IRS Tax Debt - IRS Penalties Bleeding You Dry? Know the Enemy

Going Broke: IRS fines are expensive. Sanctions were originally punished for the taxpayer if they do not follow the rules. Now they have a regular income to the IRS. Do not be blackmailed you to the IRS. Know your enemy and penalties of bleeding to prevent dry.

The Penalty Box:

Accuracy Penalties: The IRS can make a 20% penalty if they are too low, you will find your income is taxable.

Fraud Penalties: If your income with fraudulent intent, the penalty is 75% of the amount that you underreported under report. They can be defeated only with the 75% penalty if you fail to file your tax return.

No taxes are charged penalties: This penalty will commence on 16 April for the unpaid amount. It can be as high as 1% per month on the unpaid amount.

Penalties Late Filing of Return: Did you file your return late? The IRS can be a penalty of 5% per month to impose, on the basis of the tax balance sheet total of up to 25%.

Combined penalties: Did you pay the File and late? The IRS can be a combined rate of 5% per month to be imposed for up to 5 months.

Stop the Bleeding: Penalties will increase if you stop them. If you opt for penalty abatement costs, you can stop the sanctions and to reduce your debt by thousands of dollars. But first you must qualify.

Qualifications (good reason for Not Paying Penalties):

Serious illness of you or a family member.

Unavoidable absence

Business Records (by fire or other causes) destroyed

He can not determine the amount due, for reasons beyond your control

Affecting taxpayers in a position to receive deposits or payments to the unrest in the population

Lack of funds applies. But only if you are the lack of funds to prove occurred despite ordinary business prudence.

Other explanations to be acceptable ... but you have to prove that you exercised ordinary business care and prudence, but still not able to pay.

Fight Back: How to ask for punishment reduction.

Fill out IRS Form 843, "entitled to reimbursement or requests for abatement."

Add copies of the documents that prove your case

Make copies of every letter you to the IRS.

Warning: Penalty Abatement Winning the game is hard. You must make sure that you have a lot of documentation to prove your case. Check for errors! One small mistake and your request could be refused.

Editor Tips

This is just not right. Advisors who are too big, but it must be borne in mind that not all consultants are experts in all areas. Consultant to look for the knowledge of their specific discipline. If there is a potential criminal matter, a butcher would not really helpful. This is true in all arenas.

The minimum bid amount must generally equal to (or more) of the taxpayer's reasonable collection potential (RCP). The RCP is the sum of the realizable value of the taxpayer within the meaning of real and personal property, as well as his / her future income.

Hit without warning: Liens are often issued without warning. And there is a big problem with it. Why? Because it is illegal! If you do not receive a notice in the mail before a lien was issued to you, read on. See if you qualify with the lien removed.