One of the most common problems we encounter is the high cost of penalties and interest that the IRS often adds on to the original tax liabilities. The IRS can impose penalties for filing your tax return or paying your taxes after the due date or even for failing to deposit estimated tax payments.
Luckily, these penalties can often be avoided. The IRS has a first time penalty abatement program under which penalties can be waived for one tax period. If you have not incurred penalties for that tax period in the previous three years.
If you do not qualify for first time penalty abatement there are other options. The IRS will waive penalties if you can establish reasonable cause for failure to file a tax return or failure to pay the taxes due. Reasonable cause can be a death in the family and natural disaster or even an inability to pay.
If you owe penalties to the IRS and would like to know whether or not you have grounds to contest these penalties, contact our office. We can help.
- How You Can Avoid Telling the IRS About Your Finances - May 15, 2023
- Yes, the IRS Really Can Show Up At Your Door - April 3, 2023
- Is That Letter You Received From the IRS Legitimate? - March 2, 2023
- How You Can Avoid Telling the IRS About Your Finances - May 15, 2023
- Yes, the IRS Really Can Show Up At Your Door - April 3, 2023
- Is That Letter You Received From the IRS Legitimate? - March 2, 2023
