Here is an example of how the IRS is collecting tax in the form of penalties
Pass through entities are businesses that do not pay tax, the returns are reported to the owners.
These returns are generally due a month before the individual tax return is due.
Many partnerships are not aware of the timing differences, and The IRS had recently begun fining late penalties of $195.00 per month per partner.
This particular business return was due March 15, the return was filed April 17, the fine was $1,560.00
There is a rule to abate these penalties, but only if certain conditions are met.
By Doug Zandstra CPA
29 Pearl St NW, Ste 225
Grand Rapids, MI 49503
616 970 3000