Providing Lee County taxpayers personalized solutions to reduce or eliminate IRS tax penalties
One of the most detrimental tax problems that affect Lee County taxpayers are the accruing tax penalties and interest stemming from IRS back taxes. As time goes on, these penalties and interest can snowball out of control, possibly leading to IRS collections such as wage garnishment and bank levys. Even if you have mounting tax penalties, there are options for relief. In addition to many other tax resolution strategies, we offer personalized IRS tax penalty abatement solutions that can reduce, or even eliminate your tax penalties. If you are a taxpayer in Lee County struggling with mounting tax penalties and interest, we are available to discuss your options for tax penalty abatement today.
The Nature Of IRS Tax Penalties
Accuracy Penalties are broken down into 2 distinct penalties, "Substantial Understatement" penalty and the "Negligence or Disregard of the Rules or Regulations". Substancial Understatement simply applies to taxable income that is underreported. Negligence or Disregard of the Rules or Regulations applies to more complex criteria, but falls under carelessly, recklessly, or purposely engaging in faulty practices when preparing and filing tax returns.
Civil Fraud Penalties
Civil Fraud Penalties constitute any scenario where underpayment of tax was caused by purposeful fraud. In cases of a joint return, the spouse will not be penalized unless fraud involvement can be proven. In addition to tax penalties, civil sanctions and criminal prosecution can be imposed as well.
Estimated Tax-Related Penalties
These penalties typically apply to self-employed workers or contractors, or any form of income that isn't filed as W2 by an employer. These taxpayers instead are required to file estimated tax payments on a quarterly basis, and if they are not paid, underpaid, or paid late, there will be a penalty imposed.
Frivolous Tax Return Penalty
If the IRS identifies information on your tax return as "frivolous", or lacking enough detailed information showing your tax return is correct, you, and your spouse (if filing jointly) will be subject to a penalty as high as $5,000 EACH.
Bounced Check PenaltyPretty self-explanatory, but if a check you write to the IRS bounces, the penalty is either 2 percent of the check amount (for amounts more than $1,250) or, $25 if the check is less than $1,250, whichever is less.
Resolve & Prevent IRS Tax Penalties
With the plethora of potential tax penalties that can be assessed by the IRS, it's crucial that Florida taxpayers take the right steps to ensure their tax preparation and filing is compliant. Pure Tax Resolution has a team of expert CPAs and Tax Attorneys that offer personalized tax penalty abatement strategies, as well as professional consulting to keep you compliant and penalty-free. For any concerns about your tax penalties, contact us today for a free consultation.