Houston, Texas Tax Audit and IRS Penalties Attorneys
In cases involving back-owed taxes, the IRS charges interest and penalties for any outstanding taxes, as well as for late filing, valuation overstatements or understatements and substantial understatement of the tax due.
The combined charges for interest and penalties often may be much greater than the original tax debt. If you have questions regarding IRS penalties, contact our Houston, Texas or Seattle, Washington tax attorneys today.
However, the law allows us to remove or reduce a penalty based on "reasonable cause." To request a penalty reduction, we prepare a detailed report of circumstances, facts and other supporting evidence to convince the IRS that the charges for penalties should be abated. The requests for abatement must be made under a penalty of perjury.
Circumstances where IRS will remove the penalty charges may include:
- You relied on the IRS' written advice concerning your tax situation which resulted in the penalty.
- Death or serious health condition suffered by a family member
- Mental or Physical illness
- Drug or related dependency problems
- Reliance on a bad accountant or a tax advisor
- Extended military service
Considering Your Options - Understanding Paying Outstanding Tax Debt
There are numerous other circumstances which may result in removal of the penalty, and the outcome of each case can vary depending upon how your case is argued. Keep in mind that proper documentation and detailed description of the basis to prove "reasonable cause" is the key to having the penalties removed. Depending on the specifics of your case, you may be able to work out a tax settlement or payment plan with the IRS.
In addition, IRS may also remove or reduce interest charges due to errors by the IRS' ministerial act, based on the facts and circumstances of each case.
