IRS Penalty Abatement for Buffalo Taxpayers
One of the tax resolution methods we specialize in at Buffalo Pure Tax is abating tax penalties for local taxpayers that struggle with accruing tax penalties and interest. Just when you thought having back tax debt was stressful enough, the IRS and State tacks on accumulating tax penalties. The IRS and State Treasuries across the country will tell you tax penalties are their way of "encouraging" taxpayers to pay their tax debt on time. But from our vast experience with tax penalty abatement, we find that the majority of our clients were unaware tax penalties existed at all, basically defeating the purpose of the "tax debt prevention" purpose of tax penalties.
FYI, there are more than 140 distinct IRS tax penalties that are exercised against taxpayers nationwide. Amongst these tax penalties, they fall within 5 principle categories:
- Accuracy penalties
- Fraud penalties
- Underpayment penalties
- Late filing or failure to file penalties
- Combined penalties.
Believe it or not, one of the harshest tax penalties stems from failing to file your tax return, as opposed to filing a false or erroneous return. With that being said, you should always file your taxes on time, regardless if you are able to pay on time or if the information may be erroneous. The “failure to file” penalty begins at 5% of the amount of tax owed the day after a tax return is due, and can reach as much as 25% of the total tax due after 5 months. Of course, the penalties for fraud are quite severe as well, reaching up to 15% per month, with a maximum tax penalty of 75% of the amount of tax owed. In the most extreme cases, there may be criminal prosecution involved.
The overall theme is that once you are targeted for tax penalties, they can evolve into a much more hazardous situation if not resolved properly. One of our many tax resolution specialties at Buffalo Pure Tax is conducting a comprehensive evaluation of your past tax returns to decide which penalties can be reduced, or even eliminated, before the IRS or State exercises more extreme action against you.
Seek IRS Penalty Abatement Today
Outstanding tax penalties, in addition to back tax debt itself, can lead you down a hazardous road of wage garnishments and asset seizures. Although serious, don't panic, you can prevent these issues by consulting our team of Tax Attorneys and CPAs to construct a personalized tax penalty abatement strategy for you. We look forward to offering you relief for your tax penalties, call today for a free consultation with our friendly tax help experts (716) 970-4775.
The Pure Tax Resolution team of Buffalo, NY