Tax Penalties on the Rise

There has been a lot of chatter about changes in the tax rules and regulations in the past year. Regardless of personal feelings on the matter we are all in the same boat of compliance trying to keep from going over the proverbial waterfall. For business owners the navigation of these new rules is two-fold. Like the rest of us, they have to be sure that their personal filing is accurate, but they are also faced with ensuring that their business reporting is spot on. With this in mind, I thought that a little information sharing might be in order to inspire a little more diligence in us all as we prepare our taxes this year.

Did you know?

A failure to file accurate information returns now results in a penalty of $100 per return (an increase from $50)

A failure to file can now cost up to $1.5 million (increased from the $250,000 maximum)

For corrected returns filed within 30 days, the fee is now $30 per return (up from $15)

Organizations filing corrections within 30 days may be subject to a maximum of $250,000 (increased from $75,000)

Corrections filed more than 30 days after the due date, but prior to August 1^st is now $60 per return (up from $30 per return)

Organizations issuing corrections more than 30 days past the due date, but prior to August 1^st, can face penalties up to $500,000 (up from $150,000)

Have an organization (small business) with gross receipts of $5 million or less?

A failure to file penalty can result in a maximum fine of $500,000 (increased from $100,000)

Corrections issued within 30 days may be fined a maximum of $75,000 (increased from $25,000)

Corrections issued 30 days or more past the due date, but prior to August 1^st, can be fined a maximum of $200,000 (increased from $50,000)

Interested in a few more details? 

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