Business IRS Penalties in NYC

Business owners in New York City, New York must be aware of the ramifications in failing to comply with state and local tax laws or filing requirements. These mistakes, whether intentional or unintentional, can be costly for your business. There are a number of penalties the government can use against your business, and with them a wide variety of enforcement techniques to collect them. We have a proven track record of tax resolution that allows your firm to minimize or even escape from business IRS penalties in NYC.

Corporate Officers Penalty

Owners and officers of New York corporations, as well as members of a partnership or limited liability company may be personally assessed up to 150 percent of assessed but uncollected state taxes. This problem arises when you fail to collect withholding taxes, or when you withhold the tax and don’t pay the state in a timely manner. This assessment applies to all owners, officers, and members regardless of your day-to-day involvement with business activities or payroll obligations.

Failure to Pay Sales Tax Penalty

Failure to pay state sales tax can result in penalties ranging from 10 to 100 percent depending upon whether or not fraud is indicated during the assessment. These penalties apply solely to state sales tax, while counties and cities vary in the handling of their own assessments. If you have any questions concerning potential county or city sales tax penalties, call us and we will assist you in finding the right answer.

Other Common NY State Business Tax Penalties

Failure to file, filing late or delinquent payment penalties are some of the easiest penalties to avoid simply by filing and paying your taxes on time. Your business will be assessed 5 percent of the tax owed, or $5 (whichever is greater) each month you do not file or pay and maxes out at 12 percent. The failure to pay penalty maxes out at 15 percent of the tax due following the Notice of Demand for Payment.

Fraud-related penalties are assessed when the state determines you willfully and fraudulently failed to file or pay your tax return or filed a false return. Depending on the fraudulent act, assessments can range from 100 to 150 percent of taxes owed or up to $150.

Negligence-related penalties result when you fail to pay your full tax bill based on inaccurate information, such as unverifiable deductions or failure to report your total income. These penalties are generally discovered through audit and can add 25 percent of the deficient amount to your tax bill.

The best way to avoid state and local tax penalties and assessments is to file your taxes on time. A payment plan may be implemented if you are unable to pay your taxes at filing. You will almost always end up paying more when you don’t file on time.

True Resolve Can Help You Minimize Business IRS Penalites in NYC

The Enrolled Agents at True Resolve Tax Professionals in NYC, New York have the expertise to work on your behalf to reduce or even eliminate local and NY state IRS penalties and fees. We are adept at negotiating IRS installment agreements and IRS offers in compromise to turn the proverbial ship around and get your business back in business.

Call True Resolve today and let us help. Our business is managing your tax burden so you can focus your energy and talents on the business you know best—your own.