When you receive a notice from the IRS claiming that you owe tax debt, you may be shocked to learn that you’re also on the hook for substantial penalties. The IRS has been known to demand excessive penalties from millions of taxpayers each year, which amounts to billions of dollars. Many people simply try to pay the added penalties, but you can fight back. The tax relief specialists at Wall & Associates, Inc. help countless people challenge tax penalties each year. Here’s a quick look at just a few of the penalties our tax relief specialists can challenge.
Sometimes individuals simply forget to file their tax returns on time or they may underestimate the amount of time it takes to prepare a return. Unfortunately, if the IRS thinks you’ve filed your tax return late, you could be subject to a failure-to-file penalty. The penalty is calculated based on your tax debt. Typically, it’s five percent of your tax debt for each month that your tax return is late, up to 25%.
Filing late and paying late often go hand-in-hand. Taxpayers who are suspected of paying late are charged a penalty of 0.5 percent of the unpaid taxes each month that the payment is late. The IRS can increase this penalty after issuing notices such as a demand for immediate payment or a notice of intent to levy. The tax relief specialists at Wall & Associates, Inc. may be able to reduce this penalty for taxpayers who filed on time and have an installment agreement.
Understating Tax Debt
Our tax relief specialists can also fight the substantial understatement penalty, which is used when a taxpayer is suspected of understating the amount of tax owed. This penalty amounts to 20 percent of the tax understatement. If you did not intentionally understate your taxes but the IRS believes that you did, contact the tax relief specialists at Wall & Associates, Inc. today.
Here at Wall & Associates, Inc., we understand that the substantial penalties can make it all but impossible to pay off your tax debt in full. Fight back against the IRS by working with our tax relief specialists. Call our tax consultants today at 800-337-6699 for your free consultation.
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