Are you willing to pay what you owe the IRS, but you’re frustrated about having to pay the additional penalties assessed by the IRS? You’re not alone. If you have penalties on your account, we can can compose and work out an agreement to have them removed.

What can you do about penalty abatement?
If the taxpayer can prove reasonable cause, which the government defines, the IRS will relax on the penalties in the taxpayer’s account and the interest associated with them. The taxpayer must prove their reasonable cause of not being able to file or pay their taxes on time. A few examples of hardships that are accepted by the IRS are:

1. Death
2. Illness in your immediate family or yourself
3. Being incarcerated
4. Unemployment for a long period of time
5. Divorce or other family issues that you can prove to the IRS
6. Poor advice from a tax advisor
7. Natural disaster
8. Business files being destroyed

The list above is not a complete list of hardships that IRS will accept, there are more. If you can prove that one or more of these situations are a reason for not being able to file or pay taxes, the IRS may terminate penalties associated with your account. Penalties can make up 25-30% of a taxpayer’s debt. Have one or more penalties removed can allow a taxpayer to financially breathe. If you find that you have already paid your taxes but still want to look into having your penalties removed the IRS will grant you a refund of the penalties and interest paid.

There are four penalties that can frequent a taxpayer’s account:

1. 1. Failure to File Penalty – The formula to calculate this is from the date of your tax return, this includes extensions, to when the taxpayer actually filed.
2. Failure to Pay Penalty – The is assessed based on the money that the taxpayer owes the IRS
3. Failure to Pre-Pay Tax Penalty – If the taxpayer does not make their tax payments that they have agreed to make to the IRS this penalty is assessed.
4. Failure to Deposit Penalty – This penalty is common for businesses for not submitting their payroll deposits on time.

These are not the only penalties that can be assessed on a taxpayer’s account but they are the most common. A penalty abatement could reduce your tax debt, if you qualify. Don’t hesitate – contact us today to learn more.

When you work with our team, you trust your situation to former IRS Tax Attorneys, CPAs, and Tax Professionals. Our goal is to help you keep what’s yours, recover your funds, and protect your future. Have no fear, for we are passionate about helping you win!