There are over 150 different kinds of civil penalties that the IRS can assess and the IRS uses these penalties to penalize millions of taxpayers each year. The IRS can impose numerous kinds of penalties on businesses, which can include late return filing penalties, late payment penalties, inaccuracy penalties, failure to make federal tax deposit penalties, and failure to timely file information returns such as W-2s and W-3.
Some of these penalties are based upon the amount of the tax that was unpaid or assessed while other penalties have a set amount and are based upon the number of owners or the number of unfiled information returns. While some penalties may be minor, some penalties for businesses can be in the tens of thousands of dollars for one single infraction.
Most penalties can be abated if the taxpayer can show that the problem that led to the penalty was due to reasonable cause. We have over 20 years of experience in filing IRS penalty abatement requests and we can assist you with filing a penalty abatement request with the IRS.