Removing Tax Penalties and Interest
For many, the tax owed is not the problem, but rather, it’s the penalties and interest that continue to accrue daily. IRS penalties and interest can cause a seemingly insignificant tax liability to soar out of control.
Most people wait too long to address the issue and find themselves in a hole that is too big to dig themselves out of. When this happens, the best thing to do is to hire a tax attorney to assist with what’s called “an abatement of penalties.” An abatement of penalties, requests the IRS to eliminate certain penalties on a taxpayer’s account.
Often times, an IRS employee improperly imposes penalties on the taxpayer because they do not understand the facts and law of the case. When this occurs, it is imperative to fight the IRS.
How Do I Remove Tax Penalties?
In order for the taxpayer to be successful removing IRS penalties, it is necessary to demonstrate “reasonable cause.” Reasonable cause is based on all the facts and circumstances in your situation. Proving reasonable cause allows the IRS to provide relief from a penalty that would otherwise be assessed. Some examples that may be considered reasonable cause are the following:
- Theft or destruction of your records
- Family problems, such as divorce or death in the family
- Bad advice from a tax advisor
- Lengthy time of unemployment
- A disaster that was out of your control (Hurricane, wind storm, flooding, riot, etc.)
Because proving reasonable cause is fact intensive, being current on case law and administrative guidance is essential. A tax lawyer can provide the resources and tools to be essential in helping you develop and execute a strategy forremoving penalties.
Representation Is Essential
Todd S. Unger, Esq., LLC provides a free, no-obligation consultation to taxpayers facing tax penalties and interest and other federal tax controversy matters in both New Jersey and New York. To schedule your confidential consultation with a qualified New Jersey tax attorney, call us today at (877) 544-4743.