The IRS charges a variety of tax penalties to ensure taxpayers remain in compliance with tax law. Typically, the severity of tax penalties assessed depends on the violation at stake. Taxes are generally assessed by computers, that in many cases, don’t understand the circumstances that led up to the noncompliance. There are many situations where tax penalties can be removed if it can be shown there was “reasonable cause” that didn’t allow for the taxpayer to remain in compliance.
Understand your options and receive a tax consultation today. We’ll conduct a tax analysis based on your specific situation and present available solutions for consideration.
- Help you decide whether penalty abatement is a realistic option for your situation.
- Prepare a proper IRS request (supported by IRS tax code) to demonstrate the circumstances surrounding your situation.
- Submit your package to the IRS and negotiate penalty abatement on your behalf.
A. For those that have the ability to pay their tax debt in full, IRS tax penalties and interest that make up the bulk of the delinquent tax bill are often the main causes of an unmanageable tax problem. However, several IRS provisions help taxpayers get tax debt relief. The most common reasons for penalty abatement include:
- Reasonable Cause
- Correction of Service Errors
- Administrative Waivers
- Statutory Exceptions
Under reasonable cause, the IRS will thoroughly assess the initial situation that resulted in penalties. Relief will be granted on the basis of reasonable cause if the taxpayer exercised ordinary care and prudence in determining their tax obligations, but was unable to comply with those obligations.
Q. Are there other factors that might determine whether I qualify for penalty abatement?
A. As with most matters involving the IRS, your individual situation will dictate the outcome of your tax issue. The goal is to present your case with sufficient evidentiary support to give yourself the best chance of obtaining a favorable ruling from the IRS (or Court). Other factors the IRS may consider include:
- Unable to Obtain Records
- Serious Illness
- Loss of Household Provider
- Incorrect Advice from Tax Advisor
- Incorrect Advice from Service
- Natural Disasters
- Service Error
We recommend you Schedule a Consultation with us to determine how we might help to reduce or remove your IRS penalties. We do not recommend contacting the IRS on your own.
Q. What is the cost of your tax penalty abatement services?
A. Our IRS tax resolution fees are based on our flex-fee structure, and all costs are pre-approved by you when you decide to hire us. We offer payment plans, if needed, and set our fees so you do not have to worry about unexpected legal bills. There are no surprises, no add-ons. Because every situation is different, we recommend you Schedule a Tax Consultation so we can discuss your case in detail.