Abatement of Penalties & Interest in Texas

IRS Penalties and Interest

It seems like the Internal Revenue Service loves punishing taxpayers with penalties and interest. Tax penalties began as a way to encourage prompt payment for taxes owed to the government. They’re added so often now that the extra charges have become a primary money-maker for the Internal Revenue Service. The IRS assesses billions of dollars in penalties against taxpayers annually.

Nick Nemeth and his team of tax attorneys, financial analysts, CPAs, enrolled agents, case managers, and legal assistants can help taxpayers  try and remove or reduce penalties, otherwise known as penalty abatement. Interest accrues on any unpaid balances in addition to penalties and generally cannot be abated. However, if an underlying tax or penalty is removed or reduced, the interest that has accrued on that portion should be abated.

Two common penalties that can meet criteria for possible abatement are:

  • Failure-to-File: A failure to file penalty may apply if you did not file your tax return by the tax filing deadline.
  • Failure-to-Pay: A failure to pay penalty may apply if you did not pay all of the taxes owed by the tax filing deadline.

Each of these penalties are calculated a bit differently. Although both are capped at a maximum of 25% of your unpaid tax. The Failure-to-File penalty is 5% of your unpaid tax for each month the return is late. The Failure-to-pay penalty is 0.5% of the unpaid tax for each month the tax remains unpaid. The IRS will assess penalties for partial months.

Call us at (972) 484-0829 or fill out the Free Case Evaluation Form to schedule your FREE confidential consultation in Dallas, Fort Worth, Houston or anywhere else in Texas.


Abatement of Penalties & Interest in Texas
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