Penalty and Interest Abatement

Have you been assessed interest and penalties?

The IRS charges interest on any unpaid tax debt from when the taxes were due until they are paid in full, at a rate which is the federal short-term rate plus 3%. If you are in a situation where taxes are owed to the IRS and you failed to file on time, a penalty will be assessed. That penalty is normally 5% of the tax owed for each month it is not paid, up to 5 months. These penalty and interest charges can mount quickly, adding a large amount to your total tax liability.

Fortunately, with the help of a knowledgeable Palm Beach County tax attorney, there can be an effective tax resolution to the problem of interest and penalty payments. An abatement is a reduction or lessening of the amount of interest or penalty that you owe the IRS. Usually, with the IRS abatement program, the interest you have accumulated cannot be abated and your initial tax liability will not be affected. The penalties, however, can normally be either reduced or eliminated in their entirety, relieving you of a large payment that would otherwise have to be made.

Valid Reasons for Penalty and Interest Abatement

Mr. Miller is a former IRS agent who has dedicated over 20 years towards assisting those with tax problems, including the prospect of having to make interest and penalty payments. Valid reasons for not filing your tax return on time can be:

  • Medical issues, such as a major illness
  • Destruction or theft of your records
  • You relied on advice from a tax expert that turned out to be incorrect
  • You were an innocent spouse
  • Not able to work for a long period of time
  • Other reasons that will be thought of as reasonable

Complete review of all aspects and documentation in your case may reveal legitimate reasons for not paying your tax debt. In this case, other options such as an offer in compromise, an installment agreement or an appeal may be the best option. At The Law Office of Michael K. Miller, P.A., all tax problems are looked at from the viewpoint that they can be solved with proper research and preparation plus aggressive actions taken on your behalf.

Please contact a Palm Beach County tax lawyer for help if you are facing IRS penalties and interest.

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