Wednesday, March 14, 2012

IRS Penalty Abatement and IRS Penalty Forgiveness If You Do Not Qualify For An Offer in Compromise

IRS PENALTY ABATEMENT

and

PENALTY FORGIVENESS




What is it?

There were 14, or so, IRS penalty provisions back in 1955. Times have changed. Today there are 1000 times that amount. IRS Penalties, according to the IRS, exist to "encourage" voluntary compliance by supporting behavior acceptable to the Internal Revenue Service (IRS). 

What the IRS calls "voluntary compliance" by a taxpayer consists of:
  1. Preparing an accurate tax return.
  2. Filing the tax return timely.
  3. Paying any tax debt promptly.
When a taxpayer fulfills the above written obligations, the IRS considers the taxpayer to be "Compliant." IRS penalties on any back tax debt will apply when a taxpayer fails and or all of these obligations.

PENALTY FORGIVENESS

The IRS will provide you, the taxpayer, with penalty relief, or, penalty forgiveness for one or more of the following reasons:
  • Reasonable Cause (Divorce, Medical, etc. There are many reasonable cause actions.)
  • Statutory Exceptions
  • Administrative Waivers
  • Correction of an IRS Error
IRS Appeals may also recommend a penalty abatement, penalty forgiveness or  non-assertion of an IRS penalty based on what the IRS calls "the hazzards of litigation." 

AN IRS PENALTY ABATEMENT

HOW TO

An IRS Penalty Abatement or Penalty Relief may be requested by a taxpayer after or during an examination. The request must be done before the actual tax penalty has been assessed with a tax return  that is either filed late, a tax payment is paid late or after the assessment of the penalty and notification of the penalty. When the IRS receives a request for forgiveness of a tax penalty, the IRS will will analyze the reasons given by the taxpayer. From the information provided by the taxpayer, the IRS will determine if penalty relief is warranted. The burden of proof is with the taxpayer.



The request for IRS penalty forgiveness will be evaluated by the IRS based on your circumstances, the events that led up to this tax problem and the parties involved. The IRS will consider whether or not the taxpayer exercised ordinary business care and prudence but were a product of circumstances beyond the control of the taxpayer making it extremely difficult to impossible to comply with their obligations.

A taxpayer's petition for IRS penalty forgiveness must contain an explanation that pertains to the actual IRS penalty imposed with the corresponding dates. If a taxpayer's explanation is not clear enough, the dates do not correspond or the relief requested does not relate to the IRS penalty imposed, the IRS may deny your penalty petition.

YOU GET ONLY 1 CHANCE FOR PENALTY 

FORGIVENESS

A PENALTY ABATEMENT

MUST BE CORRECT THE 1ST TIME

IRS PENALTY ABATEMENT AND PENALTY FORGIVENESS INFORMATION:
  • Reasonable Cause - A penalty abatement or penalty forgiveness may be requested by a taxpayer from the IRS as what is called "Reasonable Cause." There are many factors that may be called "Reasonable Cause," however, your definition of what is a "reasonable cause" and the IRS's definition may be completely different. Reasonable Cause is determined by the IRS based on all of the facts and all of the circumstances in each of the taxpayer's circumstances. Caution: Have an experienced IRS Tax Professional handle your Penalty Forgiveness petition.
  • Ordinary Business Care and Prudence - The IRS may consider any reason for Penalty Forgiveness that establishes that a taxpayer exercised what is called "Ordinary Business Care and Prudence" causing the taxpayer to be unable to comply with the tax law.
  • Death, Serious Illness or Unavoidable Absence - The IRS will consider death, serious illness or unavoidable absence of the taxpayer as reasonable cause for filing, paying or depositing late under "some" circumstances.
  • Inability to Obtain Records - The taxpayer's penalty forgiveness petition to explain their inability to obtain necessary records may be constitute "Reasonable Cause" in some cases but not in others. Consult first with an experienced IRS relief professional.
  • Statutory Exception - The Internal Revenue Code may provide an exception to an IRS penalty in some circumstances.
  • Administrative Waiver - The IRS may clarify or interpret a provision in the Internal Revenue Code to provide administrative relief from a penalty that would otherwise be assessed.
  • Undue Hardship - The IRS may consider the granting of an extension of time for paying a tax or deficiency because the taxpayer has an "undue hardship." The "undue hardship" must be more than a mere inconvenience.
  • Erroneous Advice - The IRS will consider penalty forgiveness information related to erroneous written or oral advice received from the IRS erroneous advice given to a taxpayer by a tax professional when the IRS evaluates a request for penalty abatement or forgiveness of a penalty due to the taxpayer's reliance on that advice.
  • Fire, Casualty, Natural Disaster or Other Disturbance - An IRS Penalty Abatement or Penalty Forgiveness may be requested by a taxpayer if there was a failure to timely comply with a requirement to file a tax return or to pay a back tax as the result of a fire, casualty, natural disaster or what is termed to be "other disturbance."
  • IRS Error -  NEWS FLASH, IRS MAKES MISTAKES - The IRS can make an error in computing or assessing a tax debt, crediting accounts, etc. An IRS error could also be caused by a computer application that caused the tax penalty to be assessed to a taxpayer.


HOW ARE IRS TAX PENALTIES COMPUTED

What happens if you do not file and/or pay your tax debt on time? Well, the IRS will assess you, taxpayer, a 5% penalty for filing your tax return late. The IRS penalty is 5% of your unpaid back tax debt for each month part of each month that your tax return is late. The penalty will not be for more than 5 months totaling 25%. 

in addition to the 25% late tax return filing penalty, the IRS will continue to charge 0.5% late paying penalty for each month or part of a month as long as the tax is left unpaid. If the IRS issues the taxpayer a Notice of Intent to Levy and the taxpayer does not pay the back tax debt within 10 days from the date of Notice of Intent to Levy, the penalty will increase to 1% per month.

FEES FOR STOPPING AN IRS LEVY

and

IRS PENALTY ABATEMENT


(If You Don't Qualify for Offer in Compromise)

Affordable IRS Tax Help - If you owe the IRS between $10K and $100K; pay only $2050 for full tax service which includes: Prepare 3 tax returns, IRS Levy/IRS Wage Garnishment removal and IRS Penalty Abatement. 

CAN YOU AFFORD:

  1. A $250.00 retainer.
  2. 9 monthly fee payments of $200.00 for a total of $2050.00.
IF YOU CAN, YOU CAN AFFORD TO RESOLVE YOUR IRS BACK TAX DEBT




I am Dave Rosa, the V.P. of Client Relations at Flat Fee Tax Service, Inc. It is my responsibility to provide you with a thorough consultation. The consultation is free and there is no obligation on your part. During our conversation, I will come up with a preliminary action plan to resolve your IRS problem. After you become our client and we can call the IRS, it is at that time we, at Flat Fee Tax Service, Inc., can provide you with a complete plan that will resolve your IRS problem once and for all. 

Our company name says it all, Flat Fee Tax Service, Inc. When we accept your case, the fee that we quote you and put in writing is the amount that will resolve your back tax debt. We are guided by our Christian Values. Our fees are fair, reasonable and affordable. Our IRS tax team has no client complaints.

CALL ME TODAY

EMAIL ME AT

dave@flatfeetaxservice.com

FLAT FEE TAX SERVICE, INC.

HAS

NO CLIENT COMPLAINTS - EVER

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FLAT FEE TAX SERVICE, INC.:
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1 comment:

  1. If you have an IRS back tax debt and you do not qualify for an IRS settlement through the Offer in Compromise program, your tax debt can be reduced by use of a penalty abatement. You can receive penalty forgiveness. Call Flat Fee Tax Service, Inc. for a free consultation. Visit our website for fee information at: http://www.flatfeetaxservice.com For important information, read our Blog at: http://www.affordableirshelp.com You can receive daily updates by following us on Twitter: http://www.twitter.com/flatfeetaxsvc

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