil…

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IRS Substantial Understatement Penalty

§6672 of the Internal Revenue Code imposes a 20% penalty on a taxpayer’s substantial understatement of income tax: (d) Substantial understatement of income tax (1) Substantial understatement (A) In general For purposes of this section,…

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