Individuals and businesses must comply with their tax obligations and the issue of failing to pay or underpaying taxes can have serious consequences. The Internal Revenue Service has the power to impose significant penalties that can add up quickly and ultimately make your tax debt unmanageable.
Located in Denver, Colorado, The Blair Law Office represents a wide range of clients throughout the country who are facing IRS penalties in connection with a variety of situations, including:
- Failure to file tax returns
- Failure to pay taxes owed
- Late filings
- Civil fraud
The IRS can impose financial penalties that will be added to the total tax bill or place a lien on the taxpayer. In addition the agency can implement a tax levy and seize income, financial accounts and property to satisfy the tax debt.
Tax Penalty Relief Options
Although the IRS has broad authority to assess penalties against taxpayers, it is possible to minimize the financial consequences. We have extensive experience negotiating with tax authorities and a proven track record of obtaining tax penalty relief.
Tax Penalty Abatements
The IRS has a program that enables taxpayers to reduce or abate penalties that have been assessed against them, provided that there is a reasonable cause. An abatement will only be granted for specific reasons outlined in the IRS Penalty Handbook, including:
- The taxpayer received incorrect advice from a tax preparer
- The taxpayer received erroneous guidance directly from the IRS
- The taxpayer has a good tax payment history
- Serious illness
- Significant disability
In order to qualify, it is necessary to demonstrate that the taxpayer exercised reasonable care and prudence in determining his or her obligation but failed to comply with the law nonetheless.
Another type of abatement that many taxpayers are not aware of is known as a first time penalty abatement (FTA) which is only available to those who have a clean compliance history and allows penalty relief for a single tax period.
Tax Penalty Waivers
Depending on the circumstances, the IRS may decide to waive the penalties. There are two types of waivers:
Administrative Waiver – typically announced in a policy statement or news release by the IRS to clarify or interpret a new policy or provision or to correct an IRS error such as its failure to make necessary forms available. An FTA also falls under the umbrella of administrative waivers.
Statutory Waiver – penalties are waived by law for specific reasons, including:
- The taxpayer relied on bad written advice from the IRS
- The taxpayer was late because he or she was serving in a declared combat zone
- A deadline was postponed due to a federally declared disaster
Bold & Aggressive Tax Representation
If the IRS has assessed a tax penalty against you or your business, it is essential to engage the services of an experienced tax law attorney. The Blair Law Office has the knowledge and skills that can help you obtain tax penalty relief. The firm routinely represents clients in tax penalty disputes with the IRS and strives to have penalties reduced or entirely removed. For residents in Arapahoe County, Adams County, Jefferson County or Denver, whether you are seeking a tax penalty abatement or a waiver, contact The Blair Law Office today.