Up to 40% income tax plus a 10% penalty.
Now that tax filing season is over the focus shifts to employee sponsored retirement plans like 401K’s and defined benefit pension plans are overseen by the US Dept of Labor. The sponsoring employer must file an annual information return with the Department of Labor. When an employer sponsored plan has more than 100 participants the Dept of Labor requires that audited financial statements be filed with the annual tax return. Failure to provide this documentation on a timely basis can disqualify the plan. If this should happen the result is a tax nightmare for the employer as well as the plan participants.
If your business is growing you may already have 100 employees or are quickly approaching that number. If so it is good to start planning now. If you think this applies to you or someone you know let’s have a conversation. You can reach me by telephone at 678 624 4775 or by email to Peter@TarantinoCo.com
At Tarantino & Co CPA also stands for Close Personal Attention.