Tax Penalties & Trust Fund Recovery Penalty
Have You Received a Nasty Letter From the IRS?
IRS Tax Penalties
No one likes to get in trouble with the IRS. Unfortunately, if you fail to pay your taxes on time, you may be subject to penalties. The good news is that our tax law firm can help you negotiate with the IRS and reduce or eliminate your penalties.
There are three main types of IRS penalties: failure to pay, failure to file, and failure to deposit. Each type has its own set of rules and regulations. We can help you understand the rules and procedures and negotiate with the IRS on your behalf.
The first step is to contact our tax attorney. We will review your case and determine what options are available to you. We will then work with the IRS to reduce or eliminate your penalties. In some cases, we may be able to negotiate a payment plan that allows you to pay your taxes over time. In other cases, we may be able to get the IRS to waive the penalties entirely.
If you are facing IRS penalties, don’t despair. Contact our tax law firm today and see how we can help you resolve your issue.
What are the penalties assessed by the IRS on my taxes?
No one likes paying taxes, but it’s important to remember that there are consequences for failing to pay them. The IRS can assess a variety of penalties for different offenses, including failure to pay, failure to file, and failure to deposit. Depending on the severity of the offense, these penalties can range from a few hundred dollars to thousands of dollars. In some cases, the IRS may even pursue criminal charges. So if you’re thinking about skipping out on your taxes, just remember that the penalty could be much worse than simply writing a check to the government.
What are the penalties for tax mistakes?
The penalties for tax mistakes can be significant, but the good news is that the IRS offers a number of ways to help taxpayers avoid them. The most common penalty is the failure to pay, which is assessed at 0.5% of the unpaid amount per month, up to a maximum of 25%. The failure to file penalty is also assessed at 0.5% per month, but it is capped at 5% of the unpaid tax liability. The failure to deposit penalty is 10% of the unpaid tax if the deposit is more than five days late, and it increases to 15% if the taxpayer owes more than $100,000.
Finally, the accuracy-related penalty is 20% of the portion of the underpayment that is attributable to negligence or disregard of rules. By understanding these penalties, taxpayers can take steps to avoid them and keep more of their hard-earned money.
Can my tax penalties be abated?
Although the IRS imposes a number of different penalties for failure to pay, file, or deposit taxes, it is possible to have those penalties abated in certain circumstances. The most common reasons for having penalties abated are due to reasonable cause or first-time penalty abatement.
To qualify for penalty abatement, you must generally show that you took reasonable steps to comply with the tax laws but were unable to do so due to circumstances beyond your control. For first-time penalty abatement, you must generally show that you have been compliant with the tax laws for the previous three years and that the failure to pay, file, or deposit was due to a reasonable cause. Although it can be difficult to have penalties abated, it is worth seeking professional help if you believe you may be eligible.
