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.
Robert V. Boeshaar Attorney at Law, LL.M.,PLLC
Latest posts by Robert V. Boeshaar Attorney at Law, LL.M.,PLLC (see all)
- How Can I Tell if My Business is in Tax Trouble? - September 5, 2024
Robert V. Boeshaar Attorney at Law, LL.M.,PLLC
Latest posts by Robert V. Boeshaar Attorney at Law, LL.M.,PLLC (see all)
- How Can I Tell if My Business is in Tax Trouble? - September 5, 2024