If you owe the Internal Revenue Service money, you are probably concerned about payment of the debt, interest, and penalties. Some taxpayers are able to obtain a penalty abatement which may significantly reduce or even eliminate the penalty levied by the IRS. According to the IRS, the purpose of these penalties is to encourage taxpayers to comply with tax law. Therefore, if you can prove that your non-compliance is the result of mitigating circumstances, you may be eligible for a reduction or even elimination of your tax penalty.
To obtain this type of relief, you must submit a penalty abatement request letter to the IRS. The IRS receives millions of these letters every year, and the majority of them are rejected. Most penalty abatement letters are poorly and unconvincingly written and they fail to identify the required causes which are eligible for abatement. Sarasota CPA and attorney Jo Ann M. Koontz and CPA Marina Parkin can help you write a compelling letter that may convince the IRS that your non-compliance was the result of circumstances and that you truly deserve relief from penalties.
Not everyone qualifies for a penalty abatement. In order to prove your eligibility, you must show that your non-compliance with tax rules was the result of factors over which you had no control, including:
According to the 2012 Treasury Inspector General for Tax Administration Support, 1.65 million taxpayers qualified for this abatement in 2010, yet only 8.8% of taxpayers in a sample group received the abatement. This was largely due to the fact that many taxpayers and tax professionals were simply unaware of the abatement policy.
Because the regulations surrounding penalty abatements are quite complex, it is essential that you work with an experienced tax lawyer or CPA. Koontz & Parkin, CPAs can help you determine if you are eligible for penalty abatement. If you are eligible, then a letter should be prepared for the IRS to convincingly set out your case seeking penalty forgiveness.
Jo Ann M. Koontz and Marina Parkin offer a powerful combination of in-depth knowledge of tax regulations and years of experience representing clients. To schedule a consultation, call the Sarasota office of Koontz & Parkin, CPAs at 941.328.3993.