Naples & Fort Myers Penalties & Interest Tax Debt Lawyer

Whether you file your tax return late or have outstanding taxes, you are likely to see some type of penalty from the IRS. The IRS has more power and rights than any other creditor to collect the tax debt from you whether it’s garnishing wages or levying bank accounts without getting approval from a court.

A failure to pay back taxes can result in penalties and interest from the IRS that will only increase each year that you don’t pay. The penalties and interest can be greater than the original tax debt. If you continue to not pay back taxes, you will see more IRS penalties, interest, levies on bank accounts, liens against your property, seizures of your assets, and more.

On average, the IRS penalty for filing taxes late is 5 percent each month and can be up to 25% of the amount due on your tax return. Fortunately, there are some ways in which you can get the IRS penalties abated or wiped out either in full or partially for that tax year or for many years.

To do this, you must submit a Penalty Abatement request to the IRS, which shows you, as the taxpayer, are eligible for a First Time Penalty Abatement or have a Reasonable Cause explanation for the year (or years) as to why your penalties should be thrown out.

Other than a Penalty Abatement (which is often the best option), you can go for an “Offer in Compromise” or you can apply for an alternative program through the IRS to reduce tax debt. Naples tax attorney Todd Babbitt can help you make payment arrangements with the IRS.

A Naples tax lawyer can help you explain to the IRS why your penalties should be removed. Attorney Todd Babbitt will prepare a report to convince the IRS that the penalties should be abated. Here are some reasons you can get relief from your penalties:

• A reasonable cause such a mistake made by you (the taxpayer), ignorance of law, substance abuse, a death, serious physical or mental illness, divorce, extended military service, or an unavoidable absence.
• Statutory exceptions such as tax code changes.
• Administrative waivers due to undue hardship, fire, flood, natural disasters, or bad tax advice from an accountant or tax advisor.
• A correction of service error which is usually a mistake made by the IRS.

If you have penalties or interest piling up on your late tax returns, Naples and Fort Myers IRS Tax attorney Todd D. Babbitt will work to get them removed or reduced. Contact him today for a free consultation about your past due tax returns. problem.