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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10603
Experience:  30 years of corporate, litigation and international law
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Our business needs to contest civil penalty from failure to

Resolved Question:

Our business needs to contest civil penalty from failure to file W2 penalty (6721-e)from I.R.S. because W2 was on file with Social Security Admini during IRS error with processing from mail in,re-filed form.Penalty is 10% of annual wages, excessive. Should we consult with Taxpayer Advocate Service, or offer in compromise, or pay and ask for abatement? We need a tax clearance for the business in the next 30 days.
Submitted: 5 years ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 5 years ago.

bizlaw :

How much is the penalty and do you have the funds to pay it now? How critical is getting the tax clearance?

Customer:

penalty is $9,800., have funds to pay all, tax clearance is critical to bid on jobs in February, jobs worth over $ 50,000;

Customer:

we dispute amount of penalty , 10% of annual wages for form that was filed

Expert:  Richard - Bizlaw replied 5 years ago.

I had to switch from chat because I could not see your response. Under these circumstances you can pay the penalty without prejudice to your challenge to the validity of the charge. Paying the penalty stops any interest from running if your challenge is not upheld and allows you to get the clearance. If you are stymied at the administrative level you can take the issue to the Tax Court to challenge the assessment.

 

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