Friday, February 5th, 2016
Yes, the IRS can impose penalties if a tax return is not timely filed or if a tax liability is not timely paid. As with all IRS penalties, the rules are complex. However, a taxpayer may avoid a penalty if he or she shows reasonable cause.
Failure to file
The penalty for failure to file a timely return is five percent of the net amount of tax due for each month or partial month of the delinquency, up to a maximum of 25 percent. The penalty runs from the due date of the return until the date the IRS actually receives the late return. If the failure to file an income tax return extends for more than 60 days, the penalty may not be less than the lesser of $135 (subject to annual inflation adjustments) or 100 percent of the tax due on the return. The penalty applies to the net amount due, which is the tax shown on the return and any additional tax found to be due as reduced by any credits for withholding and estimated tax payments.
Failure to pay
The failure-to-pay tax penalty is generally one-half of one percent of the amount of the unpaid tax for each month of the delinquency, up to a maximum of 25 percent for 50 months. For failure to pay tax shown on the return, the penalty is imposed on the amount shown on the return, less amounts that have been withheld, estimated tax payments, partial payments and other applicable credits. For failure to pay a deficiency within the number of days allotted after the date of a notice and demand, the penalty is imposed on the tax stated in the notice, reduced by the amount of any partial payments.
Complexity enters when a taxpayer is subject to both the failure-to-file and the failure-to-pay penalty. In this case, the failure-to-file penalty is generally reduced by the amount of the failure-to-pay penalty. Every taxpayer’s situation is unique, so please contact our office for more details.
The failure-to-pay penalty does not apply if the taxpayer shows that the failure-to-pay was due to reasonable cause and not to willful neglect. Generally, the taxpayer must pay the tax due before the IRS will abate a failure-to-pay penalty for reasonable cause.
The Tax Code authorizes the IRS to impose specific penalties on certain entities that fail to file returns. These include a partnership that is required to file a partnership return but does not timely do so, or files a return that does not contain the required information; and an S corporation that is required to file its information return but does not timely do so, or files a return that does not contain the required information, and certain persons with certain interests or stock in a foreign partnership or corporation, among other entities.
Penalties are one of the most complex areas in the Tax Code. If you have any questions about penalties, do not hesitate to contact our office.
Wednesday, February 3rd, 2016
Our M&J Mentor-Mentee participants had a fun night of beer, basketball and MARTA at the Hawks vs. Mavericks game. The Hawks even pulled out a big W, with a score of 112 to 97!
Thursday, January 28th, 2016
M&J enjoyed meeting the bright and excited students at Auburn University’s career fair last night. Thanks to everyone who stopped by our booth!
Tuesday, January 26th, 2016
Jennifer Johnson – Staff I
Name and School: My name is Jennifer Johnson, and I graduated from the University of Tennessee at Chattanooga.
Hometown: I was born and raised in Cleveland, TN, a city about 30 miles north of Chattanooga.
If your life was a sitcom, what would your theme song be? “How Do You Like Me Now?!” by Toby Keith
What is the last show you binge watched? The last show I binge watched was American Horror Story: Freak Show. I have just begun to binge watch Making a Murderer.
If you won the lottery tomorrow, what would be the first thing you would buy? If I won the lottery tomorrow, the first thing I would buy would be a big farm with no neighbors and a house on the lake (and a boat to go with it)!
Matt Orr – Intern
Name and School: My name is Matthew Orr and I’m a senior at Georgia Southern University.
Hometown: Peachtree Corners, GA.
What would your last meal be? My last meal would be my mom’s homemade enchiladas.
What is your ideal vacation? My ideal vacation would be a week up in the mountains in a cabin with family and friends.
What is the last show you binge watched? The last show I binge watched was Making a Murderer on Netflix.
Cameron Williams – Intern
Name and School: My name is Cameron Williams and I am a senior at Georgia Southern University.
What would your last meal be? If I had to choose, my last meal, it would be filet mignon, blackened shrimp, salad, and a twice baked potato.
If you won the lottery tomorrow, what would be the first thing you would buy? If I won the lottery, the first thing I would purchase would be a piece of property, because it is a secure investment, and I enjoy the outdoors.
What is your ideal vacation? My ideal vacation would be a trip to Montana, Big Sky country, because the terrain there is beautiful, and the opportunities to enjoy the outdoors are endless.
Allie Pegues – Intern
Name and School: My name is Allie Pegues and I am a senior at Auburn University.
Hometown: Opelika, AL
What is the last show you binge watched? Friends
If you could choose one superpower, what would it be? I want to have the ability to fly.
If you won the lottery tomorrow, what would be the first thing you would buy? I would buy plane tickets and travel to as many countries as possible, beginning with Ireland.
Natasha Heenie – Intern
Name and School: My name is Natasha Heenie and I graduated from the University of Tennessee at Chattanooga in December 2015. I am continuing to take classes to meet my credit hour goal.
If your life was a sitcom, what would your theme song be? If my life was a sitcom, my theme song would be “It’s the End of the World as We Know It” by R.E.M.
What is the last show you binge watched? The last show I binged on Netflix was Scandal.
If you could choose one superpower, what would it be? If I could choose any superpower, I would choose the ability to teleport!
Ralls Pennington – Staff I
Name and School: My name is Ralls Pennington and I graduated from Birmingham-Southern College.
Hometown: Gadsden, AL
What would your last meal be? If I had to choose my last meal, I would choose Vandy’s BBQ in Statesboro, GA…(BBQ plate/double stew).
What is your ideal vacation? My ideal vacation would consist of a hunting trip out west with a group of close friends.
If you won the lottery tomorrow, what would be the first thing you would buy? If I won the lottery tomorrow, the first thing I would do is buy a house in the mountains.
Sarah Shiver – Intern
Name and School: My name is Sarah Shiver and I graduated with my Bachelor’s degree in Accounting, and I am currently pursuing my Master’s degree at Valdosta State University.
Hometown: I am originally from Cordele, Georgia.
What would your last meal be? A grilled chicken sandwich with waffle fries from Chick-fil-A.
If you could choose one superpower, what would it be? I would want the power of multiplicity that way I could be in more than one place at a time and get twice as much accomplished.
What is your ideal vacation? A scenic Alaskan cruise to enjoy the views of wildlife, towering mountains, and massive glaciers.
Garrett Marlowe – Intern
Name and School: My name is Garrett Marlowe and I am currently a Senior at the University of Central Florida (UCF).
Hometown: I am from Merritt Island, FL.
What is your ideal vacation? My ideal vacation is going anywhere with friends or family and experiencing something new.
What would your last meal be? If I had a last meal, it would be anything from Arthur Bryant’s BBQ from Kansas City.
If you won the lottery tomorrow, what would be the first thing you would buy? If I won the lottery tomorrow, the first thing I would buy would be a C7 Corvette.
Elizabeth (Liz) Stultz – Administrative Assistant
Name and title: Elizabeth (Liz) Stultz
Hometown: Kennesaw, GA
What is the last show you binge watched? Bletchley Circle
What would your last meal be? chocolate croissant
What is your ideal vacation? At a National Park, hiking
Jacqualyn McGlaughlin – Administrative Assistant
Name and title: Jacqualyn McGlaughlin
Hometown: East Islip, NY
What is your ideal vacation? Backpacking through Europe.
What is the last show you binge watched? Arrow.
If you won the lottery tomorrow, what would be the first thing you would buy? A jet.
James Langston – Intern
Name and School: My name is James Langston and I recently graduated from Kennesaw State University.
Hometown: I was born and raised in Albany, Ga.
What is the last show you binge watched? The last show that I binge watched was Game of Thrones.
If you could choose one superpower, what would it be? If I could have one superpower, it would definitely be the ability to fly.
If you won the lottery tomorrow, what would be the first thing you would buy? If I won the lottery tomorrow, the first thing I would buy would be a plane ticket for my first trip out of the country, preferably Ireland.
Tuesday, January 19th, 2016
Our Atlanta office had a great time participating in an Adopt-a-Soldier project. For several weeks they collected full-sized toiletry items, blankets, stationary, hard candies, first aid kits, magazines and a few other comforts of home that they may be missing, and they were packaged up and sent overseas. Atlanta also made paracord survival bracelets with notes of encouragement to send to the soldiers as a reminder of the support from home and also provide a handy tool.
The office made a total of 126 bracelets and with the items donated and monetary donations they raised over $600 and made 22 boxes!
Monday, January 18th, 2016
Wednesday, January 6th, 2016
After years of routine temporary extensions, Congress has made permanent a number of previously temporary tax breaks for individuals and businesses as well as extending others. The Protecting Americans from Tax Hikes Act of 2015 (PATH Act), signed into law by President Obama in December, opens the door to new planning opportunities.
Permanent extensions for individuals
Incentives for individuals extended permanently, and in some cases modified, by the PATH Act include:
- American Opportunity Tax Credit
- Deduction for certain expenses of elementary and secondary school teachers
- Parity for exclusion from income for employer-provided mass transit and parking benefits
- Deduction for state and local sales taxes
- Reduced earnings threshold for additional child tax credit
- Modification of the earned income tax credit
- Tax-free distributions from individual retirement plans for charitable purposes for individuals age 70 ½ and older
- Special rule for qualified conservation contributions
For some of the incentives, the modifications are significant. For example, the deduction for qualified expenses of elementary and secondary school teachers has been modified to include professional development expenses. Please contact our office for more details.
Permanent extensions for businesses
Friday, January 1st, 2016
Wednesday, December 30th, 2015
The Macon Office sponsored 68 residents of the Eastview Nursing Home for Christmas this year. Many residents either do not have family close by, or have any family at all to celebrate the Holidays. The facility provided “wish lists” from each resident, and through those wish lists, Mauldin & Jenkins was able to help make the holidays a little more special. Wish lists included items such as nightgowns, pajamas, slippers, books, clothing, accessories, lotions, snacks and other small items.
Over a dozen M&J employees shopped for items and those unable to shop, donated money to ensure each resident was provided with a gift from their wish list. Through the generosity of the partners and staff, we were able to brighten the Christmas for the residents of Eastview Nursing Home!
Additionally, the Macon Office has started Dress Down Friday. For a $5 donation, partners and staff can wear jeans on Friday if they are in the office and not meeting with clients. The funds collected will be used to cover the cost of providing meals periodically to the Ronald McDonald House and for other community service activities.
Thursday, December 17th, 2015
Our Bradenton office pulled together a great team of folks to paint an entire house, lay shell, spread mulch and even helped with the foundation of the next Habitat for Humanity project! Thanks so much to our great team pictured below: Ashley Reese, Ali Geiger and Steve Parent plus our family/friends, Lauren Parent, Kristi Wickersham, Dana Tisdale, Zack Walker, Brittany Goodman and Aaron Reese.