June 23, 2025 • 45 mins
TaxTalk4u.com IRS Penalties & Abatements, Trucker & Business Tax Relief. Form 843 request for abatement, First Time penalty abatement. IRS Penalties: Failure File on time, Failure to Pay, Accuracy Related Penalty, Failure to deposit. Remove or Reduce penalty, Dispute a Penalty, IRS Tax Relief. Trucking and business penalties for not paying payroll taxes, Trust fund penalties, Civil penalties. How to reduce or remove penalties with the IRS
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Episode Transcript
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Speaker 1 (00:00):
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicit or implies shall be extended to W FOURCY
Radio or it's employees are affiliates. Any questions or comments
should be directed to those show hosts. Thank you for
(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fouler EA, bringis you tax talk for you right here
on W four CY Radio and talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:58):
Barry G. Foul Or.
Speaker 4 (01:02):
A good Monday morning to everybody. Hope everybody is going
to have a great beak. It's a way to get
started here and talking about you know, taxes, taxes, taxes,
in this case. You know, what we're really talking about
today is i RS penalties. That's right. I r S
(01:25):
charges penalties. Hopefully you've never seen them, but for those
people when you're paying your taxes, sometimes you just don't
beat all of your tax obligations and end owing a penalty.
You know, IRIS does charge penalties for various reasons. You know,
things like not filing your tax return on time, not
(01:46):
paying any tax code on time and in the right way.
I mean you imagine that at least you paid it right.
You didn't do it in the right way. You get
a penalty. Prepare and file it returns, provide accurate and
timely filed information. Returns, yes, even returns that just there
(02:08):
to give them information, and you got to file them
and you didn't file it on time. Guess what, smack
penalty right on you. And then the I r S
is going to charge you interest on a penalty if
you don't pay it in full, and some penalties they
continue to charge every month until you pay the full amount.
(02:29):
You know, there are different types of penalties, and you
know there are certain things you need to do if
you get a penalty and to avoid penalties. But how
do you know, well, first off, I R. S Is
going to send you a love letter. We love your money.
We charged your penalty. We're hitting you with interest. Please
(02:50):
pay us. But if you don't open that envelope and
read it, unlikely you're going to. You would know that
the I R S gets you slapped you with penalty.
They slap you when you're down. So that notice or
lettuce letter read it. It'll tell you about the penalty,
the reason for the charge, and what they expect you
(03:14):
to do next. Now you know, I arrest have been
known to be wrong. I mean I've seen them because
you haven't filed an extension where you actually bailed the
extension in instead of having it electronically filed, which the
extension only got you an extension of time to file,
not in time to pay. See when you're filing your
(03:34):
personal tax return, you're ten forty and you file that extension,
it's not an extension of time to pay. They expect
you to estimate how much you have to pay and
to pay it in and as long as it's less
than about nine hundred dollars that you owe in the difference,
you know they're not going to hit you with penalty
as long as you file on time. But if you
don't pay and you're going to owe, guess what, slap
(03:59):
that penalty on you as soon as you file plus
back interest. And it's just one of those things, hey,
we got to deal with. So maybe you filed your
extension and you got proof of it and we can
verify it with the I R S, we can remove
that penalty. Now, there are different types of penalties, and
you know the IRS is going to send you notices
(04:21):
about them if you have those uh incurred information returns.
It applies to taxpayers that don't file or furnish their
required information return or pay the statement correctly by the
due date. Hey, in ninety nine is an information return?
Your W two's Actually, if you don't file the W
(04:42):
two W three with Solid Security Administration, man, you should
see the penalty that they hit you with. Those are
incredible penalties in amongst itself, so you know you have
those things that become major problems. Failure to file This
means you didn't file your tax return by the due
(05:03):
date or extended due date, and they slap you with
that penalty. Fail you're to pay. Okay, you owed money,
you didn't pay it by the due date. You didn't
pay it when you filed the tax return, and guess what,
right there another penalty. Isn't it bad enough that you
owe them money if they're going to turn around and
hit you with the penalty and an interest on top
(05:24):
of that, we get to have fun here. We can
complain about the IRS. You know, if we didn't have
the IRS, how many people would actually file a tax return? Nobody?
There'd be no compliance. So you know, if no IRS,
no collection activity, you wouldn't be scared. You're not going
to file.
Speaker 2 (05:43):
See.
Speaker 4 (05:43):
The IRS also hits you with accuracy related penalties. This
applies when you don't claim all your income or when
you claim deductions or credits for which you don't qualify for.
You know, so if if you left off A ten
ninety nine and NEC left off of W two, the
(06:03):
I r S Is going to send you a notice
saying this isn't accurate. This is the information we got
and therefore it hits you with penalties. What's amazing, and
I've seen it is people who are in business. Maybe
you're running a small business or an uber or ride
share or Airbnb, and you're taking credit card payments. And
(06:26):
you get the ten ninety nine k that's what the
I r S gets it too. And now the i
r S is actually doing checks and balances to those
ten und nine k's, which is basically all your merchant transactions.
And if the money isn't matching up or total, isn't
it greater than that?
Speaker 2 (06:45):
Man?
Speaker 4 (06:46):
Guess what you're going through? A audit maybe a correspondence audit.
It could be alive on it depending on how much
those ten nine k's were. Here's a good one, and
this is what the IRS has been really on, especially
those that filed for the ERC credits Employer Retention Credits.
Erroneous claim for refund or credit credit penalting. This applies
(07:11):
when you submit a claim for refund or credit of
income tax for an excessive amount and reasonable cause it
doesn't apply, meaning you went for this credit, but you
don't really qualify for it, and you have no reasonable
explanation of why you would have applied for this credit.
Now the IRS has a failure to deposit. It applies
(07:33):
when you don't pay employment taxes accurately or on time,
so you know they want you to go to EFTPS
and put the payments through or if you're using a
payroll provider, submit those payments electronically. They really don't want
them sent by check anymore. And you didn't follow the
procedures of what you're required to do, and the I
(07:54):
r S will tell you every year here's how you've
got a deposit. You may be a weekly deposit and
are semi weekly, quarterly, or annual depositor. It just depends
on how much payroll you have. But the IRS is
going to send you that notice in January of how
you've got to make your payroll tax posits. You know,
(08:16):
people think tax preprayers sometimes are get out scott free,
and you know, all we do is prepare returns. But
there are tax preparer penalties which apply to people that
return do returns, but they engage in miskindom. I mean,
you've seen it. You know, people prepare returns and they
throw things in that shouldn't be there. Those guys and
(08:39):
gals have gotten in trouble. We've seen it where people
have got in trouble. But it not only affects a
tax preprayer, but it affects you as well. Using somebody
unscrupulous like that, because they're going to still hold you
responsible for that as well. Hey, if you've paid maybe
some taxes due and you did it by check and
that check got return and it's f insufficient funds or
(09:02):
some other form of payment was applied. When your bank
doesn't honor your check or other forum payment, it smacks
you with penalties. You know, when things are tough, it
just make it worse. It gets tougher if you did
an underpayment of estimated tax for your company. It applies
(09:22):
when you didn't make estimated taxes. You're an eleven twenty,
you're ac corp, and you've got taxes and you've got
to pay the taxes. They can hit you a penalty
if you don't do correct estimated tax payments. That's the
same thing that goes for you as an individual. If
you're required to make estimated tax payments, you need to
(09:43):
make them, and you need to make them on time.
The first one was due April fifteen, second one June fifteen,
The third one's going to be due in September the fifteenth,
and then the next one's January fifteenth. Now if that
falls on the weekend, of course, it's the next business debt.
But if you don't make those estimated tax payments. Guess
what the IRS again, it's you right between the eyes
(10:06):
with another penalty. See, the IRS expects compliance. They expect
you to follow all their rules and regulations, the tax laws,
whether you know or not. And that's why you're here
at tax Talk for you dot com because you need
to know how to save yourself from penalties and interest. Hey,
(10:26):
when we come back, we're going to talk more about
IRS penalties and we'll even get into how to abate
IRS penalties right after this.
Speaker 3 (10:35):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Fowler will be right back
with tax Talk for you. If you owe the I
R S or are going through an IRS audit, don't
go at it alone. Called Taxation Solutions tax Relief at
(10:55):
eight eight eight.
Speaker 2 (10:57):
Nine three zero one zero one six.
Speaker 3 (11:00):
We are your solution for IRS debts, audits, back taxes, garnishments,
leans and levees. Whether you're an individual or business, you
need a solution and a strong aggressive tax resolution. Don't
let the IRS walk all over you. Stop the IRS
now call eight eight eight nine three zero one zero
(11:23):
one six or go to Taxationsolutions dot net now for
a free, no obligation consultation. Let's get back to tax
Stock for You with more tax Talk once again.
Speaker 2 (11:40):
Here's your host, Barry G. Foller.
Speaker 4 (11:45):
Hey, welcome back. And you know penalty if you're a
second or two late, don't worry about it. We don't
charge penalties. So you're at tex Talk for you. One
thing that I would tell you is you probably get
over and follow us at tax Talk for You dot
Com that way and never late. And we don't have
the charge penalties or interest for you guys not to
be in here on time at the show. Just kidding.
(12:08):
We don't charge penalties or interest, but we love having it.
Got questions, please feel free to submit them to us
at tax Do for You dot com, n W four
c Y Radio. You know, the I r S charges interest.
You know, if you own money, the I r S
charges interests. If you own penalties, I r S charges interest.
(12:29):
The I r S needs to collect money from you
and I and everybody else to fund the government. And
the amount of debt that people have out there as
taxpayers is significant. And if everybody would pay it all in,
you know, today I R S would be thankful. You know,
even if you don't have the money, just pay it
(12:50):
in right, Hey, it doesn't work that way, but they're
going to continue charging interest to make your situation worse
than it is today, and it'll be worse tomorrow because
of the and theccumulation of the penalties. You know, if
the I R. S says, it's just really simple, how
do you get rid of penalties? You pay them, send
the payment, or pay your taxes and fold to stop
(13:11):
future penalties and interest from adding up. Hey, that's simple,
and that's why taxation solutions exist, is one. Maybe it's
to debate penalties to put a solution in place, stop
the IRS step them in their tracks. You know. Maybe
it is actually correcting what the IRS says is the
(13:32):
amount due and putting the right amount in there. So
you know that being said, you know, call us at
eight eight eight nine three zero one zero one six
again eight eight eight nine three zero one zero one six.
If you're watching this online, you know we got scrolled
out at the bottom. You can catch our phone numbers.
(13:54):
You can catch our website Taxation Solutions dot net. But
if you're listening to the radio, hey again it's eight
eight eight nine through zero one zero one six. How
do you remove or reduce a penalty. Well, one way
is to prove the I r S is absolutely wrong
and then they should not have charged you a penalty
(14:16):
because you did things correctly. Maybe their system best up,
but generally the I r S doesn't go for that,
and you've got a lot of hurdles to prove. But
you might be able to remove or reduce some penalties
if you acted in good faith and you can show
what the I r S believes is reasonable cause. So
(14:41):
if you weren't able to meet your tax guy obligations
by law, they can't or reduce interest unless the penalty
to reduce. Hey, I got dogs going crazy over here,
but we're gonna let them be a little bit crazy
for a little while. Hey, big good question. Is a
penalty and levy the same thing. Nope, penalties, as we
talked about, is what's being charged for various reasons. The
(15:05):
levy is when the I r S is going to
pull money straight out of your bank account to pay
taxes or penalties that are due to the IRS. So
you know you've got those complications that are are there.
But the I r S does give you a bunch
(15:25):
of warnings and we'll give you the chance to make
that work. Sorry about that. I head to yell my
dog here real quick. Maybe she will be quiet. If not,
we'll have to lock her up. On the next break.
We'll see. She does have her account. She does enjoy.
Not used to be being home during the day because
usually I'm at the office. But today we have a
(15:47):
little bit of ranching to do. We got some meat
birds to take over to the processors we didn't want
to process in ourselves, and then we've got some cattle
to move and everything else. So yes, we do do
some ranching out here. And one of these days were
talking about farm and ranch taxes you know as well,
but we're talking about how to remove penalties. Disagree with
(16:09):
the amount you owe as far as penalties go, you
may dispute the penalty. You can actually call the IRS.
I don't recommend it doing it yourself, because you know
you are vested in this and it becomes a very
testy situation when they just top right and you know,
tell you absolutely no. But if you choose to call
the number on the notice, give them your notice number
(16:33):
there's a letter number in the top right corner, and
then tell them why you're thinking they should reconsider the penalty.
You can also send in a Form eight forty three
disputing or requesting that they abate the penalty, but be
prepared to make sure you have reasonable cause in that notice,
(16:54):
in that letter that you're sending them. And so when
you're calling, have the notice or letter that they sent
you the penalty that you want them to consider, such
as twenty twenty four late filing penalty or twenty twenty
three late filing penalty, and then each penalty you should
have an explanation on why you think it should be removed. Now,
(17:16):
the funny part is is what the IRS is going
to tell you. Even though they'll tell you to do this,
they're going to tell you, well, we can't do that,
and you need to send it in Form eight forty three. See,
there are multiple ways of dealing with the IRS, and
one of these things is is when you call, be
prepared for some ignorance by the people that you're calling
(17:38):
into Also, be prepared that just because a website or
someplace says this is what you should do, doesn't mean
it's the right way to get it done, and it
doesn't mean that the IRS is going to comply what's
in maybe their website that says, hey, this is how
you should do it, so be prepared to file the
Forum eight forty three. You know, the I also tells
(18:03):
you the best way to avoid or get rid of
penalties is don't do anything wrong. You avoid it by
filing an accurate return, paying your taxes by the due date,
and furnishing information returns timely, not applying for credits that
you shouldn't begetting. Apply for an extension of time so
that you're not missing due dates, and then make sure
(18:24):
your taxes are all paid by file that extension. And hey,
the last thing now, Harris tells you is hey, apply
for a payment plan. That's great. If I couldn't afford
my taxes, then how am I going to afford my
taxes on a monthly basis When you're adding more interest
in penalties every single month even though I'm on a
payment plan. Doesn't make sense, but it is the irs.
(18:49):
You know some of the common penalties that you and
I have seen that failure to file penalty it does
accumulate five percent per month on the balance due to
a maximum of twenty five percent fty fty penalty. Estimated
tax payment penalty is equal to the interest lost by
(19:09):
not having sufficient withholding or paying estimated taxes. Throughout the year,
they hit you with penalties and interest on that failure
to pay is a half percent per month of the
ballance due to a maximum of twenty five percent. Those
three penalties alone, and this is stats from twenty nineteen
(19:29):
made up ninety five point five percent of all IRS
civil penalties for individual tax payers. Amazing fifty seven percent
of that is from failure to pay, twenty nine percent
is from estimated taxes, and then about ten percent is
failure to file. So you know, you can ask for
(19:53):
relief and sometimes the IRS grants it, but fewer and
fewer penalties are abated all the time. You know, we
work really hard to get our penalties abated for our clients,
and we spend a lot of time doing it. We
don't charge unless we're successful. We have a fairly good
track record of being successful of getting penalties abated. But again,
(20:16):
you know, we know that it's down to you know,
between ten and fifteen percent of penalties that are actually
abated by the IRS, and therefore there's you know, we
felt that it's not fair to charge you to get
penalty abatements unless we are you know, successful, and it
(20:36):
saves you money, saves you time, and it means we're
going to jump through bigger hoops and try harder than
most people out there because of that request and how
hard it is to get penalty abatements. Now, hey, I'm
going to tell you there's some things out there and
you can get a first time penalty abatement. As I
advise a client, you know, upfront, using a first time
(21:00):
penalty abatement on a forty five dollars penley isn't worth
it to you, me or anything. You're gonna make a
bigger mistake sometime in your life and you're gonna want
that first time penalty abatement. So maybe we don't use
it on that, so, you know, kind of pick and shoes. Hey,
we're gonna take a short break. We're gonna when we
come right back, we're gonna talk a little bit about
(21:22):
some of the dos and don'ts and requesting penalty abatement,
and we're gonna get in talking a little bit about truckers,
trucker taxes and things that truckers need to do and
small business people need to do out there running their
business and whenever you right back.
Speaker 3 (21:38):
This we have only scratched the surface of today's show.
Please stand by as Parry chief Dowler. We'll be right
back with tax talk for you. As an owner operator,
you already spend too much time away from your family.
Trucker Tax Tools handles all your bookkeeping and taxes.
Speaker 2 (21:59):
No matter what level trucker you are.
Speaker 3 (22:01):
Life on the road can be taxing, but that doesn't
mean that your wallet or time with your family should suffer.
Trucker Tax Tools makes your life run smoothly. Go to
Trucker tax Tools dot com for a free guide that
will give you the tools to never worry about your
taxes again. Call Trucker Tax Tools eight seven seven nine
(22:24):
sixty six two four seven seven or go to Trucker
tax Tools dot com now and let the experts keep
you trucking. Let's get back to tax stock for you
with more tax stock once again, here's your host, Barry G.
Speaker 2 (22:42):
Feller.
Speaker 4 (22:45):
Hey, welcome back. Kind of some of the news and
downs of applying for penalty abatement. Yeah, as I said,
sometimes that first time penalty abatement is really good in
using that to obate some penalties. You can use it
if it's you know, your first penalty and you're in compliance.
(23:07):
They made granted over the phone, but a lot of
times they're going to request that you do file that
form eight forty three and to you know, request penalty
abatement using reasonable cause, and you've got to put it
in writing. You know, you've got to attach your evidence,
(23:30):
your rationale to support what is your reasonable cause. Plane
eighty three is preferable because if you change the minimum
requirements to identify what penalties you're trying to debate, now,
you're going to have to do this for every penalty
that the i r S is charged. So if you
have different years and you have the penalties out there, uh,
(23:53):
they will require an eight forty three for each and
every year and every form. If you get an adverse
decision determination by the I r S, you can appeal
the i r S denial of that penalty abatement. You know,
if any of the criteria its own merits does not
(24:13):
qualify for you an abatement, there are other reasons may
be have been ignored. This occurs because the I r
S uses guess what computers probably AI now assistant penalty
abatement determination and it can be flawed. So based on
that flowed tool. Using appeal of it is sometimes worthy.
(24:39):
Make sure you're very clear specific on the circumstances that
we're outside your control that caused the non compliance. You know, illness, incapacitation, lost, recordless, hurricane, fire,
you name it. It could be the things out there,
(25:00):
no jasper. Now see my lab's going crazy. There must
be something outside the window and she's now going nuts.
You got to show the timeline as well, and provide
very specific and chronological uh chronology of the events for
(25:20):
the time period of non compliance. You know, if you've
got illness, show that doctors letter showing your incapacitation inability
to perform normal support activities that gave you reasonable cause.
Also show prior clients. IRS basically states they should use
(25:43):
penalties to deter non compliance. Taxpayers should prepared to exploit
the small amounts of prior penalties so you know they
will make sure that you're going to be in compliance
and then don't forget follow up. Sometimes I hate to
tell you, things get lost at the i r S
(26:06):
and sometimes your penalty abatement cannot be tracked within the
I r S. You can't track it on I r S. Transcripts.
You have to call the I R S and make
sure that they all the information and make sure that
(26:28):
they are following through with it. And if you are
requesting penalty abatement and you have not paid the penalties,
make sure you get some kind of cluction hold on
your account while the abatement is being requested and worked
on so that they don't come in levy your bank account. Now,
(26:49):
there's a lot of don'ts that are out there, and
we can kind of sum this up. As you know,
they're saying, don't pay the penalty before requesting reasonable cause.
You can go to a collection you know, don't do
the collection process hearing because it's going to extend the
step to limitations. But you can use it to thoroughly
(27:13):
consider a penalty abatement and has a good chance of
doing that only after you have exhausted using the eight
forty three requesting that penalty company. Refreshing to hear hear
our dog while talking about stress of ire as. I
love dogs, man, We love our dogs. We see my
(27:34):
border colleagues up here in the window. Her name is
Albi and there's a long story behind that. Talking about
dogs here real quick, My albi. I was actually out
buying a cup of cattle and they had some Border
collies and my wife said, oh, you can pick up one,
and I said, well, I like two of them here.
I was going to pick them both up. She said,
(27:56):
not unless I get a puppy, and I laugh. And
of course they had the border colleagues there where I
was getting them, and they were giving them awaye and
here bread, and she was going to help be an
outside dog and chase my cattle and everything. Well you
could tell she's in the house and having fun. And
she doesn't chase my cattle because she's in the house.
(28:19):
And that's my alibi. I named her alibi as a joke.
And guess what, it's tough SEEA. Thanks for bringing that up.
I mean, it's got to have a little bit of
fun while we're talking our dogs out here seeing something
out in the past year. I just don't know what
it is. Anyway, I r S is going to reject
(28:41):
your penalty abatement request. You're using your abatement that you
based on reliance on a tax pro and or financial hardship.
IRS has strong backing for these two decisions based on
court rulings you're going to get a very quick determination
(29:02):
letter saying it's been rejected, and you'll have very little
appeal rights or consideration if you'll take that to appeals. Now.
I also tell you that you can ask for penalty abatement,
but you got to do it right in the right
amount of time, during the right statute of limitations three
(29:24):
years from when the return was filed or two years
after the penalty was paid. In the past, the IRS
sometimes allowed penalty fun past the expiration date. However, the
IRS has corrected this and not going to allow that
outside of the timeframes are met rejections. So you know,
you kind of got to do things right. Don't expect
(29:47):
anything to be done quickly. We have had penalty abatements
be out there for six months, eight months, almost a year,
and if they if they do abate the penalty, make
sure they've abated it correctly by looking at your transcripts
(30:07):
and you can verify that the penalty abatement, you know
what's out there. If you go to appeals again, you're
adding an under six to twelve months for that process
to happen. It's amazing sometimes how slow the I R
s can be when dealing with the type of things
(30:29):
and the penalties and and relief for you and every
taxpayer that's out there. So you know, if you do
have penalties, I recommend you get some help using taxation solutions,
tax relief or truck or tax tools. We can get
(30:49):
holds placed on your account. We actually step in use
with power of the attorney, and then we can put
holds in place, working on the penalty abatement, even possibly
work on a solution for you that could be just
as good as getting the penaltiesbatements. Sometimes, you know, the
things that we can put in place for you are
(31:10):
solutions that you need to get your life.
Speaker 2 (31:13):
Back in order.
Speaker 4 (31:15):
Let's talk about small businesses and trucking. You know, when
we start talking about and we were talking about penalties,
one of the worst penalties that's out there. If you're
running a business, even a trucking business, and you've got
payroll is the payroll taxes. When you're not paying the
payroll taxes or filing timely the payroll tax returns, you're
(31:36):
going to get hit with penalties. And those penalties can
be strong and severe, and it's good to have a
guard dog that can you keep the irs so wait,
maybe that's what's out there outside the gates, the irs
coming after penalty. I don't have any, thank god, but
you know, hey, we we help take care of your
(32:00):
business and everything as far as penalties go. But if
you missed peril tax payments and you're going to have
you know the penalty of course late filing and not paying.
But if the money stays out there long enough that
iron this is going to come after you as the
business owner or signer on checking account for trust fund
(32:23):
penalties and trust fund PENALTI is going to be severe.
Talk about how severe it is. We get to talk
about that right after this break, So stay tuned. Let's
talk about trust fund penalties and how to get away
from right after that.
Speaker 3 (32:37):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Dower will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family. Stop
spending time doing paperwork. Go to truck or tax tools
(32:57):
dot com, a solution filts specifically for truckers. Trucker tax
toools dot com makes your life run smoothly. Let's get
back to tax talk for you with more tax talk
once again. Here's your host, Barry G.
Speaker 2 (33:15):
Fallam aver Rat.
Speaker 4 (33:19):
Hey love to hear things from people, and that people
are listening, Jesse, Yes, I know you love to hear
stories like our dog stories and cattle stories. That is cool. Yeah.
I like the name for our puppy, Alibi. You know,
my daughter gave me a hard time because I was
(33:40):
talking to her on driving back from picking up the
two calves and I told her that I named her Alibi,
and she's like, oh, that is a crazy name. Well
guess what we got home. My daughter saw the puppy
said oh, she's got to have one of her own.
So we actually went back and picked up her brother
and my daughter decided to name hers Rooster. No, it's
(34:04):
not a chicken, it's a dog. He's a great, great
puppy and he's been fantastic and everything.
Speaker 2 (34:11):
Yeah.
Speaker 4 (34:12):
But hey, if you had our services, would be covered
for any penalties. Well, if you fail to pay, you're
not covered. If we fail to file, because you signed
your returns and you did the things that we've asked
you to do, then the failure to file penalty would
fall on us. If we do stuff wrong, I mean
(34:33):
we guarantee the accuracy. As long as you provided us
all the information, then you're covered for you know, those
kind of penalties. If you fail to give us stuff,
there's nothing we can do regards to that. If you're
doing payroll with us, we make sure everything is filed timely,
in and correctly. If you balance your payments, hey, I'm
(34:55):
not here to cover your money. You've got to make
sure that you've got money in the account. Pay the
payroll taxes as you go through. Now we talked about
the bad things in penalties, and we're talking about small business.
Whether you're a truck or and you're running payroll or
your small business and have payroll, not paying those payroll
(35:15):
taxes can become deadly for you and any other owner
in the business or manager if they're a signer, because
when the IRS hits you with trust fund, trust fund
is simply the amount of money you withheld from your
employees check or payroll. So the federal withholding Social Security
and Medicare on the employee side can be charged to
(35:38):
any person of responsibility in the company, and the IRS
will assess those trust fund penalties, the civil penalty that
you will have to pay. Now they hit you with
that on the person's side, and everybody else responsible. The
really bad part is is that if you have an
(36:00):
employee who is a signer on a checking account and
you don't pay the trust fund penalties, they can be
hit with trust fund penalties as well and in collect
from them. Kind of amazing out here. Yeah, I've still
got dogs going crazy. There's nothing I can do about it,
and I'm sorry making noise back there, but hey, got
(36:22):
to love them. You know, We've got four dogs here
in the household, and three of them decided they want
to make noise while I'm out on radio. So hey,
we're having fun and talking and talk through them. Can
we get penalty abatement on trust fund penalties? Yes, we can.
As a matter of fact, a lot of times what
(36:43):
we've done is has gotten penalty abatement for people that
are not really in position of responsibility, and we find
ways to get around. Also, we want to look at
very carefully, is you know what can we do to
event this on your side? And sometimes it is making
sure that you've paid the trust fund part of the
(37:05):
penalties off, the trust fund taxes off, and that the
IRS applies it correctly so that they cannot assess the
trust fund penalty. We had a client who owed a
considerable amount of taxes and had one year that they
were going to hit asorbitly trust fund penalties, and we
(37:25):
managed to get them to pay off the trust fund
portion of the tax that applied correctly and then avoided
that whole trust fund of it. The revenue officer who
was dealing with us was disputing me and arguing with
me that we couldn't do that. Went straight to the
manager and we made the payment listed as strictly as
(37:49):
for the trust fund portion of the taxes and got
away from having that trust fund penalty assess our clients.
And there were two partners in this business, and it
was a significant amount that we were able to avoid.
They were also trying to assess trust funds that were
outside of the statute to be able to do it,
(38:12):
and we were able to get those trust funds penalties
avoided as well. So if you're running up against trust
fund penalties or have payroll taxes, do hey feel free
to give us a call it eight eight to eight
nine three zero one zero one six again eight eight
eight nine three zero one zero one six, Hey, Robert,
great question, truckers. Do all truckers have payroll? No, not,
(38:36):
every trucking company has payroll. If you are a schedule
see filer and you're the only person working, you should
not have payroll, even for your help. Now, if you
were an escort and you're the only driver, yes, you
have to have reasonable wages paid through payroll. Means you
collect you know, the payroll taxes and submitted and filure
(38:57):
ninety W twos every single year. We help tuckers through
this problem many many times. Make sure your company is
set up right, make sure you're reading your e. I N. Letter,
and make sure the taxes are correctly. Hey, Charlie, your
cat firson man, I'm not allowed to say things about cats,
(39:19):
but I do have a couple of barn cats. They're
working cats, and so I come because they do work
in the barn and keep the mice away, usually sometimes
ear late the rest of my pasts. My dogs are
always inside and get to enjoy branch with me. So
it's really good. It's it's one of these days I'm
(39:40):
working from home. I said, I've got a little bit
of ranching to do here today and meet birds to
get over to the processor and pick up the picture
of the butcher as well. So you know, I have
a little bit of a long work day out here,
but it'll be good. And I'm actually enjoying from home
than my dogs being a little bit crazy today. And
(40:03):
normally if I did this from home, they haven't been
that bad today. I decided to leave here out in
the living room and guess what we get to an appointment?
You know, it is what it is, Hey, One thing
I'm going to tell you about truck trucking is a
specialized business and in trucking in itself, you need somebody
(40:24):
that's going to prepare your taxes through your bookkeeping and
keep you on the straight and narrow, and that's what
Trucker Tax does. Trucker Tax tools dot Com very low pricing,
We started twenty five week for your bookkeeping, and you know,
we help take care of you in your business. Make
(40:45):
sure we're finding every single tax deduction and make sure
that you know, minimizing the taxes that you pay to
the I r S, which is what our ultimate goal
is to pay is very little to the eye RS
as possible, maximize the amount of money that you're Hey,
I had to realize my dogs are going to be
(41:07):
such a hit today, you know, Brenda. Yeah, doggies are
getting fifteen minutes of fame. I'm glad you love to
hear them. I wish I was having fifteen minutes of fame.
I get to be on here for an hour, and
then tomorrow I'm going to be on as the experts.
It's at ten am Eastern Time on W four c
(41:28):
Y Radio. So but I won't be doing that one
from home, so we won't have the dogs. I will
be at our headquarters here in Cyprus, Texas and there
at the Truck Tax Tools Taxation Solutions offices, so it'll
be a little bit quieter. Maybe my staff will be
(41:48):
barking at me because I haven't been there today and
I'm not doing work. But hey, that would be a
whole different story, wouldn't it. We could have a little
fun with that. Maybe I'll get one of the staff
to park outside were there and our fun. Hey, every
you turned in and after your friend told you you
could hear things today, my puppies erected to be louder
(42:13):
for you. Amer uh. Hey, thanks for the shout out there.
Good tax advice here as well. Turn in every week.
I don't have buckets every week, but if it brings
more people in the show, I may have to have
it here with puppies around making noise. You know, every
week you can tune into tax Talk for you every
(42:34):
Monday ten eight Eastern time radio. Uh, dogs are just
going crazy here. I'm sorry about that, both of you
trying to listen at home and listen through the buck
of the dogs. Hey, you know one thing I want
to say. I know this weekend was probably a very
(42:57):
stressful weekend and things that have happened here in the
United States and over in Iran and and everything else.
God bless our bless our military, and God bless our president.
You know, the things that our military does for us.
You can never tell them thank you enough for their
(43:18):
advice and putting their country ahead of their family. And
we do appreciate it. You know. We send out our
thanks to our great to military that's out there, you know,
and our prayers to their family. I know it's probably stressful,
(43:39):
and it's now a stressful time. Everybody can can feel
the stress and the air over the things that have happened.
The best thing we can do is continue to enjoy
our freedom, our love of the country and our love
of God with every person out there. Uh he again,
(44:03):
don't miss an episode here. You can go to Facebook
follow us there so you don't miss a single episode.
You don't see the wonderful background of dogs barking or whining.
She may want to go out, so I'm going to
have to let her out right after the show. Maybe
next time I'll introduce you my favorite dog Jaspberry or
(44:26):
Speedy and you know the ones right now to the
points here again every Monday ten at some time on
Tax Off or you and the four CUY Radio two like,
follow us online and we will see you next week.
Have a godless glorious week.
Speaker 3 (44:47):
Are you an individual or business that wants to understand
taxes and how they affect you? Are you looking for
specific tax advice for self employed business.
Speaker 2 (44:58):
Owners and truckers.
Speaker 3 (45:00):
Are you behind on taxes and your bookkeeping? Are you
dealing with dirs and ready to have some relief? Then
you need Tax Talk for you, hosted by tax and
trucker expert Barry G.
Speaker 2 (45:14):
Fowler EA.
Speaker 3 (45:15):
Tune in ten am Eastern time every Monday right here
on W four CY Radio and Talk for TV. Don't
forget to check this and past episodes at tax TALKFORU
dot com.
Speaker 2 (45:28):
See you next week at W fourcy dot com.
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicit or implies shall be extended to W FOURCY
Radio or it's employees are affiliates. Any questions or comments
should be directed to those show hosts. Thank you for
(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fouler EA, bringis you tax talk for you right here
on W four CY Radio and talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:58):
Barry G. Foul Or.
Speaker 4 (01:02):
A good Monday morning to everybody. Hope everybody is going
to have a great beak. It's a way to get
started here and talking about you know, taxes, taxes, taxes,
in this case. You know, what we're really talking about
today is i RS penalties. That's right. I r S
(01:25):
charges penalties. Hopefully you've never seen them, but for those
people when you're paying your taxes, sometimes you just don't
beat all of your tax obligations and end owing a penalty.
You know, IRIS does charge penalties for various reasons. You know,
things like not filing your tax return on time, not
(01:46):
paying any tax code on time and in the right way.
I mean you imagine that at least you paid it right.
You didn't do it in the right way. You get
a penalty. Prepare and file it returns, provide accurate and
timely filed information. Returns, yes, even returns that just there
(02:08):
to give them information, and you got to file them
and you didn't file it on time. Guess what, smack
penalty right on you. And then the I r S
is going to charge you interest on a penalty if
you don't pay it in full, and some penalties they
continue to charge every month until you pay the full amount.
(02:29):
You know, there are different types of penalties, and you
know there are certain things you need to do if
you get a penalty and to avoid penalties. But how
do you know, well, first off, I R. S Is
going to send you a love letter. We love your money.
We charged your penalty. We're hitting you with interest. Please
(02:50):
pay us. But if you don't open that envelope and
read it, unlikely you're going to. You would know that
the I R S gets you slapped you with penalty.
They slap you when you're down. So that notice or
lettuce letter read it. It'll tell you about the penalty,
the reason for the charge, and what they expect you
(03:14):
to do next. Now you know, I arrest have been
known to be wrong. I mean I've seen them because
you haven't filed an extension where you actually bailed the
extension in instead of having it electronically filed, which the
extension only got you an extension of time to file,
not in time to pay. See when you're filing your
(03:34):
personal tax return, you're ten forty and you file that extension,
it's not an extension of time to pay. They expect
you to estimate how much you have to pay and
to pay it in and as long as it's less
than about nine hundred dollars that you owe in the difference,
you know they're not going to hit you with penalty
as long as you file on time. But if you
don't pay and you're going to owe, guess what, slap
(03:59):
that penalty on you as soon as you file plus
back interest. And it's just one of those things, hey,
we got to deal with. So maybe you filed your
extension and you got proof of it and we can
verify it with the I R S, we can remove
that penalty. Now, there are different types of penalties, and
you know the IRS is going to send you notices
(04:21):
about them if you have those uh incurred information returns.
It applies to taxpayers that don't file or furnish their
required information return or pay the statement correctly by the
due date. Hey, in ninety nine is an information return?
Your W two's Actually, if you don't file the W
(04:42):
two W three with Solid Security Administration, man, you should
see the penalty that they hit you with. Those are
incredible penalties in amongst itself, so you know you have
those things that become major problems. Failure to file This
means you didn't file your tax return by the due
(05:03):
date or extended due date, and they slap you with
that penalty. Fail you're to pay. Okay, you owed money,
you didn't pay it by the due date. You didn't
pay it when you filed the tax return, and guess what,
right there another penalty. Isn't it bad enough that you
owe them money if they're going to turn around and
hit you with the penalty and an interest on top
(05:24):
of that, we get to have fun here. We can
complain about the IRS. You know, if we didn't have
the IRS, how many people would actually file a tax return? Nobody?
There'd be no compliance. So you know, if no IRS,
no collection activity, you wouldn't be scared. You're not going
to file.
Speaker 2 (05:43):
See.
Speaker 4 (05:43):
The IRS also hits you with accuracy related penalties. This
applies when you don't claim all your income or when
you claim deductions or credits for which you don't qualify for.
You know, so if if you left off A ten
ninety nine and NEC left off of W two, the
(06:03):
I r S Is going to send you a notice
saying this isn't accurate. This is the information we got
and therefore it hits you with penalties. What's amazing, and
I've seen it is people who are in business. Maybe
you're running a small business or an uber or ride
share or Airbnb, and you're taking credit card payments. And
(06:26):
you get the ten ninety nine k that's what the
I r S gets it too. And now the i
r S is actually doing checks and balances to those
ten und nine k's, which is basically all your merchant transactions.
And if the money isn't matching up or total, isn't
it greater than that?
Speaker 2 (06:45):
Man?
Speaker 4 (06:46):
Guess what you're going through? A audit maybe a correspondence audit.
It could be alive on it depending on how much
those ten nine k's were. Here's a good one, and
this is what the IRS has been really on, especially
those that filed for the ERC credits Employer Retention Credits.
Erroneous claim for refund or credit credit penalting. This applies
(07:11):
when you submit a claim for refund or credit of
income tax for an excessive amount and reasonable cause it
doesn't apply, meaning you went for this credit, but you
don't really qualify for it, and you have no reasonable
explanation of why you would have applied for this credit.
Now the IRS has a failure to deposit. It applies
(07:33):
when you don't pay employment taxes accurately or on time,
so you know they want you to go to EFTPS
and put the payments through or if you're using a
payroll provider, submit those payments electronically. They really don't want
them sent by check anymore. And you didn't follow the
procedures of what you're required to do, and the I
(07:54):
r S will tell you every year here's how you've
got a deposit. You may be a weekly deposit and
are semi weekly, quarterly, or annual depositor. It just depends
on how much payroll you have. But the IRS is
going to send you that notice in January of how
you've got to make your payroll tax posits. You know,
(08:16):
people think tax preprayers sometimes are get out scott free,
and you know, all we do is prepare returns. But
there are tax preparer penalties which apply to people that
return do returns, but they engage in miskindom. I mean,
you've seen it. You know, people prepare returns and they
throw things in that shouldn't be there. Those guys and
(08:39):
gals have gotten in trouble. We've seen it where people
have got in trouble. But it not only affects a
tax preprayer, but it affects you as well. Using somebody
unscrupulous like that, because they're going to still hold you
responsible for that as well. Hey, if you've paid maybe
some taxes due and you did it by check and
that check got return and it's f insufficient funds or
(09:02):
some other form of payment was applied. When your bank
doesn't honor your check or other forum payment, it smacks
you with penalties. You know, when things are tough, it
just make it worse. It gets tougher if you did
an underpayment of estimated tax for your company. It applies
(09:22):
when you didn't make estimated taxes. You're an eleven twenty,
you're ac corp, and you've got taxes and you've got
to pay the taxes. They can hit you a penalty
if you don't do correct estimated tax payments. That's the
same thing that goes for you as an individual. If
you're required to make estimated tax payments, you need to
(09:43):
make them, and you need to make them on time.
The first one was due April fifteen, second one June fifteen,
The third one's going to be due in September the fifteenth,
and then the next one's January fifteenth. Now if that
falls on the weekend, of course, it's the next business debt.
But if you don't make those estimated tax payments. Guess
what the IRS again, it's you right between the eyes
(10:06):
with another penalty. See, the IRS expects compliance. They expect
you to follow all their rules and regulations, the tax laws,
whether you know or not. And that's why you're here
at tax Talk for you dot com because you need
to know how to save yourself from penalties and interest. Hey,
(10:26):
when we come back, we're going to talk more about
IRS penalties and we'll even get into how to abate
IRS penalties right after this.
Speaker 3 (10:35):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Fowler will be right back
with tax Talk for you. If you owe the I
R S or are going through an IRS audit, don't
go at it alone. Called Taxation Solutions tax Relief at
(10:55):
eight eight eight.
Speaker 2 (10:57):
Nine three zero one zero one six.
Speaker 3 (11:00):
We are your solution for IRS debts, audits, back taxes, garnishments,
leans and levees. Whether you're an individual or business, you
need a solution and a strong aggressive tax resolution. Don't
let the IRS walk all over you. Stop the IRS
now call eight eight eight nine three zero one zero
(11:23):
one six or go to Taxationsolutions dot net now for
a free, no obligation consultation. Let's get back to tax
Stock for You with more tax Talk once again.
Speaker 2 (11:40):
Here's your host, Barry G. Foller.
Speaker 4 (11:45):
Hey, welcome back. And you know penalty if you're a
second or two late, don't worry about it. We don't
charge penalties. So you're at tex Talk for you. One
thing that I would tell you is you probably get
over and follow us at tax Talk for You dot
Com that way and never late. And we don't have
the charge penalties or interest for you guys not to
be in here on time at the show. Just kidding.
(12:08):
We don't charge penalties or interest, but we love having it.
Got questions, please feel free to submit them to us
at tax Do for You dot com, n W four
c Y Radio. You know, the I r S charges interest.
You know, if you own money, the I r S
charges interests. If you own penalties, I r S charges interest.
(12:29):
The I r S needs to collect money from you
and I and everybody else to fund the government. And
the amount of debt that people have out there as
taxpayers is significant. And if everybody would pay it all in,
you know, today I R S would be thankful. You know,
even if you don't have the money, just pay it
(12:50):
in right, Hey, it doesn't work that way, but they're
going to continue charging interest to make your situation worse
than it is today, and it'll be worse tomorrow because
of the and theccumulation of the penalties. You know, if
the I R. S says, it's just really simple, how
do you get rid of penalties? You pay them, send
the payment, or pay your taxes and fold to stop
(13:11):
future penalties and interest from adding up. Hey, that's simple,
and that's why taxation solutions exist, is one. Maybe it's
to debate penalties to put a solution in place, stop
the IRS step them in their tracks. You know. Maybe
it is actually correcting what the IRS says is the
(13:32):
amount due and putting the right amount in there. So
you know that being said, you know, call us at
eight eight eight nine three zero one zero one six
again eight eight eight nine three zero one zero one six.
If you're watching this online, you know we got scrolled
out at the bottom. You can catch our phone numbers.
(13:54):
You can catch our website Taxation Solutions dot net. But
if you're listening to the radio, hey again it's eight
eight eight nine through zero one zero one six. How
do you remove or reduce a penalty. Well, one way
is to prove the I r S is absolutely wrong
and then they should not have charged you a penalty
(14:16):
because you did things correctly. Maybe their system best up,
but generally the I r S doesn't go for that,
and you've got a lot of hurdles to prove. But
you might be able to remove or reduce some penalties
if you acted in good faith and you can show
what the I r S believes is reasonable cause. So
(14:41):
if you weren't able to meet your tax guy obligations
by law, they can't or reduce interest unless the penalty
to reduce. Hey, I got dogs going crazy over here,
but we're gonna let them be a little bit crazy
for a little while. Hey, big good question. Is a
penalty and levy the same thing. Nope, penalties, as we
talked about, is what's being charged for various reasons. The
(15:05):
levy is when the I r S is going to
pull money straight out of your bank account to pay
taxes or penalties that are due to the IRS. So
you know you've got those complications that are are there.
But the I r S does give you a bunch
(15:25):
of warnings and we'll give you the chance to make
that work. Sorry about that. I head to yell my
dog here real quick. Maybe she will be quiet. If not,
we'll have to lock her up. On the next break.
We'll see. She does have her account. She does enjoy.
Not used to be being home during the day because
usually I'm at the office. But today we have a
(15:47):
little bit of ranching to do. We got some meat
birds to take over to the processors we didn't want
to process in ourselves, and then we've got some cattle
to move and everything else. So yes, we do do
some ranching out here. And one of these days were
talking about farm and ranch taxes you know as well,
but we're talking about how to remove penalties. Disagree with
(16:09):
the amount you owe as far as penalties go, you
may dispute the penalty. You can actually call the IRS.
I don't recommend it doing it yourself, because you know
you are vested in this and it becomes a very
testy situation when they just top right and you know,
tell you absolutely no. But if you choose to call
the number on the notice, give them your notice number
(16:33):
there's a letter number in the top right corner, and
then tell them why you're thinking they should reconsider the penalty.
You can also send in a Form eight forty three
disputing or requesting that they abate the penalty, but be
prepared to make sure you have reasonable cause in that notice,
(16:54):
in that letter that you're sending them. And so when
you're calling, have the notice or letter that they sent
you the penalty that you want them to consider, such
as twenty twenty four late filing penalty or twenty twenty
three late filing penalty, and then each penalty you should
have an explanation on why you think it should be removed. Now,
(17:16):
the funny part is is what the IRS is going
to tell you. Even though they'll tell you to do this,
they're going to tell you, well, we can't do that,
and you need to send it in Form eight forty three. See,
there are multiple ways of dealing with the IRS, and
one of these things is is when you call, be
prepared for some ignorance by the people that you're calling
(17:38):
into Also, be prepared that just because a website or
someplace says this is what you should do, doesn't mean
it's the right way to get it done, and it
doesn't mean that the IRS is going to comply what's
in maybe their website that says, hey, this is how
you should do it, so be prepared to file the
Forum eight forty three. You know, the I also tells
(18:03):
you the best way to avoid or get rid of
penalties is don't do anything wrong. You avoid it by
filing an accurate return, paying your taxes by the due date,
and furnishing information returns timely, not applying for credits that
you shouldn't begetting. Apply for an extension of time so
that you're not missing due dates, and then make sure
(18:24):
your taxes are all paid by file that extension. And hey,
the last thing now, Harris tells you is hey, apply
for a payment plan. That's great. If I couldn't afford
my taxes, then how am I going to afford my
taxes on a monthly basis When you're adding more interest
in penalties every single month even though I'm on a
payment plan. Doesn't make sense, but it is the irs.
(18:49):
You know some of the common penalties that you and
I have seen that failure to file penalty it does
accumulate five percent per month on the balance due to
a maximum of twenty five percent fty fty penalty. Estimated
tax payment penalty is equal to the interest lost by
(19:09):
not having sufficient withholding or paying estimated taxes. Throughout the year,
they hit you with penalties and interest on that failure
to pay is a half percent per month of the
ballance due to a maximum of twenty five percent. Those
three penalties alone, and this is stats from twenty nineteen
(19:29):
made up ninety five point five percent of all IRS
civil penalties for individual tax payers. Amazing fifty seven percent
of that is from failure to pay, twenty nine percent
is from estimated taxes, and then about ten percent is
failure to file. So you know, you can ask for
(19:53):
relief and sometimes the IRS grants it, but fewer and
fewer penalties are abated all the time. You know, we
work really hard to get our penalties abated for our clients,
and we spend a lot of time doing it. We
don't charge unless we're successful. We have a fairly good
track record of being successful of getting penalties abated. But again,
(20:16):
you know, we know that it's down to you know,
between ten and fifteen percent of penalties that are actually
abated by the IRS, and therefore there's you know, we
felt that it's not fair to charge you to get
penalty abatements unless we are you know, successful, and it
(20:36):
saves you money, saves you time, and it means we're
going to jump through bigger hoops and try harder than
most people out there because of that request and how
hard it is to get penalty abatements. Now, hey, I'm
going to tell you there's some things out there and
you can get a first time penalty abatement. As I
advise a client, you know, upfront, using a first time
(21:00):
penalty abatement on a forty five dollars penley isn't worth
it to you, me or anything. You're gonna make a
bigger mistake sometime in your life and you're gonna want
that first time penalty abatement. So maybe we don't use
it on that, so, you know, kind of pick and shoes. Hey,
we're gonna take a short break. We're gonna when we
come right back, we're gonna talk a little bit about
(21:22):
some of the dos and don'ts and requesting penalty abatement,
and we're gonna get in talking a little bit about truckers,
trucker taxes and things that truckers need to do and
small business people need to do out there running their
business and whenever you right back.
Speaker 3 (21:38):
This we have only scratched the surface of today's show.
Please stand by as Parry chief Dowler. We'll be right
back with tax talk for you. As an owner operator,
you already spend too much time away from your family.
Trucker Tax Tools handles all your bookkeeping and taxes.
Speaker 2 (21:59):
No matter what level trucker you are.
Speaker 3 (22:01):
Life on the road can be taxing, but that doesn't
mean that your wallet or time with your family should suffer.
Trucker Tax Tools makes your life run smoothly. Go to
Trucker tax Tools dot com for a free guide that
will give you the tools to never worry about your
taxes again. Call Trucker Tax Tools eight seven seven nine
(22:24):
sixty six two four seven seven or go to Trucker
tax Tools dot com now and let the experts keep
you trucking. Let's get back to tax stock for you
with more tax stock once again, here's your host, Barry G.
Speaker 2 (22:42):
Feller.
Speaker 4 (22:45):
Hey, welcome back. Kind of some of the news and
downs of applying for penalty abatement. Yeah, as I said,
sometimes that first time penalty abatement is really good in
using that to obate some penalties. You can use it
if it's you know, your first penalty and you're in compliance.
(23:07):
They made granted over the phone, but a lot of
times they're going to request that you do file that
form eight forty three and to you know, request penalty
abatement using reasonable cause, and you've got to put it
in writing. You know, you've got to attach your evidence,
(23:30):
your rationale to support what is your reasonable cause. Plane
eighty three is preferable because if you change the minimum
requirements to identify what penalties you're trying to debate, now,
you're going to have to do this for every penalty
that the i r S is charged. So if you
have different years and you have the penalties out there, uh,
(23:53):
they will require an eight forty three for each and
every year and every form. If you get an adverse
decision determination by the I r S, you can appeal
the i r S denial of that penalty abatement. You know,
if any of the criteria its own merits does not
(24:13):
qualify for you an abatement, there are other reasons may
be have been ignored. This occurs because the I r
S uses guess what computers probably AI now assistant penalty
abatement determination and it can be flawed. So based on
that flowed tool. Using appeal of it is sometimes worthy.
(24:39):
Make sure you're very clear specific on the circumstances that
we're outside your control that caused the non compliance. You know, illness, incapacitation, lost, recordless, hurricane, fire,
you name it. It could be the things out there,
(25:00):
no jasper. Now see my lab's going crazy. There must
be something outside the window and she's now going nuts.
You got to show the timeline as well, and provide
very specific and chronological uh chronology of the events for
(25:20):
the time period of non compliance. You know, if you've
got illness, show that doctors letter showing your incapacitation inability
to perform normal support activities that gave you reasonable cause.
Also show prior clients. IRS basically states they should use
(25:43):
penalties to deter non compliance. Taxpayers should prepared to exploit
the small amounts of prior penalties so you know they
will make sure that you're going to be in compliance
and then don't forget follow up. Sometimes I hate to
tell you, things get lost at the i r S
(26:06):
and sometimes your penalty abatement cannot be tracked within the
I r S. You can't track it on I r S. Transcripts.
You have to call the I R S and make
sure that they all the information and make sure that
(26:28):
they are following through with it. And if you are
requesting penalty abatement and you have not paid the penalties,
make sure you get some kind of cluction hold on
your account while the abatement is being requested and worked
on so that they don't come in levy your bank account. Now,
(26:49):
there's a lot of don'ts that are out there, and
we can kind of sum this up. As you know,
they're saying, don't pay the penalty before requesting reasonable cause.
You can go to a collection you know, don't do
the collection process hearing because it's going to extend the
step to limitations. But you can use it to thoroughly
(27:13):
consider a penalty abatement and has a good chance of
doing that only after you have exhausted using the eight
forty three requesting that penalty company. Refreshing to hear hear
our dog while talking about stress of ire as. I
love dogs, man, We love our dogs. We see my
(27:34):
border colleagues up here in the window. Her name is
Albi and there's a long story behind that. Talking about
dogs here real quick, My albi. I was actually out
buying a cup of cattle and they had some Border
collies and my wife said, oh, you can pick up one,
and I said, well, I like two of them here.
I was going to pick them both up. She said,
(27:56):
not unless I get a puppy, and I laugh. And
of course they had the border colleagues there where I
was getting them, and they were giving them awaye and
here bread, and she was going to help be an
outside dog and chase my cattle and everything. Well you
could tell she's in the house and having fun. And
she doesn't chase my cattle because she's in the house.
(28:19):
And that's my alibi. I named her alibi as a joke.
And guess what, it's tough SEEA. Thanks for bringing that up.
I mean, it's got to have a little bit of
fun while we're talking our dogs out here seeing something
out in the past year. I just don't know what
it is. Anyway, I r S is going to reject
(28:41):
your penalty abatement request. You're using your abatement that you
based on reliance on a tax pro and or financial hardship.
IRS has strong backing for these two decisions based on
court rulings you're going to get a very quick determination
(29:02):
letter saying it's been rejected, and you'll have very little
appeal rights or consideration if you'll take that to appeals. Now.
I also tell you that you can ask for penalty abatement,
but you got to do it right in the right
amount of time, during the right statute of limitations three
(29:24):
years from when the return was filed or two years
after the penalty was paid. In the past, the IRS
sometimes allowed penalty fun past the expiration date. However, the
IRS has corrected this and not going to allow that
outside of the timeframes are met rejections. So you know,
you kind of got to do things right. Don't expect
(29:47):
anything to be done quickly. We have had penalty abatements
be out there for six months, eight months, almost a year,
and if they if they do abate the penalty, make
sure they've abated it correctly by looking at your transcripts
(30:07):
and you can verify that the penalty abatement, you know
what's out there. If you go to appeals again, you're
adding an under six to twelve months for that process
to happen. It's amazing sometimes how slow the I R
s can be when dealing with the type of things
(30:29):
and the penalties and and relief for you and every
taxpayer that's out there. So you know, if you do
have penalties, I recommend you get some help using taxation solutions,
tax relief or truck or tax tools. We can get
(30:49):
holds placed on your account. We actually step in use
with power of the attorney, and then we can put
holds in place, working on the penalty abatement, even possibly
work on a solution for you that could be just
as good as getting the penaltiesbatements. Sometimes, you know, the
things that we can put in place for you are
(31:10):
solutions that you need to get your life.
Speaker 2 (31:13):
Back in order.
Speaker 4 (31:15):
Let's talk about small businesses and trucking. You know, when
we start talking about and we were talking about penalties,
one of the worst penalties that's out there. If you're
running a business, even a trucking business, and you've got
payroll is the payroll taxes. When you're not paying the
payroll taxes or filing timely the payroll tax returns, you're
(31:36):
going to get hit with penalties. And those penalties can
be strong and severe, and it's good to have a
guard dog that can you keep the irs so wait,
maybe that's what's out there outside the gates, the irs
coming after penalty. I don't have any, thank god, but
you know, hey, we we help take care of your
(32:00):
business and everything as far as penalties go. But if
you missed peril tax payments and you're going to have
you know the penalty of course late filing and not paying.
But if the money stays out there long enough that
iron this is going to come after you as the
business owner or signer on checking account for trust fund
(32:23):
penalties and trust fund PENALTI is going to be severe.
Talk about how severe it is. We get to talk
about that right after this break, So stay tuned. Let's
talk about trust fund penalties and how to get away
from right after that.
Speaker 3 (32:37):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Dower will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family. Stop
spending time doing paperwork. Go to truck or tax tools
(32:57):
dot com, a solution filts specifically for truckers. Trucker tax
toools dot com makes your life run smoothly. Let's get
back to tax talk for you with more tax talk
once again. Here's your host, Barry G.
Speaker 2 (33:15):
Fallam aver Rat.
Speaker 4 (33:19):
Hey love to hear things from people, and that people
are listening, Jesse, Yes, I know you love to hear
stories like our dog stories and cattle stories. That is cool. Yeah.
I like the name for our puppy, Alibi. You know,
my daughter gave me a hard time because I was
(33:40):
talking to her on driving back from picking up the
two calves and I told her that I named her Alibi,
and she's like, oh, that is a crazy name. Well
guess what we got home. My daughter saw the puppy
said oh, she's got to have one of her own.
So we actually went back and picked up her brother
and my daughter decided to name hers Rooster. No, it's
(34:04):
not a chicken, it's a dog. He's a great, great
puppy and he's been fantastic and everything.
Speaker 2 (34:11):
Yeah.
Speaker 4 (34:12):
But hey, if you had our services, would be covered
for any penalties. Well, if you fail to pay, you're
not covered. If we fail to file, because you signed
your returns and you did the things that we've asked
you to do, then the failure to file penalty would
fall on us. If we do stuff wrong, I mean
(34:33):
we guarantee the accuracy. As long as you provided us
all the information, then you're covered for you know, those
kind of penalties. If you fail to give us stuff,
there's nothing we can do regards to that. If you're
doing payroll with us, we make sure everything is filed timely,
in and correctly. If you balance your payments, hey, I'm
(34:55):
not here to cover your money. You've got to make
sure that you've got money in the account. Pay the
payroll taxes as you go through. Now we talked about
the bad things in penalties, and we're talking about small business.
Whether you're a truck or and you're running payroll or
your small business and have payroll, not paying those payroll
(35:15):
taxes can become deadly for you and any other owner
in the business or manager if they're a signer, because
when the IRS hits you with trust fund, trust fund
is simply the amount of money you withheld from your
employees check or payroll. So the federal withholding Social Security
and Medicare on the employee side can be charged to
(35:38):
any person of responsibility in the company, and the IRS
will assess those trust fund penalties, the civil penalty that
you will have to pay. Now they hit you with
that on the person's side, and everybody else responsible. The
really bad part is is that if you have an
(36:00):
employee who is a signer on a checking account and
you don't pay the trust fund penalties, they can be
hit with trust fund penalties as well and in collect
from them. Kind of amazing out here. Yeah, I've still
got dogs going crazy. There's nothing I can do about it,
and I'm sorry making noise back there, but hey, got
(36:22):
to love them. You know, We've got four dogs here
in the household, and three of them decided they want
to make noise while I'm out on radio. So hey,
we're having fun and talking and talk through them. Can
we get penalty abatement on trust fund penalties? Yes, we can.
As a matter of fact, a lot of times what
(36:43):
we've done is has gotten penalty abatement for people that
are not really in position of responsibility, and we find
ways to get around. Also, we want to look at
very carefully, is you know what can we do to
event this on your side? And sometimes it is making
sure that you've paid the trust fund part of the
(37:05):
penalties off, the trust fund taxes off, and that the
IRS applies it correctly so that they cannot assess the
trust fund penalty. We had a client who owed a
considerable amount of taxes and had one year that they
were going to hit asorbitly trust fund penalties, and we
(37:25):
managed to get them to pay off the trust fund
portion of the tax that applied correctly and then avoided
that whole trust fund of it. The revenue officer who
was dealing with us was disputing me and arguing with
me that we couldn't do that. Went straight to the
manager and we made the payment listed as strictly as
(37:49):
for the trust fund portion of the taxes and got
away from having that trust fund penalty assess our clients.
And there were two partners in this business, and it
was a significant amount that we were able to avoid.
They were also trying to assess trust funds that were
outside of the statute to be able to do it,
(38:12):
and we were able to get those trust funds penalties
avoided as well. So if you're running up against trust
fund penalties or have payroll taxes, do hey feel free
to give us a call it eight eight to eight
nine three zero one zero one six again eight eight
eight nine three zero one zero one six, Hey, Robert,
great question, truckers. Do all truckers have payroll? No, not,
(38:36):
every trucking company has payroll. If you are a schedule
see filer and you're the only person working, you should
not have payroll, even for your help. Now, if you
were an escort and you're the only driver, yes, you
have to have reasonable wages paid through payroll. Means you
collect you know, the payroll taxes and submitted and filure
(38:57):
ninety W twos every single year. We help tuckers through
this problem many many times. Make sure your company is
set up right, make sure you're reading your e. I N. Letter,
and make sure the taxes are correctly. Hey, Charlie, your
cat firson man, I'm not allowed to say things about cats,
(39:19):
but I do have a couple of barn cats. They're
working cats, and so I come because they do work
in the barn and keep the mice away, usually sometimes
ear late the rest of my pasts. My dogs are
always inside and get to enjoy branch with me. So
it's really good. It's it's one of these days I'm
(39:40):
working from home. I said, I've got a little bit
of ranching to do here today and meet birds to
get over to the processor and pick up the picture
of the butcher as well. So you know, I have
a little bit of a long work day out here,
but it'll be good. And I'm actually enjoying from home
than my dogs being a little bit crazy today. And
(40:03):
normally if I did this from home, they haven't been
that bad today. I decided to leave here out in
the living room and guess what we get to an appointment?
You know, it is what it is, Hey, One thing
I'm going to tell you about truck trucking is a
specialized business and in trucking in itself, you need somebody
(40:24):
that's going to prepare your taxes through your bookkeeping and
keep you on the straight and narrow, and that's what
Trucker Tax does. Trucker Tax tools dot Com very low pricing,
We started twenty five week for your bookkeeping, and you know,
we help take care of you in your business. Make
(40:45):
sure we're finding every single tax deduction and make sure
that you know, minimizing the taxes that you pay to
the I r S, which is what our ultimate goal
is to pay is very little to the eye RS
as possible, maximize the amount of money that you're Hey,
I had to realize my dogs are going to be
(41:07):
such a hit today, you know, Brenda. Yeah, doggies are
getting fifteen minutes of fame. I'm glad you love to
hear them. I wish I was having fifteen minutes of fame.
I get to be on here for an hour, and
then tomorrow I'm going to be on as the experts.
It's at ten am Eastern Time on W four c
(41:28):
Y Radio. So but I won't be doing that one
from home, so we won't have the dogs. I will
be at our headquarters here in Cyprus, Texas and there
at the Truck Tax Tools Taxation Solutions offices, so it'll
be a little bit quieter. Maybe my staff will be
(41:48):
barking at me because I haven't been there today and
I'm not doing work. But hey, that would be a
whole different story, wouldn't it. We could have a little
fun with that. Maybe I'll get one of the staff
to park outside were there and our fun. Hey, every
you turned in and after your friend told you you
could hear things today, my puppies erected to be louder
(42:13):
for you. Amer uh. Hey, thanks for the shout out there.
Good tax advice here as well. Turn in every week.
I don't have buckets every week, but if it brings
more people in the show, I may have to have
it here with puppies around making noise. You know, every
week you can tune into tax Talk for you every
(42:34):
Monday ten eight Eastern time radio. Uh, dogs are just
going crazy here. I'm sorry about that, both of you
trying to listen at home and listen through the buck
of the dogs. Hey, you know one thing I want
to say. I know this weekend was probably a very
(42:57):
stressful weekend and things that have happened here in the
United States and over in Iran and and everything else.
God bless our bless our military, and God bless our president.
You know, the things that our military does for us.
You can never tell them thank you enough for their
(43:18):
advice and putting their country ahead of their family. And
we do appreciate it. You know. We send out our
thanks to our great to military that's out there, you know,
and our prayers to their family. I know it's probably stressful,
(43:39):
and it's now a stressful time. Everybody can can feel
the stress and the air over the things that have happened.
The best thing we can do is continue to enjoy
our freedom, our love of the country and our love
of God with every person out there. Uh he again,
(44:03):
don't miss an episode here. You can go to Facebook
follow us there so you don't miss a single episode.
You don't see the wonderful background of dogs barking or whining.
She may want to go out, so I'm going to
have to let her out right after the show. Maybe
next time I'll introduce you my favorite dog Jaspberry or
(44:26):
Speedy and you know the ones right now to the
points here again every Monday ten at some time on
Tax Off or you and the four CUY Radio two like,
follow us online and we will see you next week.
Have a godless glorious week.
Speaker 3 (44:47):
Are you an individual or business that wants to understand
taxes and how they affect you? Are you looking for
specific tax advice for self employed business.
Speaker 2 (44:58):
Owners and truckers.
Speaker 3 (45:00):
Are you behind on taxes and your bookkeeping? Are you
dealing with dirs and ready to have some relief? Then
you need Tax Talk for you, hosted by tax and
trucker expert Barry G.
Speaker 2 (45:14):
Fowler EA.
Speaker 3 (45:15):
Tune in ten am Eastern time every Monday right here
on W four CY Radio and Talk for TV. Don't
forget to check this and past episodes at tax TALKFORU
dot com.
Speaker 2 (45:28):
See you next week at W fourcy dot com.
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