Snowballing tax penalties and interest loom large for some taxpayers. This problem can quickly escalate, as an accumulation of penalties may double the amount of tax owed.
Current IRS rules allow for tax penalty abatement of tax penalties and of interest or of a refund when there were extenuating circumstances contributing to this problem, or if you had a good reason for falling behind in the first place. In order to accomplish this, we will need to show the IRS that you had “reasonable cause” for not paying your income taxes.
What qualifies as a reasonable cause? It depends on the circumstances involved. The IRS procedures for deciding who qualifies for tax penalty abatement and for what reason seem to differ in each case. The following are just a few circumstances under which you can qualify for tax penalty abatement. Some of the most common reasons are:
- If you are involved in embezzlement or theft
- Fire, flood, or other disasters beyond your own control
- Bad accounting practice or bad tax advice
- Serious personal health issues
- Serious health issues of an immediate family member
- Death of a family member
We will show the IRS that you used “due diligence” and “no neglect” in attempts to repay the income tax debt that you owe and will get you the most favorable settlements available.
You can find out more about our IRS representation services by following the links above or e-mail or phone us for more information or to set up a consultative meeting in our convenient Bethesda offices