Tax Controversy Services

Employment Tax issues and the Trust Fund Recover Penalty

Each year, many taxpayers fail to pay taxes on time or do not pay taxes in full. In nearly all cases the IRS uses penalties to punish taxpayers. Once the IRS identifies the delinquency, they will apply penalties and interest to the amount owed. The types of penalties are numerous and some can be as high as 100% of the tax liability. Penalties may be associated with late filing, late payment, accuracy issues, federal tax deposits, or fraud. If you or your company falls into this category a request for penalty abatement can be filled.

If the reason for not filing or paying taxes is deemed acceptable by the IRS it is sometimes possible to have the penalties abated or refunded, if already paid. It is difficult to substantiate your eligibility for penalty abatement without the assistance of a qualified tax professional. The Esquire Group tax team will help determine if your circumstance meets IRS requirements for abatement, e.g. natural disaster, death of family member/partner. We will secure the necessary forms, and state your case along with a commitment or strategy to repay any outstanding debt. In many cases we are able to get the penalties waived when reasonable cause is provided to the IRS.