IRS Penalty Abatement for Pittsburgh, PA Taxpayers
IRS Penalty Abatement services of Pittsburgh Pure Tax helps Pennsylvania taxpayers reduce the amount of tax penalty they owe the IRS. In other words, unlike some countries that withhold all of the taxes due from taxpayers, eliminating the need for reporting, the U.S. depends to a large extent on voluntary reporting and compliance. The penalties for failure to comply with the rules, even unintentional failure to comply, are severe. IRS penalty abatement specialists, like our dedicated staff at Pittsburgh Pure Tax, overcome these issues every day.
There are more than 140 distinct IRS tax penalties that may be levied against a taxpayer. These penalties are intended to prevent against non-compliance and to punish those who fail to comply with the Code.
IRS tax penalties fall into 5 principle buckets:
- Accuracy penalties
- Fraud penalties
- Underpayment penalties
- Late filing or failure to file penalties
- Combined penalties.
Interestingly, one of the harshest penalties is for failure to file rather than failure to pay taxes. No matter whether you can afford to pay your taxes on time or not, you should always file when due to avoid late filing or failure to file penalties which are among the harshest of the penalties. 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. Moreover, there are potential criminal ramifications in the event of fraud as well.
Insofar as the penalties are cumulative, it is possible that multiple penalties will be applied to a single tax return or year. Because of the severity these penalties, it's without question your best interest to seek IRS penalty abatement from a local, professional tax help firm. Failure to act quickly to pay or attempt to even address your tax penalties will only increase the negative effect of your situation.
IRS tax penalties can lead to one or more of the following enforced collection activities:
Tax Liens— The IRS may file a public tax lien against you and or your assets, preventing you from selling assets without paying your tax, and potentially jeopardizing your loan and employment applications.
Wage Garnishment — The IRS can seize your wages directly from your employer, which means if you owe IRS tax penalties and fail to take action to settle your tax problem, the IRS can notify your employer of your tax delinquency and order them to send your wages directly to the IRS. (Learn more about wage garnishment relief)
IRS Seizures and Levies — The IRS can issue summons notifying you, your employer, your bank and others that the IRS intends to seize your property to pay delinquent taxes
In light of the severe consequences of failing to pay IRS tax penalties, again, it's in your best interest to seek local, and trustworthy relief for your tax penalty problems. There may well be mitigating circumstances that we can identify that can entitle you to a reduction in IRS tax penalties. Contact Pittsburgh Pure Tax for a FREE consultation about your potential IRS penalty abatement. (412) 927-1055