The IRS can impose hefty penalties for a number of reasons when it comes to owing taxes. The most common penalties are for late filing, late payment and failure to pay estimated tax payment, the largest of the 3 normally being late filing and late payment. Additionally, until you pay the full balance you owe, additional penalties accrue daily similar to interest which also accrues.
Many people who owe taxes know how quickly their tax debt can grow out of control if not handled properly. We at Keystone National Tax are highly experienced with the steps necessary to prevent and reduce penalty assessments. Experience in preventing, reducing and removing penalties will yield the best results. Do not make the attempt alone. If your attempt fails, you may not have another chance to request the relief for the same issue. It is extremely important to have experienced representation that knows the guidelines and rules the IRS must follow when evaluating such a request. If you have no ammunition in a debate, you will likely lose. Request a free consultation today.
Do not wait for your debt to grow out of control. As the saying goes, and as much of it applies with tax debt, "another day, another dollar". Prevention and reduction of penalties prior to them being imposed is more practical and more cost effective than waiting until your financial house is burning down. Taking action to address the issue sooner than later weighs better in the eyes of the IRS as well. They consider many factors when deciding whether to forgive penalties that have been assessed.
Generally, relief from penalties falls into four separate categories:
· Reasonable cause
· Statutory exceptions
· Administrative waivers
· Correction of IRS error
Relief from penalties due to reasonable cause is granted when a taxpayer can show that the late filing or non-payment of tax was due to an event outside of their control and not due to willful neglect.
In some circumstances, depending on your history with the IRS, even if you think it may be a negative history, penalties can still be forgiven or reduced. This is where the other 3 categories above may be useful. Sometimes any help goes a long way.
Even if you feel that your tax burden will keep climbing and there is no way to reduce it, contact us for a free consultation. You don't know your options until you get an experienced tax representative involved. The representatives at our firm have submitted countless numbers of these requests, among securing countless other solutions.