Failure to pay your taxes on time will result in penalties and interest that can contribute greatly to an already negative financial condition. Filing tax returns and paying taxes on time are the best ways to avoid large penalties. However, if you are struggling with genuine hardship financial, the IRS may reduce or waive penalties based on reasonable cause.
Penalties accrue on unpaid taxes depending on the severity of the offense and the amount. If you’re a small business owner who has neglected to pay taxes, you’re going to have a much higher liability than a working class citizen who works for someone else. These penalties exist simply to encourage paying taxes on time, so neglecting taxes will only make matters worse. You can’t escape them either way.
That’s not to say that people who face genuine financial hardship aren’t excused. Despite what many say, the IRS is not so cruel. Citizens who have come upon unfortunate times can appeal to the IRS and have penalties waived or reduced.
Reasons for reducing tax penalties are as follows:
- Death, serious illnesses or unavoidable circumstances
- Living in an officially designated disaster area
- Statutory exceptions or special cases
- IRS errors
- Financial hardship situations
In cases like the above, the IRS cannot reject penalty abatement. Be sure to include all relevant information and craft a proper penalty abatement request. This is best accomplished with the help of a certified and experienced tax professional.
Certified tax professionals understand the nuances involved with the IRS tax code. They also know exactly how to coax the IRS into granting penalty abatement. Certified members of our qualified team at Long Island Tax Resolution Services will work to reduce or waive tax your penalties. The IRS will only entertain requests which considered worthy. We are experts are communicating the high points of your case to the IRS, ensuring your genuine hardship is given full consideration. Furthermore, we know that every case and taxpayer is unique, so our customized tax relief process guarantees the best results – at the lowest costs.
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