This post was co-authored by Adam Landy and Erik Doerring.
On July 5, 2011, the United States Tax Court abated penalties assessed by the IRS against a business taxpayer for failure to pay its employment taxes. The Tax Court agreed with the taxpayer that it had shown reasonable cause. In Custom Stairs & Trim Ltd. v. Commissioner, T.C. Memo 2011-155, the taxpayer, Custom Stairs and Trim Ltd. had a history of filing its IRS Form 941 timely and making timely employment tax deposits. Beginning in 2005 and continuing through 2008, however, Custom Stairs began experiencing financial hardship ...
When spouses file a joint income tax return each is jointly and severally liable not only for the reported tax liability, but also for any additional taxes, penalties and interest later claimed by the IRS as due. A spouse can request relief from this joint liability by filing a request for innocent spouse relief with the Internal Revenue Service.
The IRS states that an innocent spouse request must be filed within two years after the date initial collection activities for the unpaid taxes have begun. The United States Tax Court has repeatedly disagreed with the IRS, however, ruling in ...
The "South Carolina Small Business Regulatory Flexibility Act of 2004" requires the South Carolina Department of Revenue (DOR) to review its regulations every five years to ensure that regulations do not place any unnecessary burdens on small businesses. Another provision of South Carolina law requires DOR to review its regulations every five years to determine if they should be retained, amended or repealed. At the conclusion of the review process DOR prepares a report and provides it to the South Carolina Small Business Regulatory Review Committee and the South Carolina Code ...