If you didn’t pay your taxes on time, you may have been assessed fees because you didn’t pay your taxes by the time they were due. That fee is called a tax penalty. If you then contact the IRS about your late taxes and that penalty, it’s possible that the IRS could reduce or remove that penalty, which is called an abatement.
Read on for everything you need to know about Tax Penalty Abatement
What Happens if I Don’t Pay My Taxes?
According to irs.gov, after receiving a notice stating the IRS assessed a penalty, taxpayers should check that the information in the notice is correct. Those who can resolve an issue in their notice may get relief from certain penalties, which include failing to:
- File a tax return
- Pay on time
- Deposit certain taxes as required
What Are The Reasons One Might Need Relief?
The IRS defines them in three different categories, which are Reasonable Cause, Administrative Waiver and First Time Penalty Abate, and Statutory Exception. The IRS explains each reason “type” below:
Reasonable Cause: This relief is based on all the facts and circumstances in a taxpayer’s situation. The IRS will consider this relief when the taxpayer can show they tried to meet their obligations but were unable to do so. Situations when this could happen include a house fire, natural disaster, or a death in the immediate family.
First Time Penalty Abate: A taxpayer may qualify for relief from certain penalties if he or she:
- Didn’t previously have to file a return or had no penalties for the three tax years prior to the tax year in which the IRS assessed a penalty.
- Filed all currently required returns or filed an extension of time to file.
- Paid, or arranged to pay, any tax due.
Statutory Exception: In certain situations, legislation may provide an exception to a penalty. Taxpayers who received incorrect written advice from the IRS may qualify for a statutory exception.
What Types of Penalties are Eligible for Relief?
The website irs.gov explains in detail each of the penalties eligible for relief.
- Other penalties as applicable
Sometimes, it can seem simple, and communicating with the IRS might seem like something you can handle on your own. There are those circumstances when it is a smooth and simple process to resolve your tax issues independently. However, when things get too complex, it might be in your best interest to hire an experienced, qualified attorney to support your tax needs.
Tax Attorney in the DC & Maryland Region
If you missed paying your taxes for any reason at all, there could be relief in sight. As much as you might just want your issues with the IRS to go away, that won’t happen until you take the proper steps to resolve your taxes. Michael Lapidus is an experienced tax attorney who can help.
Call today for a free, no-obligation consultation at 202-785-5111. Michael and his team at The Lapidus Law Firm will fight to make things right.