#howtogetridofirspenalties

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IRS Civil Penalties

Types of IRS Civil Penalties

irs civil penalties The IRS lists more than 100 possible civil penalties in the Tax Code.  The following list explains some of the most common types of penalties:

Failure to Pay Penalty

The IRS assesses a failure to pay penalty if the taxpayer files a tax return, owes taxes, but does not pay those taxes.  This penalty is 1/2% of the outstanding tax debt.  It accrues monthly up to a maximum of 25%.

Failure to File Penalty

The IRS assesses a failure to file penalty if the taxpayer does not file a tax return.  This penalty is 5% of the outstanding tax debt.  It accrues monthly to a maximum of 25% of the total taxes owed.

Accuracy Related Penalty

The IRS imposes accuracy related penalties under Section 6662(a) of the United States Code.  The IRS imposes this penalty in the following types of situations:   understatement of income tax, negligence or intentional disregards of IRS rules and regulations, substantial valuation misstatement, substantial overstatement of pension liabilities or a substantial estate or gift tax valuation understatement.   This penalty is 20% of the outstanding tax debt.

Gross negligence penalty

The IRS imposes gross negligence penalties under Section 6662(h)(i) or (j) of the United States Code.  The IRS imposes this penalty to the extent that a portion of the underpayment described in Section 6662  is attributable to one or more gross valuation misstatements.  This penalty is 40% of the outstanding tax debt.

Civil fraud penalty

The IRS imposes civil fraud penalties under Section 6663(a) of the United States Code if any part of any underpayment of tax  described in Section 6662 is due to fraud.   This penalty is 75% of the total tax owed.

Penalty Abatement

If the IRS imposes a civil penalty on you, contact an experienced tax attorney.  In tax year 2016, the IRS assessed over 39 million civil penalties totaling more than 27 million dollars.  Of this amount, the IRS abated only 13% of the penalties totaling around 9 million dollars.  The Rothrock Law Firm has successfully abated penalties numerous times.  Our firm abated more than $100,000.00 of penalties for one client in 2018.   Radha Rothrock is a tax attorney in Fort Myers, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law before all Tax Courts in the United States.  Call today for your free consultation at (239) 206-1976. Read the full article

[taxlawyernaples-blog]

IRS Civil Penalties

Types of IRS Civil Penalties

irs civil penalties The IRS lists more than 100 possible civil penalties in the Tax Code.  The following list explains some of the most common types of penalties:

Failure to Pay Penalty

The IRS assesses a failure to pay penalty if the taxpayer files a tax return, owes taxes, but does not pay those taxes.  This penalty is 1/2% of the outstanding tax debt.  It accrues monthly up to a maximum of 25%.

Failure to File Penalty

The IRS assesses a failure to file penalty if the taxpayer does not file a tax return.  This penalty is 5% of the outstanding tax debt.  It accrues monthly to a maximum of 25% of the total taxes owed.

Accuracy Related Penalty

The IRS imposes accuracy related penalties under Section 6662(a) of the United States Code.  The IRS imposes this penalty in the following types of situations:   understatement of income tax, negligence or intentional disregards of IRS rules and regulations, substantial valuation misstatement, substantial overstatement of pension liabilities or a substantial estate or gift tax valuation understatement.   This penalty is 20% of the outstanding tax debt.

Gross negligence penalty

The IRS imposes gross negligence penalties under Section 6662(h)(i) or (j) of the United States Code.  The IRS imposes this penalty to the extent that a portion of the underpayment described in Section 6662  is attributable to one or more gross valuation misstatements.  This penalty is 40% of the outstanding tax debt.

Civil fraud penalty

The IRS imposes civil fraud penalties under Section 6663(a) of the United States Code if any part of any underpayment of tax  described in Section 6662 is due to fraud.   This penalty is 75% of the total tax owed.

Penalty Abatement

If the IRS imposes a civil penalty on you, contact an experienced tax attorney.  In tax year 2016, the IRS assessed over 39 million civil penalties totaling more than 27 million dollars.  Of this amount, the IRS abated only 13% of the penalties totaling around 9 million dollars.  The Rothrock Law Firm has successfully abated penalties numerous times.  Our firm abated more than $100,000.00 of penalties for one client in 2018.   Radha Rothrock is a tax attorney in Fort Myers, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law before all Tax Courts in the United States.  Call today for your free consultation at (239) 206-1976. Read the full article