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Midtown New York City Law Firm



WEBEL LAW, PLLC
535 Fifth Avenue, Floor 4
New York, New York 10017
(646) 373-1055




IRS PENALTIES & INTEREST













WHERE DO I START TO CHALLENGE THE IRS?


Rightly so, most of us fear receiving a letter from the IRS. Most taxpayers don't understand the IRS's policies and procedures. The IRS has thousands of employees—including tax attorneys—whose job is to use the complex U.S. Tax Code to collect to collect money from people like you. The IRS is intimidating and daunting.

That's why you need to call us. Our tax attorneys know and understand the IRS's policies and procedures and—like the IRS employees—use the U.S. Tax Code daily. You need a Tax Attorney on your side. Call us for a free phone consultation.






DO I REALLY OWE THAT MUCH?


The IRS assumes their tax assessment is correct and you are guilty of not paying your taxes. Unlike criminal law, the IRS forces you to prove that you are innocent and owe less than they claim. Proving your innocence is often difficult, especially for someone not trained or experienced in tax law.

We're trained and experienced tax attorneys, so we can often help people like you identify IRS errors and opportunities for relief.




IRS PENALTIES
(Not a Complete List)

  • Fraud in Filing Late
  • Paying IRS Penalties late
  • Inadequate Disclosure
  • Failing to Provide Substantial Authority
  • Inadequate Disclosure Statement
  • Frivolous Return
  • Fraud
  • Failure to Furnish Tax Shelter Registration Number
  • Accuracy-Related Penalty
  • Negligence or Lack of a Reasonable Attempt to Comply with the Internal Revenue Code
  • Disregard of Rules or Regulations
  • Substantial Understatement of Income Tax
  • Information Reporting Penalties
  • Failure to Furnish Correct Payee Statements
  • Failure to Use Correct Identification Numbers




WHERE DO PENALTIES COME FROM?


On top of taxes owed, the IRS adds penalties including Failure to File, Failure to Pay, and others that are more exotic. Again, the IRS assumes that you They intentionally refuse to pay the amount they claim you owe and automatically add penalties as punishment.



HOW MUCH ARE PENALTIES?


Some penalties are substantial. Both a Failure to File penalty and a Failure to Pay penalty can be up to 25 percent of the taxes owed. That's 25 percent for each. Penalties for fraud can be up to 75 percent. The dreaded Trust Fund Recovery Penalty is 100 percent.

On top of those penalties, the IRS can also add interest on unpaid taxes.

The additional sums take your difficult spot from overwhelming to impossible.



HAVE PENALTIES LOST THEIR PURPOSE?


Congress originally instituted penalties to scare taxpayers from paying their taxes timely. The IRS claims that penalties encourage the payment of taxes. However, the IRS earns millions of dollars each year in penalties. They're another source of revenue for the government, so don't expect the laws implementing penalties to go away.

Even when they know that the IRS's Tax Assessment is wrong, most people accept the IRS's claims and pay the taxes, penalties, and interest as charged. They don't know how to challenge the IRS and want them to go away.

On the other hand, penalties are an area where the IRS may grant partial relief to taxpayers through various tax discounts. The IRS doesn't unilaterally reduce taxes. You must request it with reasons and a supporting argument. You need someone who has advanced tax law training and experience to identify opportunities available to you and address them with the IRS as applied to your unique facts.






CAN MY PENALTIES BE ABATED?


Depending on the facts of your situation, we may be able to find or negotiate a reduction to have your penalties lessened or possibly waived. We never guarantee results, but we must understand your situation before identifying opportunities for reasonable cause for relief. Call us so that we can discuss the facts of your case.