Waiving IRS Interest and Penalities

 

 

The IRS can charge penalties up to 25% of the total tax debt owed. With interest included, you can quickly double your tax debt owed to the IRS.

 

However, you may be able to waive IRS penalties from your tax debt.

 

IRS penalties may be waived if you qualify for a Penalty Abatement.

 

Penalties may also be waived if there is reasonable cause to grant relief, which, according to the IRS, exists if "the taxpayer exercised ordinary business care and prudence in determining their tax obligations but nevertheless failed to comply with those obligations.”

 

The IRS may also waive penalties if the taxpayer can show one or more of the following: natural disaster, death or serious illness, erroneous advice or reliance, innocent spouse relief, mistake, unavoidable absence or hardship.

 

You may also qualify to waive IRS penalties if you are an American citizen living overseas and have avoided paying taxes by non-willful conduct, or "conduct that is due to negligence, inadvertence or mistake, or conduct that’s the result of a good-faith misunderstanding of the requirements of the law.” Further, you may be able to escape criminal prosecution if you are an American living overseas and have willfully neglected to pay taxes, although fines will likely be assessed.

 

Hiring a Denver tax attorney could save you thousands of dollars: an experienced and skilled tax attorney, such as our Denver tax attorneys, could help waive thousands in IRS penalties.

 

The IRS may waive interest only on income tax, as a result of error or delay due to the fault of the IRS.

 

If you have any questions regarding whether you are able to waive your IRS penalties, contact our Denver tax attorney immediately: 303-618-2122. All of Gantenbein Law Firm's licensed tax attorneys have their Masters in Tax Law. OUr Law Firm is conveniently located in Denver and serving all of Colorado.