Taxpayers faced with past due tax bills are often confronted with penalties which exacerbate the situation. Penalties can be as much as 100% of the tax owed. Taxpayers that can show "reasonable cause" as to why they did not comply with the procedural rules can often get a Penalty Abatement, or removal of the penalties from the account. Each penalty has different factual situations that constitute "reasonable cause" under the law.

There are a variety of penalties that the IRS and other taxing authorities assert against taxpayers.

• Failure-to-File / Late Filing Penalty - this penalty occurs when a taxpayer does not file his or her tax return or does file but does so after the deadline for filing the particular return.
• Failure-to-Pay / Late Paying Penalty - this penalty occurs when a taxpayer does not pay the full amount of the tax due with the return when the payment is due.
• Failure-to-Deposit Penalty - this penalty occurs when a tax deposit (frequently payroll tax deposit) is not made when the tax deposit is due.
• 100% Trust Fund Penalty - this penalty occurs when withheld employment taxes (considered "trust fund" taxes) are not paid to the taxing authority. This penalty is often asserted against "responsible persons" such as owners, executive managers, payroll managers, etc.

If the Internal Revenue Service or South Carolina Department of Revenue has asserted penalties against you or your business (or a former business) and you would like to discuss Penalty Abatements please contact the South Carolina tax collection attorney at Turner-Vaught Law Firm, LLC today at (843) 839-2580 or contact us online.