Our team of licensed tax professionals offer solutions to reduce or eliminate tax penalties and interest for Dallas taxpayers
IRS penalty abatement (penalty reduction) is needed when the IRS has added penalties to your tax bill. The Internal Revenue Code contains more than 140 tax penalties. Tax penalties are intended to encourage taxpayers to follow the law, file taxes on time, file taxes accurately and honestly, and to punish those who fail to meet their legal obligations to file and pay taxes. If your tax filing doesn't file into compliance with these laws, you will be subject to tax penalties and interest, and only a tax professional like our tax attorneys, enrolled agents, and CPAs can help you qualify for reduction (or abatement) of these penalties.
There are five types of tax penalties that may be candidates for our Tax Penalty Abatement service:
- Accuracy-related penalties
- Penalties for tax fraud
- Penalties for under-payment of tax
- Penalties for filing late or failing to file tax returns
- Combined penalties
File Your Taxes Every Year, & On Time
Don't pay any attention to people who tell you that you don't have to file tax returns. And, even if you can't pay, make sure you file on time. Otherwise, you will be subject to some of the harshest tax penalties in the Code. The "failure to file" penalty starts at 5% of the amount of tax owed and may reach as much as 25% of the total tax due. Of course, the penalties for fraud are quite severe as well, reaching up to 15% per month, with a maximum tax penalty of 75% of the amount of tax owed. Not to mention the criminal implications of tax fraud.
To make matters worse, tax penalties are cumulative and thus it is possible that multiple penalties will be applied to a single tax return or year. It's not difficult to understand that taxpayers confronting tax penalty problems need IRS penalty relief.
How The IRS Collects Delinquent Tax Penalties
If you ignore your outstanding tax debt, penalties, and interest, the penalties will not only continue to accrue, but you will be become more at risk of collections. The IRS has sweeping authority to collect what is owed to them, using these primary tactics:
- Tax Liens - The IRS may file a public tax lien against you and or your assets, preventing you from selling assets without paying your tax and your tax penalties, which may resulting in your being unable to get a job, buy a house or a car, finance your kids' education and own assets in your own name.
- Wage Garnishment - The IRS even take your wages directly from your employer to apply towards your past due tax obligations.
- Levies and Seizures - The IRS can seize your assets to satisfy the debt owed to them, including bank accounts, investments, or personal property like vehicles and real estate.
These extreme measures are a product of the taxpayer neglecting their tax debt for an extended period of time. To avoid collections and growing interest on your tax debt, it's absolutely crucial you take action as soon as you are aware of your back tax debt. By consulting with our team of tax professionals, you will have a professional advocate on your side to negotiate a settlement with the IRS, and keep your assets safe.