Way back in 1769 then president Benjamin Franklin wrote a letter about the newly delivered constitution of the USA, in that letter he stated that ‘nothing in this world can be said to be certain, except death and taxes’. President Franklin may not have known it at the time but he was absolutely right and this would be a statement that would ring true for many centuries to come. IT is precisely for this reason that we must always ensure that as business owners, that we always stay onside when it comes to the IRS. I was inspired to write this article after learning about the 226j letter which many businesses have received after failing to comply with the Affordable Care Act, a telling reminder of how important it is that we make nice with the guys at the IRS.
The number of businesses who receive penalties because of small details is absolutely astonishing and if you fail to give the guys at the IRS the information that they need, they have the power to hit you with some heft fines and charges. Even the failure to fill out a correct scale security number can cause headaches for you and the IRS need everything in perfect working order. Of course these fines can be absorbed by the business but they do show what the IRS can do if you get on their wrong side.
The IRS generally don’t deal in emotions but rather facts and figures and they do not care if you ahem field your taxes late because of an emergency, they just know that you didn’t file. The IRS in this regards works in a robotic manner whereby it literally deals with everything in facts. If you fail to do what the IRS want with regards to your taxes then you are setting yourself up to be punished by them, something which nobody wants.
If you are in any doubt as to what the IRS can do if you are found to be in breach of tax law or if you fail to comply with the requirements which they have set out, you should know that the do in fact wield a great deal of power. The IRS have the power to fine you, to penalize you and even to put you put of business if the crime is big enough. Many companies think that they can get away with playing fast and loose with the IRS but these situations very rarely end well and they will always catch up with you. The best bet is to respect the Inland Revenue Service and what they do, comply with whatever they need and then you can keep them off your back as you go about your business.
Very few people win when they enter into a battle with the IRS.