Weekend Edition (09/19/2009) of Wall Street Journal reported that IRS is issuing notices with huge penalty running into hundreds of thousands of dollars to many small business owners for not filing tax shelter disclosure statement with regard to their retirement plans.
It seems that issue involves one piece of missing disclosure paper and the penalty is disproportional. Article said that IRS cannot do anything with penalty amount because Congress has not changed the law.
Does anybody read that article? What is the source of the problem and what exactly IRS is looking from employers to comply with the issues. I believe many tax preparers have helped small business owners to set up various types of retirement plans including Self-Employed 401(K) plans. When I file return for my clients I want to make sure I do right.
Could anybody shed some light on the subject ? And what forms or kind of statement that tax preparer needs to file with the return for the clients. Sorry, I don't have the links to the article. Thanks for any response.
It seems that issue involves one piece of missing disclosure paper and the penalty is disproportional. Article said that IRS cannot do anything with penalty amount because Congress has not changed the law.
Does anybody read that article? What is the source of the problem and what exactly IRS is looking from employers to comply with the issues. I believe many tax preparers have helped small business owners to set up various types of retirement plans including Self-Employed 401(K) plans. When I file return for my clients I want to make sure I do right.
Could anybody shed some light on the subject ? And what forms or kind of statement that tax preparer needs to file with the return for the clients. Sorry, I don't have the links to the article. Thanks for any response.