WARNING, TAXPAYER BEWARE! The IRS can assess over 140 different types of penalties against you!
PENALTY ABATEMENT involves the reduction or elimination of some or all of the penalties that the IRS or State Taxing Authorities have added to your tax liability. Some of the most common penalties include:
Failure to File – This IRS penalty accrues at 5% per month x the tax due, starting from the due date of the return and runs until the return is filed or the penalty = 25%, whichever comes first.
Failure to Pay – This IRS penalty accrues at ½% per month x the tax due, starting from the due date of the return and runs until the tax is paid or the penalty = 25%, whichever comes first.
Accuracy Related – This IRS penalty is typically 20% of the unpaid tax that generally arises in connection with an audit of your return.
To add insult to injury, the IRS can assess multiple penalties against you, as they deem appropriate. For example, IRS found “unreported” income that was accidentally left off your return; they assess the Accuracy Related penalty and the Failure to Pay penalty.
The unpaid tax and penalties also accrue interest charges and before you realize it; your small tax problem has become insurmountable, seemingly overnight.
Let US Tax Solutions Rescue You! We Can Provide Relief!
IRS will consider abatement of penalties for failure to file, failure to pay and many of their other penalties, if the taxpayer had a “reasonable cause”.
There is also a first time abatement policy that can benefit many compliant taxpayers. This program is not promoted by the IRS, but it is available.
There are 9 major categories under which you can request penalty abatement. In most cases, IRS penalties are never challenged by the taxpayer. In many of those cases, the penalties were imposed improperly by the IRS. Why would you pay without calling us first! Let us help!