Eliminating IRS Penalties

Eliminating IRS Penalties

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When you file or pay your taxes late or are audited and changes are made to your return the IRS will usually assess a penalty against you. The IRS penalty rates vary from  5 percent of the unpaid taxes for each month or part of a month that a tax return is late to a 75% tax penalty for fraudulent deductions or fraudulent omission of income.

The bad news is that IRS penalties can substantially increase your tax liability. The good news is that you can request that the IRS reduce or eliminate IRS penalties. The way to do this is to establish, through legal argument and supporting documentation, that your failure to comply with the federal tax laws was not willful but due to reasonable cause.

There are numerous possible reasonable cause arguments a taxpayer can make. Some of the reasons that the IRS accepts are reliance on a qualified tax adviser, serious health problems, an unexpected catastrophe such as floods, earthquakes and hurricanes that either caused you serious hardship or resulted in a loss of your tax records and an inability to comply with the law.

The tax professionals at THE PAPPAS GROUP have more than 50 years combined experience preparing, filing and negotiating IRS penalty relief applications. Please call us today for a free consultation about your IRS penalty case.


About Peter Pappas

Peter is a tax attorney and certified public acccountant with over 20 years experience helping taxpayers resolve their IRS and state tax problems.

He has represented thousands of taxpayers who have been experiencing difficulty dealing with the Internal Revenue Service or State tax officials.

He is a member of the American Association of Attorney-Certified Public Accountants, the Florida Bar Association and The Florida Institute of Certified Public Accountants and is admitted to practice before the United States Tax Court, the United States Supreme Court, U.S. District Courts - Middle District of Florida