Contact South Coast Tax Resolution for Your Free Tax Debt Analysis!
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 still 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. Eliminating these penalties may lift a huge financial burden off of your shoulders. Normally, penalties make up 25% of the total tax debt amount, but can be up to 90% of the total amount owed because of the large failure to file penalty and overall underpayment interest rates. 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, or 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.