Abating Tax Penalties And Interest
Most people who owe back taxes are not purposely trying to avoid payment. Often an unforeseen life event has placed them under financial hardship, and paying their tax debts in full is impossible.
Unfortunately, the IRS doesn’t care why you haven’t paid your taxes, only that you owe money. If you miss the payment deadline, you will be punished with large penalties and continuously accruing interest.
Large penalties and interest can make a modest tax debt overwhelming. However, there is a way to eliminate penalties and interest and reduce your overall tax debt. I can help.
The IRS is hesitant to abate penalties and will only do so in limited circumstances. When making its determination, the IRS will examine your tax payment history, the amount of time it took you to come into compliance, and whether you had reasonable cause for failing to file or pay.
Reasonable cause may be found if:
- You relied on a tax adviser
- An incident outside your control such as a serious illness, death, fire or natural disaster, prevented you from complying
- You were serving in a combat zone
- You received erroneous advice from the IRS
While abating penalties is challenging, abating interest is even harder. The IRS will only abate interest associated with late taxes if the interest accrued is due to an error or delay in a ministerial act. A ministerial act is a procedural or processing act.
Reduce Your Tax Debts, Call Me For Help
I am attorney Brian Coggins. For more than 15 years individuals and businesses in Roseville, California, and throughout the Sacramento area have turned to me, first as an accountant, and second as a tax lawyer, for help resolving their tax issues.
If you owe taxes, penalties and interest can make the debt even harder to pay. Abating penalties, and interest when possible, can make a huge difference in your ability to pay.
For help reducing your tax debt, contact my office today. Call 916-270-2895 to schedule a free consultation.