Tax Penalty Abatements in California
Get Answers from a Glendale Tax Attorney
In many cases, the associated monetary penalties of missing tax payments or making some other error when filing your annual returns can make your outstanding tax debt far worse than its original amount. Whether they be due to filing late, paying less than the owed amount, submitting frivolous tax returns, or interest on past-due balances, penalties can potentially make up to 25% of your overall tax debt – putting you into an even deeper financial hole. Fortunately, if you have been penalized by the Internal Revenue Service (IRS), you may be able to qualify for relief through a process known as “penalty abatement.”
At RJB Law Offices, our Glendale tax lawyers can review your financial situation and help you pursue a course of action that maximizes your chances of securing the relief you need. Whether through penalty abatement, bankruptcy, or other debt-relief strategies, we have what it takes to guard your interests and help you pursue a debt-free future.
Am I Eligible for Penalty Abatement?
Penalty abatement, also known as first-time abatement (FTA) penalty waivers by the IRS, have been around for 15 years and can be used by qualifying individuals to eliminate certain penalties that have been accrued during a single tax period.
To qualify for penalty abatement, you must not have any penalties of a significant amount in the last three years. With that being said, you may still be eligible for abatement if you had an estimated tax penalty, received a reasonable cause relief, or received an FTA more than three years ago.
An FTA can be used to remove the following types of penalties:
FTAs may be granted to individuals for the first two penalties, while business and payroll taxpayers may sometimes be eligible for all three. In addition, applicants are required to show compliance with filing and payments, as well as have a clean penalty history for three years.
Alternative Penalty-Reducing Strategies
In addition to first-time penalty abatement, our team of advocates will be able to help you explore various other strategies of reducing your penalties, including presenting the IRS with:
- a reasonable cause for your overdue taxes
- identifying and correcting IRS errors
- advocating for administrative waivers, or statutory waivers.
Since available strategies will vary depending on the specifics of your situation, it is recommended you consult with our attorneys to determine the most appropriate course of action. Upon a detailed case review, our attorneys can craft a custom-tailored case that the tax authorities will find acceptable.
Overcome Your Tax Debt Today
At RJB Law Offices, we believe that no taxpayer should be forced to pay more than they owe due to unfair penalties and fees. Our Glendale tax lawyers understand the various strategies necessary to guard your interests and get you back in good graces with the IRS. With responsive communication and personalized advocacy, we can negotiate with the IRS and work towards the most beneficial solution possible. No matter how complex your situation may be, we are committed to stand by your side and provide the unshakable support you need during this difficult time.
Schedule a free consultation online today to take the first step towards financial security.