How To Avoid IRS Notices And Penalties

How To Avoid IRS Notices And Penalties

Notices and penalties are two powerful collection forces that IRS uses to get taxpayers in line with their tax obligations and that these two should be avoided. They can be a threat to taxpayers and may cause you trouble if a lot of them get into your tax payment system. IRS can penalize you with just about anything you can imagine. The best way to fight penalties is to get ahead with them and know for what reasons and when they strike. You don’t need to study all the penalties based on the Internal Revenue Code, you can consult a tax attorney who knows the way around tax laws and legalities for a better understanding on these matter.

What are IRS notices and IRS penalties?

A notice is simply the IRS’ way of informing you that there has been a change on your account for a particular tax year and most common though not always may indicate the amount of taxes you owed has increased. Penalties are imposed due to failures related to Federal or local state taxes like failure to file income tax or filing incorrect returns. Penalties can be civil or criminal or both. They can be monetary, may involve forfeiture of asset/s or you may be sent to jail. Most of the time, monetary penalties are based on the amount of taxes not paid on time and has the ability to increase during the period of nonpayment.

IRS sends millions and millions of notices every year and they can’t deny the fact that most of the notices they send out are not correct. And because an IRS notice cannot be ignored, a lot of taxpayers often respond to these notices and are paying incorrect penalties. You don’t need to pay for these unnecessary penalties if you knew within your mind that you shouldn’t be paying them, you can appeal and fight for what is right especially when you have enough documents to prove that you are compliant with you tax obligations. Penalties can tremendously increase and usually surpasses the amount of taxes that you actually owe IRS. If IRS penalties are a lot more than you can afford, you should seek help from a tax attorney immediately to know what your chances are in order to obtain a Penalty Abatement. Penalties or in IRS’ terms “additions to tax” compound as time goes by and no one can be escape from it.

The best way to avoid IRS notice and IRS penalties is to observe and follow rules in filing income tax returns in a timely manner. If you are on this track right now, then you are already winning the battle against IRS. But if you’re not and in trouble with IRS regarding a very high tax debt plus penalties and interest consult a tax professional such as a tax attorney, CPA or an IRS enrolled agent immediately. Instant Tax Solutions can better provide IRS tax relief help than any other company can. ITS has a team of brilliant and experienced tax professionals that specializes in tax relief aid.