If you owe taxes to the IRS or to the state, oftentimes the associated penalties, fees, and interest can make an already large debt even more unmanageable. Typically, taxpayers are assessed penalties for simple errors on their tax returns or for filing their taxes late. Luckily, the simple mistake you made while filing your returns doesn’t necessarily mean that you have to pay huge penalty fees; with the help of an experienced tax professional, you may qualify for a tax penalty abatement that can waive the penalties associated with your debt.
A penalty abatement is when the IRS or state taxing authorities grant relief from penalties and interest associated with penalties if the taxpayer meets specific criteria for qualifying. The qualifications for penalty abatement vary and depend largely upon whether the taxes are owed to the IRS or to the state. A tax professional who is experienced in penalty abatement can assess your eligibility by looking at your financials and the specific circumstances of your case.
IRS Penalty Abatement
If the taxpayer has extenuating life-changing circumstances that caused the tax issue—such as divorce, sickness, death, or severe financial hardship—the IRS will consider these circumstances when determining whether an abatement is appropriate for federal taxes. The IRS also offers a first-time penalty abatement if the taxpayer has never had a tax issue before, although this option is not available to everyone.
State Tax Penalty Abatement
States, on the other hand, have varying qualification criteria. To determine whether you qualify for your state’s abatement program, contact a seasoned tax professional familiar with the penalty abatement procedure in your state.
Get tax penalty relief with the tax professionals at Key Tax Group
When you are facing tax penalties from the IRS or state government, you need an experienced and knowledgeable tax professional by your side. At Key Tax Group, we specialize in penalty abatement: Our specialists understand the complex tax code, qualifying criteria, and have the expertise to guide you successfully through the penalty abatement process. For more information on how Key Tax Group can help you get relief from expensive tax penalties, contact our office today.