How to Get Penalties Removed From Your IRS Tax Debt

How to Get Penalties Removed From Your IRS Tax Debt

Posted by on Feb 1, 2016 in IRS, Paying Taxes, Tax Debt |

E very year on April 15, thousands of Americans end up owing additional tax money to the IRS. While most Americans try to pay their taxes each year, uncontrollable circumstances sometimes make it impossible to pay your tax debt on time. If you lost your job or faced a medical crisis and now you can’t afford to pay your tax bill, you aren’t alone. The IRS estimates that nearly 17% of taxes that are owed this year will not be paid at all. If you have faced a lengthy battle to get caught up on your tax debt or you owe a large chunk of money, you will accrue a massive amount of interest and penalties in a short window of time. The good news is that the IRS offers a program for penalty abatement to reduce the overall amount you owe and make it a little easier to dig your way out of tax debt once and for all.

e35273_27e33f5db82641138929959e8687a005” If you owe back taxes and have a steep amount of penalties that have accrued over time, contact a tax attorney. If you can prove that you didn’t pay your tax bill because of extenuating circumstances, your attorney will be able to negotiate to have your penalties reduced or even erased all together.

What qualifies as extenuating circumstances that make you eligible for penalty abatement? There are actually quite a few things that could make you a good candidate. Did you have a loved one die recently? Did you face significant financial challenges as a result of that death? If you can provide proof with a death certificate and financial documents that show your losses, you will likely be eligible for penalty abatement.

unpaid-taxesAnother reason that your IRS penalties may be canceled is if you were physically unable to pay your debt. This could include being in prison or in a rehab facility where you were not able to file your taxes on time. Again, you would need to have a lot of supporting evidence to prove your story. If you have doctor’s slips, hospital bills or even documentation from a court then you would need to be able to submit this to the government as you try to have your penalties removed.

You never really know when you might face a natural disaster. This could include a flood or even a fire. When situations like this occur it may be completely impossible for you to file your taxes on time. You will want to contact the government as soon as possible and ask for an extension. Also, discuss the penalties that you might be facing. Determine what you will need to do in order to have these removed when you finally do have an opportunity to file your taxes.

Believe it or not, you might encounter a situation where you have received bad information from someone that works for the IRS. If you did not file your taxes on time because of something that an IRS employee told you then you will most likely be able to have your penalties removed. Be sure that you have documentation related to what you were told. If you have the date, time and name of the person that you spoke to then this will be very helpful as you try to prove your case. If you received anything in writing from the IRS giving you an extension then you should provide this as well.

If you are facing a mountain of tax debt including penalties and interest, contact a tax attorney today and ask for additional information on penalty abatement programs.

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What to Do When You Receive a Collections Notice From the IRS

What to Do When You Receive a Collections Notice From the IRS

Posted by on Feb 1, 2016 in Collections Notice, IRS, Paying Taxes |

P aying taxes is just a part of life in the United States and while most Americans grumble about it from time to time, it’s still mandatory. If you get behind on your tax payments, you could end up facing serious collections action and dealing with the IRS is never pleasant. If you receive a collections notice from the IRS, don’t ignore it or put off dealing with it until tomorrow. You need to take action immediately to prevent further legal action and to avoid bank levies and property liens.

Before you can work to resolve your tax problem, you need to know what you’re up against. Once you have read the letter and determined that you really do have IRS tax problems, contact the accountant who helped you file your taxes. Set up a meeting to discuss the issue with them. They should have all of your information in a file but it would still be a good idea to take all of your paperwork with you, along with the letter from the IRS. Hopefully the accountant will be able to quickly resolve the issue with the IRS and negotiate a payment plan to help you get caught up on the back taxes you owe.

150122071202-dirty-dozen-irs-scam-1-780x439If you didn’t use an accountant to file your taxes, call the number that is listed on the top of the letter that you received. You will want to document the entire conversation. This means that you should write down the date and time that you called along with the agent’s name and agent number. Discuss the letter with the agent and write down what they tell you.

In the end, if you are not able to fix the IRS tax problem with the help of your accountant, seek help from a qualified tax attorney. A reputable tax defense attorney will be able to explain your options and help you negotiate an installment plan or an offer in compromise that will stop all collections activity against you. If you need to file amended tax returns or go through audit reconsideration, the tax attorney can stop all legal proceedings against you to give you time to resolve the problem without accruing additional interest on the debt you owe.

743634_7a88ec17bc5e46cfb97d158b435572bcIn many cases, tax attorneys can negotiate your tax debt with the IRS to lower the overall amount you owe. By petitioning for penalty abatement or proving that you couldn’t pay the tax debt in a timely fashion due to uncontrollable circumstances, you could end up saving hundreds or even thousands of dollars on the total amount of money you have to pay to the IRS.

Receiving a collections letter from the IRS is never a pleasant experience, but there is no need to panic if you have a qualified and experienced tax attorney on your side. Whether you owe a small amount of back taxes or you are facing criminal prosecution for tax evasion, tax attorneys are skilled to assist at every level or IRS tax defense.

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