Information About IRS Penalties by dmishesq


If you are experiencing IRS problems, it’s almost guaranteed that you have IRS penalties. Find out everything you need to know about penalties and how to get them reduced from an experienced tax attorney.

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									Information About IRS Penalties There are several valid reasons why taxpayers generally feel at least a slight apprehension when talking about IRS penalties and paying back taxes. Fortunately, unbeknownst to many people, there are actual guidelines and procedures set in place that are intended to give regular taxpayers some recourse when dealing with an IRS penalty. Taxpayers can ultimately be released from back taxes and other penalties through negotiations and installment plans. A number of circumstances warrant the imposition of penalties to taxpayers. Some of these are a consequence of not filing a tax return, incorrectly filing, intentionally misleading the IRS, and not paying quarterly taxes. In fact, the IRS has an entire Penalty Handbook that was designed to outline all of the IRS penalties, IRS tax penalty abatement and IRS penalty assessments. Bear in mind that the IRS also earns money from penalties levied on taxes, aside from the mere collection of taxes. The government provided taxpayers with a number of courses of action and made the process of dismissing tax levies relatively simple because it wants to be sure that penalties assessment is done in the right manner. The process is now friendlier in comparison to the outrageous battle it once was. Taxpayers learn about interests, levels and abatement of penalties by browsing through the IRS Penalties Handbook. When taxpayers are wellinformed about the nature of these penalties, they will find ways of reducing their chances of being subjected to these as well. The IRS Penalty Policy Statement implies that penalties are technically no longer automatic. You may qualify for an IRS abatement of penalties, or a cancellation of some or all of your penalties, if you can justify your actions and establish that they were done on good faith. How much money does the IRS make in terms of collection from penalties alone? On the average, the figure goes over $15 billion. This is indeed a substantial source of income for the government but on the negative side, this causes a great deal of frustration on the taxpayers. The situation worsens, for some people, because the penalty is added to the total amount of tax due. Interest is then accrued based on this new, larger sum. Interests on tax debts actually go up to a maximum of 25%. In just a very short period of time, this can actually double or even triple the total amount of debt, making it significantly more difficult for the taxpayer to pay off the entire amount. When you get an IRS notice stating a possible problem resulting from some tax dues, you can actually respond and request from them a cancellation of these penalties. This course of action marks the beginning of the penalties abatement process, which is a right all taxpayers can take. The "good faith exception clause" in the provisions of all IRS penalties implies that the government can lawfully cancel consequences imposed on you if proven that you did not purposely defraud the IRS. To sum it up,

although IRS penalties spell danger to you and your assets, their effects can always be reduced, if not altogether eliminated, by utilizing the options available to all taxpayers. Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He also spends a great deal of time traveling the nation providing training to attorneys, CPAs and Enrolled Agents on how to handle their toughest cases with the IRS. If you would like more information about his services please visit

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