If you owe back taxes and/or file tax returns late, 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 fialure to deposit (for businesses). 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 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:
Late filing penalties for certain partnerships Under Revenue Procedure 84-35
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:
Destruction or theft of your records
Death in the family
Disaster (such as a hurricane, earthquake, flood, etc.)
Divorce or other major life disruption
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 888-493-8818-5440 today for your free 15 minute tax analysis and consultation.
TOTAL TAX SERVICE
4221 N. MacArthur Blvd.
Oklahoma City, OK. 73122
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