Norman D. McKellar

THE McKELLAR LAW FIRM, PLLC

 

603 Main Street, Suite 405

Knoxville, TN 37902

 

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1-877-4-TAX-SOS

877-482-9767

Nationwide Representation
If you are contacted by an IRS Criminal Division Agent, you should immediately contact an attorney prior to making contact with the Agent. By speaking with the Agent, you may jeopardize your chances of success, and ultimately you may prove to be your own worst witness.
 Failure to follow information reporting requirements

 

  • Some business owners don't file their information returns properly. The IRS will penalize an owner who doesn't file information returns by the due date. Reporting incorrect information or omitting required information can also result in a penalty.

 

  • Failure to furnish correct payee statements. Under current IRS law, any business owner who withholds Federal income or Social Security taxes from their employees' wages must furnish a Form W-2 to each employee. The form states the names of the employer and employee; the amount of wages subject to income tax withholding and the amount withheld; the amount of FICA wages and FICA tax withheld; and the amount, if any, of advance payment of the earned income credit. Generally, business owners should furnish W-2 Forms for a calendar year no later than Jan. 31 of the following year.

 

  • If a business owner doesn't furnish a required statement to a payee by the required date, the IRS can penalize him. The IRS may also penalize businesses for furnishing forms that omit required information or report incorrect information.

 

Don't panic
What if a business owner knows he has made a tax mistake likely to result in a penalty? First, don't despair. The good news is that there are exceptions to these penalties. In fact, the IRS may waive them if the business owner can prove the mistakes resulted from a reasonable cause instead of willful neglect.

 

On a small number of information returns, correcting the errors by Aug. 1 of the year the returns are due will eliminate penalties for failing to include all the required information or for including incorrect information. What does the IRS consider small? The number of returns can't exceed the greater of 10 forms or .5 percent of the total number of returns the business owner is required to file for the year.

 

Consulting with a qualified tax attorney can be essential in protecting your rights, assets and freedom. Contact The McKellar Law Firm PLLC today for more information regarding your tax related problems.

The McKellar Law Firm, PLLC

603 Main Street Suite 405

Knoxville TN  37902