One way not to pay tax penalties or interest is to file your taxes properly and by the due date. This sage advice comes from my years of being an Atlanta CPA and tax attorney – offering IRS representation for people who want to prevent tax problems in the first place. However, we live in an imperfect world and often circumstances arise that, for an individual taxpayer or business, can make adhering to our tax obligations nearly impossible to do.

Here at Gartzman Law Firm, we see taxpayers, especially in these financially turbulent times, who are experiencing financial troubles like never before and have lapsed in paying their taxes. The reasons are varied and often include one of the following scenarios: extended unemployment, divorce, death, serious illness of loved one, or business tax issues. Filing late or paying taxes late are the most common reasons people find themselves paying penalties and interest but as Georgia tax help lawyers, we help these clients understand that the longer their tax burden goes on unresolved, so too the penalties and interest increase.

According to IRS regulations, if a return is not filed by the due date (including extensions), a failure-to-file penalty may be added to the amount owed, 5 percent for each month or part of a month that a return is late (up to 5 months). Failure to pay penalties accrues at ½% or 1% per month. This can be a large sum for individuals or businesses already facing significant tax problems.

Penalty Abatement
If a troubled taxpayer is able to prove reasonable cause, they are encouraged to file a Request for Penalty Abatement with the IRS. Should their case be accepted, they could see a reduction and sometimes elimination of a large portion of the penalties due. However, the IRS does not abate penalties willingly. Since it is their job to collect all taxes due, they have made Penalty Abatement difficult to obtain and highly scrutinized; not always favorable to an individual taxpayer facing the IRS alone.

This means the burden of proof is placed directly on the taxpayer to prove worthiness for Penalty Abatement for back taxes. It is highly recommended to hire a reputable Atlanta Tax Attorney firm who will approach the IRS directly on your behalf. Having a tax law expert on your side, demonstrates to the IRS your willingness to resolve this matter and could better your chances of a penalty reduction related to your case.

To better prepare for penalty abatement, a reputable tax attorney generally requests the following from clients with significant tax problems:

1. Act quickly! – It is important that any tax problems get resolved quickly because the longer they continue into the future, the harder it will be to make a convincing argument for penalty abatement.
2. Get all paperwork and records in working order regarding this case. Gathering these documents together will go a long way to providing back up information and a persuasive case.

Get Help to Solve Your Tax problems
After collecting all the information necessary, your Georgia tax lawyer will be in a better position to explain the extenuating circumstances surrounding your case and negotiate directly with the IRS for you. By hiring a tax attorney and CPA in Atlanta, Georgia as your representation, you are placing them in the driver’s seat as your advocate who can help you get back on your financial feet again.