Abatement of Tax Penalties

The Internal Revenue Code authorizes the abatement of penalties imposed by the IRS for failure to file tax returns or for failure to pay tax and other penalties, if the failure is due to reasonable cause and not willful neglect.

Forgiveness of penalties is decided on a case-by-case basis. Generally, if the taxpayer exercised ordinary business care and prudence and was, nevertheless, unable to file the return on time, the delay is considered due to reasonable cause. Also, a failure to pay may be due to reasonable cause if the taxpayer exercised ordinary business care and prudence, yet could not pay the tax liability.

If the IRS determines that failure to pay or failure to file was due to reasonable cause and not willful neglect, the penalty will not be assessed. You would still be responsible, however, for the underlying tax owed plus interest due.

Let us seek abatement of your penalties due to reasonable cause and get a reduction in the amount you owe.

We can conduct an evaluation of your current tax situation and make some recommendations. If we find an area of concern, you can rest assured that by engaging our services, our office will act as your advocate and seek to resolve your IRS problems.

For prompt evaluation of your case, we encourage you to contact us. You may also contact us using our toll-free number at 866.494.6829

IRS 2017 Tax Deductions

IRS Announces 2017 Inflation Adjusted Tax Benefits

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It is hard to believe that we are just two months away from the year of 2016 and as always towards the end of each calendar year the IRS announces next year’s annual inflation adjustments. You can check for more than 50 tax provisions, including the tax rate schedules, and other tax changes for tax year 2017 in Revenue Procedure 2016-55. The tax year 2017 adjustments generally are used on tax returns filed in 2018.