Incurring IRS penalties can be costly. Although there are over 150 different IRS civil penalties ranging in severity, the three most common types issued are: On average, over 90% of the annual penalties issued by the IRS come from these three penalties. Fortunately, the Internal Revenue Service does provide a process for penalty reduction requests…
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Incurring IRS penalties can be very costly; it’s worse than just having an added tax placed against your tax balance because your tax balance can continue to grow substantially with penalties. As time passes, additional penalties and interest will pile up, making resolving it even more challenging. The IRS recognizes this and is willing to…
Continue reading ›Surprisingly not many taxpayers either know about the IRS’s penalty forgiveness under Penalty Abatement (“PA”) and First Time Abatement (“FTA”) or take advantage of them if their tax situation warrants it. The IRS introduced this penalty waiver over 20 years ago, yet it is often overlooked. Tax penalties can significantly increase the total balance owed,…
Continue reading ›The IRS can assess a penalty on individual taxpayers who fail to file, fail to pay, or both. The failure-to-file penalty is greater than the failure-to-pay penalty. If someone is unable to pay all the taxes he owes, he is better off filing on time and paying as much as he can. The IRS will…
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