From the Wall Street Journal …
” In a U.S. economy struggling to create jobs, at least one field is booming: compliance. Hefty fines and other penalties have jolted companies, especially banks, into a compliance hiring spree, as governments at home and abroad tighten business laws and regulations and ramp up their enforcement activity. “
This is because government is turning to penalties as a likely source of increased revenues. And they’re coming at us from all directions – IRS, other federal agencies, states and various state agencies. Where it used to make some sense to pay the penalties when caught instead of incurring the cost to comply, that is rapidly changing.
Finding their previous approaches to raise taxes inadequate to fund their needs, governments across the nation are finding penalties a richer source of new funding. The IRS, which was attempting it increase funding by policing the tax preparation profession and going after schedule C filers and S corps have lately been turning their attention to penalties for mundane activities as a more lucrative funding source.
Watch out or you may get hammered with a completely unexpected and very hefty fine out of the clear blue sky … $55,000 on a W-2 issues, hundreds of thousands of dollars on a foreign asset filing irregularity, and penalties of $10.000 is not uncommon for non or late filing.
However, we have found that there is generally a legal way around these regulatory issues that business are being penalized to death over. We have been finding satisfactory solutions for clients on any number of non-tax regulations and potential penalties. It is a good idea to be proactive. Take action before they rope you in. Otherwise many of your options will fade away.