PENALTIES AND INTEREST

If the IRS determines you liable for a back tax debt, they will assess penalties and interest on the outstanding balance. This can cause your original debt to explode to an unwieldy amount over a very short duration of time. The most commonly used of the broad set of penalties that the IRS has at its disposal are for failure to file, failure to pay, and fraud. These penalties can generally grow to as high as 25 percent of the total balance owed, but depending on the type of penalty assessed and the inclusion of any additional interest, it is certainly possible that they become even larger.

Why pay IRS penalties needlessly? The Internal Revenue guidelines are constituted so as to allow for the abatement (complete or partial elimination) of penalties. The IRS delineates penalty abatement in a general context, requiring only that you satisfy one the following fundamental criteria:

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Reasonable cause

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Statutory exceptions

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Administrative waivers

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Correction of Service error

Reasonable cause will ultimately be determined by the unique details of your situation. However, you will generally qualify for penalty abatement if you can show that you exercised ordinary business care and prudence, but due to circumstances beyond your control, you were unable to comply with your tax obligation. The following instances are typically considered reasonable cause for noncompliance:

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Serious illness

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Theft or destruction of your records

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Death in your immediate family

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Casualty or disaster

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Prolonged unemployment

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Divorce or other substantial disruption of life

Tax Muscle attorneys are highly skilled and experienced in the negotiation of IRS penalty abatements. We can facilitate a beneficial tax resolution for you by reducing or completely eliminating your IRS penalties, generating significant tax savings in the process.

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Every Taxpayer Has A Right To Tax Representation

If you have been contacted by the IRS or State Taxing Agency, or are facing enforced collection action or the threat of such action, then let Tax Muscle do the heavy lifting and resolve your tax problem for good. Call 855.829.6875 today for your free 15 minute tax debt consultation.