IRS Penalty Abatement for San Antonio Taxpayers
What is IRS penalty abatement? IRS Penalty Abatement also known as tax penalty abatement, is the process of persuading the IRS to reduce or eliminate penalties imposed upon a taxpayer in connection with the taxpayer’s tax return.
Tax penalties appear throughout the Internal Revenue Code. There are more than 140 IRS tax penalties that may be imposed on a taxpayer, and they can be grouped broadly as follows:
- Accuracy-related penalties
- Fraud-related penalties
- Underpayment-related penalties
- Late filing or failure to file penalties
- Combined penalties.
The failure to file a tax return leads to one of the harshest of all tax penalties. Regardless of whether you can afford to pay your taxes you should always file on time. Some people have not filed several years worth of tax returns. The “failure to file” penalty begins at 5% of the amount of tax owed the day after a tax return is due, and can reach as much as 25% of the total tax due after 5 months. Clearly, you can see where IRS penalty abatement would be needed in such a circumstance, and it can often be obtained if presented properly.
Of course, the penalties for fraud are quite severe as well, reaching up to 15% per month, with a maximum tax penalty of 75% of the amount of tax owed. Moreover, there are potential criminal ramifications in the event of fraud as well. So, here as well, the prudent taxpayer hires an experienced tax attorney with expertise in IRS penalty abatement.
Because tax penalties are cumulative, penalties may compound for a single tax return or tax year. Failure to act quickly to pay or attempt to raise valid arguments in support of reducing IRS tax penalties can lead to one or more of the following enforced collection activities:
Tax Liens— The IRS may file a public tax lien against you and or your assets, preventing you from selling assets without paying your tax, and potentially jeopardizing your loan and employment applications.
IRS Wage Garnishment — The IRS can seize your wages directly from your employer, which means if you owe IRS tax penalties and fail to take action to settle your tax problem, the IRS can notify your employer of your tax problem and order them to send your wages directly to the IRS.
IRS Summons and Seizures — The IRS can issue summons notifying you, your employer, your bank and others that the IRS intends to seize your property to pay back taxes.
Contact us for IRS Penalty Abatement
Because tax penalties may wind up costing you as much or more than the tax itself, you should seek the help of an IRS penalty abatement specialist before communicating with the IRS. Contact the IRS penalty abatement attorneys at San Antonio Pure Tax Resolution for a free consultation. (210) 526-0224