Are you interested in requesting Penalty Relief from the IRS?
Our Firm has been negotiating penalty abatements with the IRS for years. To find how we can help you, call 1-800-880-0TAX.
Why should you request Penalty Relief?
IRS debts are generally much larger than simply the unpaid tax. This is because the IRS assesses penalties and interest on the un-paid tax that is due. The addition of penalties and interest to the unpaid tax causes the outstanding debt to grow at increasing rate over time. In other words, there is a snowball effect. If a penalty abatement request is approved by the IRS, the outstanding debt will be reduced by the amount the penalty abatement plus the portion of the interest that accrued on the unpaid penalty. Interest on the underpaid tax will generally not be abated by the IRS.
When will the IRS agree to abate penalties?
The IRS generally requires a Taxpayer to show that Reasonable Cause exists before agreeing to abate penalties. What is Reasonable Cause? There is no precise definition and many events can constitute reasonable cause. Factors the IRS will consider include, are not limited to, death, divorce, disaster, destruction of records, medical problems, bad professional advise, reliance upon erroneous IRS advise, as well as numerous other issues. When requesting a penalty abatement, it is extremely important to support the request with a summary of facts, law, documentation, and/or affidavits.
Why should you retain our Firm?
We strive to develop and support a penalty abatement request that can be approved at the lowest level of the review process. The error that many tax professionals make with respect to requesting penalty relief is sending out a simple poorly supported request to abate penalties in hopes that the IRS will have mercy on the Taxpayer. Unfortunately, the IRS will simply review the request to determine whether the Taxpayer provided enough information to meet the reasonable cause standard. Without adequate support, the IRS will generally rule that the Taxpayer is not entitled to penalty relief and issue a rejection letter. If the Taxpayer still wants to pursue penalty relief, the Taxpayer will be forced to file an appeal with the IRS Office of Appeals. Accordingly, it is extremely import to win at the lowest level to avoid having to overcome an un-favorable ruling at the lowest level. Our Firm has been negotiating penalty abatements with the IRS for years. To find how we can help you, call 1-800-880-0TAX.