Individual Tax: Penalties

Penalties: Contents


Interest and penalties accrue in connection with most tax debt and can end up being an overwhelming burden on you that seems insurmountable.  Even if you negotiate with the IRS or state tax authorities on your own, the interest and penalties will continue to accrue.  You may even find yourself in a situation where the interest and penalties far exceed the original amount you owed.

Penalty Reduction

Our team of tax professionals understands how to deal with the tax authorities and help prepare your paperwork to reduce, or even eliminate, the penalties and interest in connection with tax debt.  In certain situations, and with proper representation, the IRS may forgive certain penalties imposed for late filing, late payment, or other non-compliance.  Our team evaluates your situation to determine whether your situation qualifies for certain penalty abatement programs and negotiates on your behalf to qualify you for these programs.  With our help, we may be able to convince the IRS that your situation qualifies for a reduction in penalties due to (i) reliance on a tax professional, (ii) ignorance of tax law, (iii) medical illness of you or a family member, (iv) natural disasters, (v) significant financial hardship, and (vi) death in the family.

First Time Penalty Abatement

There is also a program for “First Time Penalty Abatement”, in which the IRS will eliminate some or all penalties if you have paid and filed your taxes on time for the past three years but still owe back taxes.  Our team of tax experts understands what situations will qualify for these programs and can help you to file the necessary paperwork.

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