Penalty Abatement
IRS Penalty Abatement is a request to have a penalty assessed by the Internal Revenue Service (IRS) removed or reduced. This request may be made by a taxpayer who has received a notice from the IRS stating that they are being assessed a penalty for failure to pay taxes, filing a tax return late, or other tax-related infractions.
The IRS has specific rules for granting penalty abatement, which are outlined in Internal Revenue Code section 6404(e). This code allows the IRS to abate any penalty that is assessed if it is shown that the failure to pay the tax or meet other tax-related obligations was due to reasonable cause and not due to willful neglect.
Penalty Abatement: Understanding Your Options
When you fail to pay your taxes, the Internal Revenue Service (IRS) can impose penalties on top of the taxes owed. These penalties can be overwhelming and make it difficult to pay your taxes. Fortunately, there is a way to reduce or eliminate these penalties through penalty abatement. In this article, we will explain what penalty abatement is, how it works, and how the Carr Law Firm can help you with your tax problems.
What is Penalty Abatement?
Penalty abatement is the process of reducing or eliminating the penalties that the IRS has imposed on a taxpayer for failing to pay their taxes on time. The IRS imposes penalties on taxpayers who do not pay their taxes on time or do not file their tax returns by the deadline. These penalties can be substantial and can make it even more difficult for taxpayers to pay their taxes.
There are several types of penalties that the IRS can impose, including failure-to-pay penalties, failure-to-file penalties, and accuracy-related penalties. Each type of penalty has its own criteria for abatement.
How Does Penalty Abatement Work?
To request penalty abatement, you must submit a request to the IRS explaining why you were unable to pay your taxes on time or file your tax return by the deadline. The IRS will review your request and may grant penalty abatement if it determines that you had a reasonable cause for failing to pay or file on time.
Reasonable cause is a legal term that means you had a valid reason for not paying your taxes on time or filing your tax return by the deadline. Some examples of reasonable cause include:
- A serious illness or disability
- Natural disasters, such as floods or fires
- An error made by the IRS
- Death in the family
- Inability to obtain records necessary to file a return
It is important to note that penalty abatement is not automatic and is not granted to every taxpayer who requests it. The IRS will carefully review your request and determine whether or not you had reasonable cause for failing to pay your taxes on time or file your tax return by the deadline.
How Can the Carr Law Firm Help?
If you are facing penalties from the IRS, the Carr Law Firm can help you request penalty abatement. Our experienced tax attorneys can review your case and help you determine whether you have reasonable cause for failing to pay your taxes on time or file your tax return by the deadline.
We will work with you to gather the necessary documentation to support your request for penalty abatement and prepare a written request to the IRS on your behalf. Our attorneys have over 25 years of legal experience and are well-versed in tax law, including penalty abatement.
Contact us today to schedule a consultation and learn more about how we can help you with your tax problems.
Arizona Tax Law Representation
The Carr Law Firm provides tax resolution services in Arizona and can help you with all of your tax problems. We have extensive experience in Arizona tax law and can help you navigate the complex tax system.
Whether you are facing penalties from the IRS or need help with your Arizona state taxes, the Carr Law Firm can help. Contact us today to schedule a consultation and learn more about how we can assist you.
Conclusion
If you are facing penalties from the IRS, penalty abatement may be an option for reducing or eliminating these penalties. The Carr Law Firm can help you request penalty abatement and navigate the complex tax system. Contact us today to schedule a consultation and learn more about how we can help you with your tax problems. With over 25 years of legal experience and a Master Degree in Taxation,