Business Tax Penalty

Utah Business Tax Penalty Attorneys

Our tax penalty attorneys can represent you to the IRS and work to abate your penalties. Business tax penalties can represent a massive additional financial burden on top of an already difficult tax situation.

Common Business Tax Penalties

• Failure to Deposit Penalty — For late or incorrect payroll tax deposits, ranging from 2% to 15% of the underpayment depending on how late the deposit was made
• Failure to File Penalty — 5% per month of unpaid tax, up to 25%
• Failure to Pay Penalty — 0.5% per month of unpaid tax, up to 25%
• Trust Fund Recovery Penalty (TFRP) — Equal to 100% of undeposited payroll taxes, assessed personally against responsible persons
• Accuracy-Related Penalties — 20–40% of underpayments due to negligence or substantial understatement
• Civil Fraud Penalty — 75% of underpayment attributable to fraud

Penalty Abatement Options

The IRS has several mechanisms to abate (reduce or eliminate) penalties:

• First-Time Penalty Abatement (FTA) — Available to businesses with a clean compliance history for the three prior years
• Reasonable Cause Abatement — Available when the failure was due to reasonable cause and not willful neglect (examples: natural disaster, serious illness, reliance on incorrect professional advice)
• Statutory Exceptions — Certain penalties are automatically waived in qualifying circumstances
• Correction of IRS Error — When the penalty was incorrectly assessed

Why Professional Help Matters

Business penalty abatement requests must be carefully documented and argued. The IRS denies many poorly presented requests. Our attorneys know the specific language, documentation, and arguments that are most effective in securing penalty relief.

Call Michelle Turpin P.C. at (801) 685-0552 before paying any business penalties.

This content is provided for informational purposes only and does not constitute legal advice.