Should you fail to pay your back taxes, it will result in IRS penalties and interest being assessed to your base tax debt. IRS Penalties can compound over the years and make your tax debt substantially larger than it initially was. Non-payment of an IRS tax debt can then result in even more IRS penalties and interest resulting in a tax levy (garnished wages and/or bank account), a tax lien against your real property, or even a seizure of your assets. IRS Penalties will be added for filing your tax return late, a failure to file tax returns, or for paying your due tax late.
The IRS penalty for filing late is generally 5% each month, or partial month, and can be up to 25% of the amount due on your tax return. There are some situations and circumstances in which you can have your IRS Penalties abated or eradicated either partially or in full for one tax year or multiple tax years. To submit A Penalty Abatement request to the IRS, a taxpayer must have reasonable cause that is specific for each year and must be able to explain why the penalties should be removed.
Reducing or Eliminating Delinquent Tax Debt
A taxpayer can not only rid themselves of the IRS penalties and interest, but they can dramatically reduce the tax debt through the IRS tax relief program known as an Offer in Compromise. You do not have to be destitute to qualify for a tax settlement through an Offer in Compromise.
The tax professionals at Flat Fee Tax Relief have provided valuable tax relief for more than a decade. Our team of tax relief experts will work directly with you to get you the best tax relief settlement available to you.
If there were circumstances ("reasonable cause") beyond your control that prevented you from paying your tax debt which led to the delinquency, we are able to challenge the penalties (Penalty Abatement) that have built up.
Penalty Abatement- Tax Relief from IRS Penalties falls into four separate categories:
a. Reasonable Cause - a mistake made by the taxpayer, ignorance of the law, death, serious illness, unavoidable absence, or divorce. There are many "reasonable cause" situations available to you.
b. Statutory Exceptions - simple or complex legislative tax code changes.
c. Administrative Waivers - undue hardship, fire, flood, natural disaster, bad legal/tax advice.
d. Correction of Service Error - mistakes made by the IRS.
If an Offer in Compromise is not available to you, then a Penalty Abatement could be your best tax relief option. Give our team a call today. Our consultations will only take 20 to 30 minutes of your time.