Colorado Springs: How Can I Get a Penalty Abated Using Reasonable Cause?

 

 

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

 

Colorado Springs: How Can I Get a Penalty Abated Using Reasonable Cause?

 You failed to file your tax return on time and/or did not pay your taxes. Then, after you file and make a payment on your taxes you receive a statement from the IRS charging you penalties for late filing and penalties fo late payment of your taxes.  After some research you find that you may be able to resolve the penalties through reasonable cause.  What is reasonable cause?  Reasonable cause is a provision that allows taxpayers to request the reduction or removal of IRS penalties if they can demonstrate that their failure to comply with tax obligations was due to circumstances beyond their control. According to the IRS Penalty Handbook, reasonable cause is generally granted when a taxpayer exercises ordinary business care and prudence but is still unable to meet their tax responsibilities. Each case is evaluated individually, based on its unique facts and circumstances.

To help you determine if reasonable cause is possible, Marcelino Dodge, EA, CTRC can review your circumstances.  To qualify for reasonable cause relief, you must provide a written statement under penalty of perjury, detailing the reasons for your noncompliance. Marcelino can help you prepare supporting documentation that can strengthen the request.  Some of the more common basis for reasonable cause relief include reliance on incorrect IRS advice and unavailability of records.

The IRS evaluates whether you the taxpayer made a genuine effort to comply with tax laws and whether the noncompliance was due to unforeseen events. The burden of proof lies with you the taxpayer, who must clearly link the reasons for noncompliance to the penalties imposed. By demonstrating reasonable cause, taxpayers can potentially avoid penalties and reduce their financial burden.

Cash Tracks Financial of Colorado Springs
Marcelino Dodge, EA, CTRC
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
www.cashtracksfinancial.com
success@cashtracksfinancial.com