The IRS may impose penalties on taxpayers for several reasons. Each situation is different and, in each case, the solutions are also different. The lawyers at The Gartzman Law Firm, P.C., provide personal attention to people who face tax penalties. As experienced tax attorneys and CPAs, we negotiate penalty abatement options that meet our individual clients' needs and circumstances.
Some of the more common IRS penalties taxpayers face include:
- Penalty for failure to timely file return: The IRS may impose a penalty on you if you fail to file your tax return on or before the due date, usually April 15 (or October 15 with a timely filed extension for an individual 1040 return). The amount imposed as a penalty depends on your situation.
- Penalty for failure to timely pay: The IRS may also impose a penalty if you timely file your taxes but fail to pay any outstanding taxes on or before the due date. You could also be assessed a failure to pay penalty if the IRS determines you owe more taxes than you calculated on your tax return. If you owe more money than you can pay right now, you have options. Your best option is to speak with an attorney at The Gartzman Law Firm, P.C. — not to avoid filing.
- Penalty for accuracy-related issues: The IRS also imposes penalties against taxpayers for negligence or disregard of the rules and regulations, substantially understating the amount of tax you owe or substantially overstating other tax benefits. For these reasons, it is critical to be accurate and complete on returns, and it is critical to seek a professional's help if you believe that you are in trouble.
- Trust fund recovery penalty: This is a penalty imposed against anyone who is required to collect, account, report and deposit quarterly employment taxes for a business. If you are responsible for these tasks and fail to perform them, the IRS will impose this penalty.
- Civil fraud penalty: The civil fraud penalty is 75 percent of the tax liability, plus interest. Often, the civil fraud penalty plus the interest will exceed the original tax liability.
Contact A Tax Attorney About Penalties And Interest
Get the leader in tax resolution on your side to fix your IRS tax problems, reduce penalties and interest and settle tax debt. Contact The Gartzman Law Firm, P.C., today to speak with an IRS penalties and interest attorney.