The IRS may have imposed one or more of the following penalties on you or your business: Failure to File Penalty, Late Payment Penalty, The Penalty for Underpaying Estimated Taxes, The Substantial Understatement Penalty, Penalty for Negligence and Intentional Disregard, Estimated Tax Penalties Introduction and Penalty Relief, Failure To File or Failure To Pay Penalties.
IRS TAX PENALTIES, as set out in the IRS Code, are imposed to "enhance" voluntary compliance. There are over one hundred-forty separate IRS tax penalty provisions.
The most common IRS Civil Law Penalties are:
1. The accuracy related penalties; 2. The IRS penalty for failure to timely file a return; and, 3. The IRS penalty for failure to timely pay a tax, and the frivolous tax return penalties.
So many taxpayers are struggling at this moment in time and the addition of IRS penalties and interest to an already delinquent tax debt may result in: federal tax liens or an IRS levy on your bank account, paycheck, seizure of assets, high fines and garnishment of wages. Your personal property, business, or financial freedom may be at risk. Regardless of the circumstances, however, the tax resolution team at Flat Fee Tax Service, Inc. can help you get a Fresh Start through an IRS Penalty Abatement.
An IRS Penalty Abatement sent as a simple letter to the IRS requesting that the IRS Penalties and Interest be abated (waived/forgiven) will not be sufficient. The truth is that the IRS receives millions of these simple IRS Penalty Abatement request letters every year and the great majority will be summarily rejected.
The IRS receives so many sub-par abatement requests for IRS Tax Relief, that a Penalty Abatement that is done with thought and thoroughness will stand out in a positive way.
The IRS will add a penalty to your delinquent tax debt to punish you, the taxpayer, for failing to comply and to send a message to other taxpayers that compliance will be strictly enforced. If neither of these purposes are furthered by the imposition of an IRS tax penalty, the IRS should not assess it. Furthermore, for most types of IRS tax penalties, if the taxpayer has Reasonable Cause for his failure to comply, the IRS tax penalty should not be assessed.
An IRS Penalty Can Be Expensive and Burdensome. As an example:
The fraudulent tax return penalty is set out in IRC Section 6663. This IRS penalty is "75%" of the portion of the underpayment [of tax] which is attributable to fraud. The fraudulent failure to file tax return penalty is set out in IRC Section 6651(f). This tax penalty also has a maximum 75% rate. The accuracy-related tax penalty is set out in IRC Section 6662. This tax penalty is 20% of the amount of the portion of the understatement of tax attributable to the conduct being penalized. Accuracy tax penalties include the "negligence or disregard of rules or regulations" penalty, the "substantial understatement of income tax" penalty, the penalty for "substantial valuation misstatement," the penalty for "substantial overstatement of pension liabilities," and the penalty for "substantial valuation misstatement in connection with gift tax or estate tax".
Another example of the Severity of an IRS Penalty:
The IRS tax penalty for failure to timely file an IRS tax return is set out in IRC Section 6651(a). This IRS tax penalty is equal to 5% of the amount required to be shown on the tax return, per month up to a max of 25% of the amount required to be shown on the tax return.
Do You Have What the IRS Would Call a Reasonable Cause?
The following information is excerpted directly from the Internal Revenue Manual, IRM 120.1. Reasonable Cause is based on all the facts and circumstances in each situation and allows the Internal Revenue Service to provide Tax Relief from an IRS Penalty that would otherwise be assessed. Reasonable Cause Tax Relief is generally granted when the taxpayer exercises ordinary business care and prudence in determining their tax obligations but is unable to comply with those tax obligations.
In the interest of equitable treatment of the taxpayer and effective tax administration, the non-assertion or abatement of civil penalties based on Reasonable Cause or other Tax Relief provisions provided in this IRM must be made in a consistent manner and should conform with the considerations specified in the Internal Revenue Code (IRC), Regulations (U.S Treasury Regulations), Policy Statements, and Part 120.1. The IRS Manual goes on to say that ANY REASON will be accepted as Reasonable Cause if it can be shown that the taxpayer exercised ordinary business care and prudence and, despite that, was still not able to comply with their tax obligations.
An IRS Penalty, once put into effect, can be quite difficult or impossible for a novice to settle alone. For this reason, many individual taxpayers and business owners have consulted our experienced IRS tax relief team to create a settlement proposal and negotiate with the IRS on their behalf. In doing so, they have saved themselves not only money and time, but also needless emotional strain.
Reasonable Cause is a subjective matter and the only way to definitively determine whether or not a failure to comply was willful or a result of extenuating circumstances is for the IRS to conduct a thorough investigation of all the facts and circumstances giving rise to the failure.
This investigation is triggered by a correctly filed IRS Penalty Abatement Request.
Be aware, if you submit a Penalty Abatement petition and it is denied, you cannot make a request on the same grounds again. An IRS Penalty Abatement request should be prepared by an experienced IRS tax professional at your side.
No matter how well you state your case, the IRS Appeals Officer assigned to your IRS Penalty Abatement request will have some hard questions for you. The IRS Revenue Officer probably will look at your history of paying your IRS tax. The IRS will ask, "Is this just another attempt to get out of paying?" That is a question that needs to be overcome.
Our affordable IRS tax relief team is headed a skilled team of tax attorneys who have years of experience in helping struggling taxpayers resolve their IRS problem in a positive way. What truly distinguishes us, from other tax resolution companies, is the superior service we offer all of our clients. Our primary objective is to protect our clients’ best interests and obtain the fresh start that they deserve. Unfortunately, many struggling taxpayers have been charged exorbitant fees for IRS help and have even been denied assistance because of an inability to pay them. We feel it’s our job, at Flat Fee Tax Service, Inc., to make our clients’ lives simpler, not more difficult. During our consultation with you, we will take the time to fully educate you about your personal tax circumstances, the affordable and thorough services we can offer you and what choices you have so that you can make an educated decision.
Your personal, financial, and business lives can all be greatly affected by the addition of IRS penalties and interest to your delinquent tax debt. No matter how severe your situation may seem, it can be improved. Our experienced IRS specialists are here to help you negotiate an IRS penalty abatement and set you on the road to financial freedom. You can receive relief from your IRS tax debt and receive a fresh start.