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IRS Penalty Abatement Services of Minneapolis, MN

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IRS penalty abatement is placed on the taxpayers who have failed to obey one or more provisions of the Tax Corse or Treasure regulations. It refers to the reduction of tax penalties, which may be as much of a burden as the tax itself. The five types of tax penalties that may be qualify for IRS Penalty Abatement are as follows:

  1. Accuracy-related penalties
  2. Penalties for tax fraud
  3. Penalties for under-payment of tax
  4. Penalties for filing late or failing to file tax returns
  5. Combined penalties

Tax Penalties

Tax penalties exist to “encourage” taxpayers to follow the law when it comes to their taxes. The number of tax penalties has increased in recent years, which means there's a tax penalty for just about every type of error or omission.

To make matters worse, tax penalties are cumulative which can account for multiple penalties in a single tax year. This is an important reason to hire a knowledgeable tax attorney to assist with your tax problems, so you are aware and will not make any mistakes in the future.

Tax penalties occur for a couple main reasons:

  1. Failure to file your tax return on time
    This penalty begins at 5% of the amount of tax owed and can reach up to 25% of the total tax due.
  2. Fraud
    This is considered a civil penalty and is quite sever.  It begins at 15% per month which with a maximum tax penalty of 75% of the amount of tax owed.  There is also a potential for jail time.

Collections

The IRS enacts many tax penalty collection tactics. Like any tax problems, IRS tax penalties cannot be ignored, but rather must be acted upon quickly. It is important to take proper action against IRS collections to save yourself from further damage. Our Minneapolis based tax attorneys have a wealth of knowledge, older than the Old Log theater, when it comes to assisting with any of the following:

    1. IRS Wage Garnishment

      When the IRS issues a wage garnishment they essentially take a large percentage of your hard-earned paycheck and apply it directly towards your past due taxes. Once the IRS instructs your employer to garnish your wages, there’s nothing you can do to get that money back, though, our experienced tax attorneys can prevent the IRS from continuing to take your wages, usually, within 24 hours of initial contact.

    2. Tax Liens

      A tax lien is a serious collection strategy that can snowball into great problems. When the IRS files a tax lien against you and your assets, you will be unable to dispose of your assets to satisfy your debt until you pay your taxes and penalties. This can result in an inability on your part to get a job, purchase a home, or simply own assets in your name.

    3. IRS Notices, Summons and Seizures

If the IRS has issued collection notices, summons, and letters to you, you should know that they can even communicate directly with your neighbors and employers, which can lead to further embarrassment.

Don't risk incurring tax penalties when you can have a dedicate Minneapolis tax attorney on your side, contact us today for a FREE consultation.