To most people, paying taxes is bad enough. But when you have interest and penalties to worry about, it’s even worse. Wouldn’t it be great if you could avoid accruing additional charges? Fortunately, there are things you can do to keep from having to pay such fees. Read on to learn more, and if you have any questions or need professional assistance with your taxes, call unfiled tax lawyer Mary King.
The Law Offices Mary E. King will provide you with a skilled unfiled tax lawyer who can assist you in negotiations with the IRS. Mary King and her team are available to help you with any tax issues, so don’t hesitate to get the help you need.
Avoiding Accrued Interest and Penalties
The IRS charges more than taxes to people who owe it—the IRS also charges interest and penalties on top of the tax bill. It is important to take advantage of the IRS’s repayment options if you already owe taxes (which may include interest and penalties). You may need to enter into a payment arrangement with the IRS. But as your balance increases, so does the interest.
It’s not surprising that many people in such a situation ask the IRS for help. Although the IRS typically won’t remove interest, being proactive will go a long way in helping you reduce it.
There are three options to consider when faced with additional fees and charges:
Lower Your Tax Amount
You or a tax professional who is experienced should first determine why you owe tax. There is always an opportunity to reduce or eliminate the tax. Quite simply, you owe less interest if you lower your tax debt. These are the most common reasons why people have to pay the IRS:
Return Incorrect/Incomplete: Ask a qualified tax professional for a review of your return to ensure it is accurate, and you get all credits and deductions that you are entitled to.
CP2000 Notice: When your tax return does not match the income information that the IRS holds about you, the IRS will send a CP2000 Notice. The IRS may charge you the tax plus interest and penalties if you do not respond or respond incorrectly. You should first determine if the IRS has accurate information about the tax you owe. Then, go from there. This is exactly how to deal with a CP2000 notice.
Unfiled Tax Return: The IRS can prepare a substitute return for your return if you have not filed one. The IRS will only prepare your substitute return based on the income information it has about you from employers and banks. This means that you won’t be eligible for any deductions or credits. You can reduce, or even eliminate, the amount you owe by filing a return to substitute the substitute return. This includes interest. Keep reading to learn how to reduce the penalties you have accrued.
Reduce Accrued Penalties
You can reduce or eliminate penalties, and in doing so, you will also lower the interest. There are four options for penalty abatement, as discussed below:
1. Administrative waiver (most often first-time penalty abatement)
2. Reasonable cause
3. Legal exceptions
4. IRS errors
Start by identifying the option that you may be eligible for. Next, send your request to the correct IRS unit for review. If you need help with this, contact an unfiled tax lawyer. IRS tax attorneys are highly skilled at negotiating and communicating with the IRS. When you secure an unfiled tax lawyer, you can trust that they will seek the most favorable outcome on your behalf.
Establish Monthly Repayments
To stop interest building up, you must pay your entire tax bill. If that is not possible, there are other options. The worst thing you can do is ignore the IRS and what you owe them. Take action now, and the IRS will reduce your penalty by allowing you to set up a monthly payment schedule, known as installment agreements. Remember, the fewer penalties you have, the less interest you will owe.
There are many types of installment agreements offered by the IRS with different terms. Your unfiled tax lawyer will help you determine which option is best for you and then speak with the IRS on your behalf to create the agreement. We invite you to contact the Law Offices of Mary E. King today if you need help with any tax-related matters. Mary and her team will work with you to find the most suitable solution so you can enjoy true financial freedom. But it’s important to act fast. The sooner you address your tax concerns, the sooner we can help you resolve them.
Do You Owe Interest and Penalties on Unfiled Taxes?
Contact the Law Offices of Mary King today to get professional guidance and direction concerning your unfiled taxes or other tax issues. Our tax specialists are always ready to help. So give us a call at 941-906-7585 or fill out our contact form to set up a consultation.
The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.