Are you an entrepreneur who’s been struggling to keep up with your income tax payments? Are you thinking you’re still going to have a problem in 2021?
Many are used to the IRS offering blanket penalty abatement for things such as tornadoes, fires, floods, earthquakes, and other natural disasters. They were also hoping the same thing would happen with the pandemic.
However, the IRS has issued guidelines stating there will be no blanket penalty abatement. So, you will have to deal with the IRS on an individual basis to request relief abatement.
If you have questions, be sure to chat with your CPA about the tax implications that are affecting you and your business and see what penalty abatements may be available for you.
Remember, if you’re not paying taxes through payroll for your own personal income as well, you should be making estimated tax payments throughout the year. Those payments are due April, June, September, and January of each year. Failing to keep up with those could also result in penalties and interest.
So, again, it’s important to try to keep up with these payments as much as possible. However, I understand that with the pandemic, it’s been very difficult to have the cashflow needed to keep up with these payments. Educating yourself on what penalty abatement may be available for you would be important.
Again, if you have questions, reach out to your tax preparer and they can help you file the needed documents.
