Despite the fact that the IRS and State Tax Boards are the most powerful organizations in the nation, you still have rights and can fight for those rights to protect your livelihood. Defense Tax Partners can defend you from State and Federal bureaucracies and assist you in getting the best result for your circumstances. If you have accumulated significant penalties on top of your principal tax debt, it’s best to seek legal help in the form of penalty abatement services.
Understanding Penalty Abatement Services
You might have accumulated hefty penalties and interest in addition to your initial tax debt if you haven’t paid your taxes or completed your tax returns in a number of years. With the help of the service known as penalty abatement, Defense Tax Partners can often help you get these costly fines and interest rates eliminated.
The First Time Penalty Abatement Waiver is a type of tax relief the IRS offers to some qualifying taxpayers who have incurred penalties for failing to file, failing to pay, or failing to deposit. This applies to you if it is your first time dealing with tax debts that have resulted in fines, interest, and penalties.
When you engage our penalty abatement services, our tax professionals will help you put together your information and letter of request to the IRS. We will work with you to draft a letter and compile the necessary paperwork that will explain your unique situation and why you should be granted penalty relief. We’ll also recommend the right kind of documents to collect and build a case with.
Who Needs Penalty Abatement Services?
You may need a penalty abatement service if you face any of these common types of penalties:
- Filing Late: A failure-to-file penalty may apply if your return is not submitted by the deadline. For each month or portion of a month that a return is late, there is typically a penalty of 5%. It can go up to about 25%.
- Failure to Pay Penalty: The amount of tax you owe is used to determine the failure-to-pay penalty. For every month that the tax is not fully paid, a penalty of 5 to 1.5 percent is imposed.
- Failure to File Penalty: The period between your tax return’s due date and the actual filing date is used to determine the failure-to-file penalty. Each month or portion of a month that the tax return is late incurs a penalty of 5%, with a maximum penalty of 25%.
- Accuracy Related Penalties: The “substantial understatement” penalty and the “negligence or disregard of the rules or regulations” penalty are the two most common accuracy-related penalties. The amount of these fines is calculated as a flat rate of 20 percent of the net tax understatement.
The Benefits of Hiring Penalty Abatement Service Providers
Defense Tax Partners can assist you in navigating the penalty abatement qualification procedure, help you to reduce your tax debt, and possibly save you tens of thousands of dollars in additional penalties, interest, and fees imposed by the IRS.
Why Should You Work with Defense Tax Partners’ Penalty Abatement Specialists?
With thousands of clients helped with their tax-related needs over the years, you can trust that you’ll receive the highest standard of care for your situation.