Reduction of IRS Penalties

Types of IRS Penalties and Interest

The Internal Revenue Code imposes many different kinds of penalties, ranging from civil fines to imprisonment for criminal tax evasion. If you do not file your return and pay your tax by the due date, you may have to pay a penalty…read more

How to Reduce or Eliminate IRS Penalties and Interest

Fortunately, there are several relief provisions that can help eliminate or otherwise reduce penalties that have been assessed. Unfortunately, these provisions are not automatic and the relevant standards are often difficult to meet.  However, you can obtain relief where … read more

Six Main Reasons the IRS will Abate Penalties

There are six main reasons the IRS will abate penalties:

  • Death or serious illness of the taxpayer or family member
  • Unavoidable absence
  • Destruction by fire or other casualty of taxpayer’s business or business records
  • Inability to determine taxes due for reasons beyond the taxpayer’s control
  • Taxpayers ability to make deposits or pay taxes has been materially impaired by civil disturbances
  • Taxpayer lacks the funds to deposit or pay taxes despite the exercise of ordinary business care and prudence

Most Common IRS Penalties

The most common penalties taxpayers receive are for failing to pay estimated tax payments, filing taxes late or paying taxes late.

  • Failing to pay estimated tax payments – If you do not pay enough through withholding or estimated tax payments, you may have to pay a penalty … read more
  • Filing taxes late – If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty … read more
  • Paying taxes late – You will have to pay a failure-to-pay penalty of ½ of 1 percent (0.5 percent) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid … read more

Other IRS Penalties

There are numerous other penalties that the IRS can assess. The two most common accuracy related penalties are the “substantial understatement” penalty and negligence … read more

How We Can Help You

Call us today for help to solve your IRS penalty problems.  We can help you to determine what your penalties may be and provide knowledgeable, professional assistance in helping you to reduce your taxes owed, penalties and interest.