How To Reduce Tax Penalties
If you owe taxes and the IRS thinks you made a mistake, they’ll assess a penalty and interest charges. If you’ve received a notice indicating that you owe a penalty, do not ignore it! Ignoring tax notices can result in wage garnishment, asset seizure, and other undesirable consequences.
When the IRS believes you’ve made a mistake with your income taxes or it discovers you haven’t filed your taxes at all, it will assess a penalty and interest charges. If you’ve received a notice indicating that you owe a penalty, do not ignore it. Ignoring tax notices can result in wage garnishment, asset seizure, and other extremely undesirable consequences.
If you’ve been assessed a penalty by the IRS, call Nationwide Tax Resolution. We help clients across Texas and United States with their IRS penalty and tax abatement. We can help negotiate with the IRS on your behalf and request a penalty abatement.
What is First-Time Penalty Abatement
If you’re like us, you’ve been keeping a close eye on your taxes this year. But there’s one thing that stands between you and a clean audit: the IRS or other tax authorities can assess a penalty for a variety of reasons. These reasons include failing to file, failing to file on time without an extension and failing to pay income taxes on time.
The good news is that the First Time Penalty Abatement policy can help you avoid paying this fee.
Here’s how it works: with every day that passes without you paying your penalty, the IRS will increase its amount until you pay your bill in full. But if you meet certain qualifications—such as making a payment arrangement—or if you haven’t owed a penalty in the prior three years, the IRS may waive your penalty.
If you’re unsure whether or not your penalty qualifies for abatement, keep in mind that you may qualify based on Reasonable Cause. Contact Us and we will help you along the way.