Pit & Quarry, February 2019

plan most will pay a late penalty of 025 percent per month until the debt is paid in full Interest compounded daily must also be factored in MAKING THE IRS AN OFFER Yes negotiating is an acceptable practice when it comes to tax bills An offer in compromise is an IRS program that many aggregate businesses and their operators use to settle their tax debts for a fraction of face value It cannot however be requested beforehand Naturally the taxpayer must be in compliance and must have the ability to pay and to borrow For example the taxpayer must be current on estimated tax payments or federal income tax withholding must be making payroll tax deposits on time and must have filed all tax returns when making an offer in compromise Like any creditor the IRS prefers a partial payment to no payment at all The IRS might be willing to settle a tax bill for less than the full amount if 1 The owner or the aggregate business is unable to pay the full amount 2 There is doubt as to how much the tax liability is 3 Collection of the liability would create economic hardship or 4 Due to exceptional circumstances such as a medical condition that prevents proper management of financial affairs or reliance on erroneous advice from the IRS PROCRASTINATE The IRS is quite clear It wants all taxes paid when due or sooner even demanding immediate payment when granting extensions of time in which to file the tax return Under some circumstances however a short term extension may be arranged A short term extension gives a crushed stone sand and gravel business or its owner up to 120 days to pay No fee is charged but the late payment penalty plus interest will apply An extension of time to pay is also available to those who can show that payment would cause undue hardship Qualifying for an undue hardship extension means an extra six months to pay the tax shown as due on the tax return The failure to pay penalty will be avoided although interest will still be charged Should the IRS determine a deficiency i e taxes owed in excess of the amount shown as due on the return the undue hardship extension can be as long as 18 months and in exceptional cases another 12 months can be tacked on However no extension will be granted if the deficiency was the result of negligence intentional disregard of the tax rules or fraud In a related area the IRS provides penalty relief for aggregate businesses that can show they have made a good faith effort to comply with reporting requirements No penalties will be imposed for incorrect or incomplete information either on TAXES 360 Eastpark Dr Norwalk Ohio 44857 4196631048 Visit AlliedPBS com or email info@ AlliedPBS com Contact us for our Extensive Dealer Network 98 PIT QUARRY February 2019 pitandquarry com ISTOCK COM BELCHONOCK PROUDLY MADE IN THE USA @ AlliedBooms Paying taxes with a credit card is one way to earn rewards Penalty relief is not available to aggregate businesses that fail to furnish statements or file returns missed applicable deadlines or otherwise are not making a good faith effort to comply