In the eyes of the IRS even an honest mistake can be costly. Those who fill out their taxes incorrectly or accidently underreport their income can be fined considerable amounts. For a small business owner, any inaccuracies can even be more costly…
“Business owner Orman Wilson of Houston, proprietor of 19 incredibly successful coin-operated car washes around the metropolitan area, tried to set up a pension plan for himself and his six employees. Due to the fact the plan was set up incorrectly by an certified public accountant and a number of advisors, Wilson was given a tax bill of $250,000, plus special penalties totaling $1.2 million.”
See complete article, Beware the IRS, Small Business Owners
The lesson here is simple, make sure you contract with an experienced firm. At Palma Financial Services we have set up nearly 100 complex pension plans over the last 13 years. If you have any questions regarding IRS compliance for your small business please do not hesitate to give us a call.