The long unbearable wait is finally over; football season is back!
While watching some games this past Sunday, I couldn’t help but notice all of the penalty flags being thrown. It seems like they were being thrown on just about every other play.
For example, it has become virtually impossible for the defense to even touch the quarterback, without a penalty being thrown. It is almost like you can only hit the quarterback within about a 6-inch area of his body. And, you better not hit him too hard – or else. Soon, the defensive lineman will be required to bring the quarterback milk and cupcakes, I guess.
Well, to many folks, it seems to be the exact same thing with the IRS. The IRS has so many different types of penalties. And, most are far worse than the 15 yards and automatic first down.
If you complain too harshly to the referees, you may get further penalized or thrown out of the game. So, what can you do with the IRS penalties? Is there any hope to get the IRS to remove or at least lower your penalties, once they have assessed them?
The short answer is, YES.
However, you must know the rules and the procedures to be successful at this game, or at least make sure that you hire somebody to represent you that does.
The IRS Penalty Handbook has over 100 penalties listed in it. If you like horror movies or enjoy root canals, you can check it out yourself at www.irs.gov/irm/part20/.
The most common penalties are:
- Late filing up to 25% of the unpaid taxes
- Plus, Late payment up to 25% of the unpaid taxes
- In addition, Late federal tax deposits up to 15% of late deposits
- Negligence and/or substantial understatement penalty up to 20% each
- Fraud penalty up to 75%
Some of the listed reasons that IRS will consider in deciding whether or not to eliminate or decrease your penalties are the following:
- Death, Serious Illness, or Unavoidable Absence
- Fire, Casualty, Natural Disaster, or Other Disturbance
- Unable to Obtain Records
- Bad Advice from IRS
- Bad Advice from a Tax Advisor
- Official Disaster Area
- IRS Error
- First Time Abatement – if you had zero penalties 3 prior years
Know the IRS Penalty Rules and Procedures First
Before you go asking the IRS to remove the penalties for you, know what the rules and procedures are by reading their exciting book. Better yet, make sure that you hire somebody that knows how to succeed in their crazy world of penalties.
Believe it or not, IRS employees rely on a computer program (artificial intelligence) to often determine if you are eligible for a reduction. The IRS employee may not properly understand the huge number of rules themselves and all of their nuances. Who can blame them, it makes War and Peace seem like a Cat in the Hat book.
You have a much better chance of succeeding if you know the exact reference section in their handbook. Specifically make your claim citing it. Again, you can read their book, or hire a pro. However, do not just ask blindly, and hope that the IRS just has a kind and forgiving heart…too many punchlines here.
We offer a free consultation up front to discuss your qualifications and realistic chances of getting IRS penalties removed, or at least reduced. Call us at (877) 554-7874 – find out if you are a good candidate for penalty abatement up front at no cost to you.
