Taxpayers who fail to file their returns or pay their taxes are given a one-time waiver known as the first-time penalty abatement (FTA). Common penalties such as failure-to-file, failure-to-pay and failure to deposit can be revoked with the help of an FTA. In most cases, IRS is willing to negotiate with the taxpayers to agree upon a mutually beneficial settlement. While experienced tax attorneys from a reputable law firm such as the Law Offices of Nick Nemeth can help you request IRS penalty abatement, it is advisable to be aware of the common mistakes people commit in the process. Continuing on the subject, we present a compilation of mistakes to be avoided when requesting IRS penalty abatement.
Failing to Provide a Reasonable Cause
The IRS is willing to relieve you from a penalty only if you can prove that you have a genuine and a “just” reason for not paying your taxes or filing your returns. Failing to provide a reasonable cause will lower your chances of getting a penalty abatement from the IRS. A few reasonable and “just” causes would be natural disasters, fire accidents, civil disturbances, or an unavoidable absence. Ensure that you have appropriate documentation and evidence to support your claims.
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Providing Inaccurate or False Information
It is strongly recommended that you provide only accurate and factual information to the IRS. Providing inaccurate or fabricated evidence to the IRS is a felony and you may face several undesirable consequences such as an audit, criminal penalties and civil penalties. When requesting a penalty abatement, consult an IRS attorney and file the necessary information with strong evidence and avoid lying or dealing with the IRS without a legal counsel when you are unsure about your position.
Ignoring the Significance of Documentation
If the IRS is under a suspicion that you may have committed a tax fraud, they would want to go through your tax records and other important documents. In such a case, it pays to have all the important papers filed carefully. Few key papers such as the copies of your previous tax returns, bills and documents related to property acquisitions and inherited property can improve your chances of receiving a penalty abatement.
Not Seeking Professional Help When Necessary
Requesting for an IRS penalty abatement can be a confusing task that requires you to adhere to a lot of guidelines and meet a certain criteria. One has to be prepared to file several documents, furnish necessary records and so on. In such a case, a professional IRS tax attorney from the Law Offices of Nick Nemeth can bring their experience to the table and drastically increase your chances of availing a penalty abatement.
It is advisable to file your returns and pay your taxes on time. If, however, you face any issues with the IRS with regards to discrepancies in your tax payments or returns, it is highly advisable to seek professional help. Dealing with the IRS and understanding various aspects of the tax laws is complex. If you happen to commit any of the aforementioned mistakes while requesting a penalty abatement, you may end up inviting more trouble to your doorstep. It is highly recommended to outsource such critical tasks such as requesting an IRS penalty abatement to experienced IRS tax lawyers at the Law Offices of Nick Nemeth. For a confidential, no-obligation consultation, fill out our contact form or simply call (972) 488-0829.