IRS Extends Moratorium on Tax Penalty Fought by Small Business
Posted Tuesday, March 16th, 2010The U.S. Internal Revenue Service will extend a moratorium on penalties until June 1 for failing to report transactions considered tax shelters.
The rule applies to individuals or other taxpayers that fail to disclose transactions the IRS deems as potentially tax evading, such as employer contributions to post-retirement benefit funds. The levy is as high as $100,000 a year for individuals and $200,000 for all other taxpayers, according to the IRS.
It is assessed each year a transaction is not reported and may be charged to both a business and its owner. The department will also “hold off” filing new lien notices on amounts owed, IRS Commissioner Doug Shulman told Congress yesterday.
“The penalty has ended up snagging small businesses that weren’t advised of their responsibility to disclose,” Senator Ben Nelson, a Nebraska Democrat, said in a statement last month. Read full story:











