If you are found by the IRS to owe back taxes, the IRS will calculate penalties and interest on the amount due. These can cause a small delinquent tax debt to compound into an unmanageable amount within a very short period of time. Of the over 140 tax penalties available to the IRS, the most commonly used are failure to file, failure to pay, and fraud. Penalties typically can make up to 25% of the total amount owed, but could be much more depending on the type of penalty assessed and the additional interest that will also be charged.
Don’t pay IRS penalties and interest unnecessarily. Even if the IRS is justified in imposing them, penalties can be “abated” – completely or partially removed. The IRS has a broad definition of abatement, with the requirement that you meet one of these three basic reasons:
- Reasonable cause
- Administrative waivers
- A mistake by the IRS
While “reasonable cause” will depend on your particular situation, usually you will qualify if there were factors out of your control involved in your not paying your tax debt. For example:
- Major illness
- Destruction or theft of your records
- Death in the family
- Disaster (such as a hurricane, earthquake, flood, etc.)
- Lengthy unemployment
- Divorce or other major life disruption
The expert tax professionals at US Tax Shield are very experienced with penalty abatement. We can save you a substantial amount of money and get your tax debt resolved quickly by helping you reduce your IRS penalties and interest amount.
You Have a Right to Tax Representation
If you have been contacted by the IRS or your state’s Department of Taxation, or have received tax liens, levies, or notices of IRS intention to do so, call 877-829-3535 today for your free 15 minute tax analysis and consultation.