Showing posts with label penalties. Show all posts
Showing posts with label penalties. Show all posts

Thursday, May 29, 2025

Colorado Springs: Navigating the Stress of IRS Interest and Penalties Abatement

 


Taxes can often evoke a mix of emotions, from anxiety to embarrassment, especially when the looming dread of IRS interest and penalties comes into play. For many, the thought of facing these financial burdens alone only adds to the stress and worry.

As a tax professional, my mission is to ease these feelings, reassuring clients they are not alone in this journey. When dealing with IRS interest and penalties, the sense of annoyance and shame can be overwhelming. You might feel isolated, fearing the worst each time the phone rings. But remember, these feelings, though understandable, do not define your situation.

I help to transform that frustration into a proactive approach where relief and resolution become achievable. By addressing these issues head-on, we ensure you are not just reacting to the IRS but actively working to abate those might-be penalties and eliminate tax surprises. The goal is to replace those feelings of exposure and vulnerability with confidence and optimism for the future.

Having someone to advocate for you can turn the daunting IRS process into a manageable one. Through meticulous handling of your case, we aim to secure interest and penalty abatements, reducing the financial load and the emotional strain. The peace of mind knowing you won't face these hurdles alone is invaluable, and that’s the cornerstone of the service I provide.

So, if you're feeling cornered and stressed about IRS penalties, remember that relief is possible. Together, we can turn your tax struggles into a story of recovery and assurance, ensuring a brighter, worry-free future.


525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com

Tuesday, May 20, 2025

Colorado Springs: Navigating the Storm: Overcoming Payroll Tax Woes

For small business owners, the weight of payroll taxes can feel like a looming storm cloud, casting shadows of uncertainty and stress over their financial landscape. Falling behind on these obligations can stir feelings of anxiety and helplessness, especially when immediate solutions seem out of reach. 🌧️

As the deadlines approach, the pressure mounts, and the fear of penalties adds to the heavy burden already felt by these entrepreneurs. It's essential to remember that this overwhelming situation is a shared struggle among many, and with the right guidance and strategic planning, brighter days are ahead. ☀️

The path forward begins with transparency and reaching out for professional advice—be it from financial advisors or tax professionals who can illuminate the way through this daunting period. They can help navigate options like tax payment plans or exploring different financial resources to relieve the immediate stress. 🗺️

In times of financial strain, community support and professional guidance can serve as a beacon. Remember, seeking help is a strength, not a weakness. Lean on your network, keep open lines of communications with tax agencies, and take proactive steps to manage the storm. With resilience and determination, this challenge, too, can be overcome. 💪✨


525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com

 

Monday, September 9, 2024

Colorado Springs: Can a $400,000 IRS Payment Request Really be Reduced to $0?


 

There is nothing that will shock you and make you feel helpless as receiving a notice from the IRS that says something like "you failed to file your tax return so we filed a tax return for you and by the way, you now owe us $400,000 in taxes, penalties and interest." How and why does a taxpayer even receive such a notice?

There are several reasons why a taxpayer could receive such notice.  First is that they have not filed a tax return for one or more years.  The Internal Revenue Service (IRS) received income documents (W-2's, 1099's, etc) from third parties indicating that income was paid to the taxpayer.  When the IRS went looking for a tax return to match the income documents, there was no tax return on record.  There can be any number of reasons why a tax return was not filed.  The reason is not important to the IRS.  The IRS is just looking for a tax return.  When the tax return is not filed the IRS has the statutory authority to file a substitute tax return on behalf of the taxpayer with the information they have.  That is happened with the client who received a $400,000 tax bill from the IRS and a $35,000 tax bill from the state.

How did we get this $400,000 tax bill reduced to $0?  After meeting with the taxpayer, we decided on a course of action that would help the taxpayer to reduce the debt.  At the time I did not know for sure how much of the tax debt we could reduce.  After implementing the agreed upon solution, we very pleased when we received letters stating that the federal tax is reduced to $0 and the state tax is reduced to $0.  This is a case where the taxpayer qualified to have the tax debt reduced.  I cannot guaranteed this result for every client.  What I can guarantee is that we will work very hard so your feelings of worthlessness and overwhelming worry will instead become confidence and thankfulness that the dark cloud the of the IRS taking your hard earned is gone.


525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com

Monday, August 7, 2023

Colorado Springs: Do I Need a Representative to Help With My Tax Matters? Is It Possible to Do It On My Own?

 


It is possible for a taxpayer to attempt to navigate the complicate IRS system by either preparing their own tax return or speaking with the IRS when behind on their taxes.  Keep in mind though the IRS does not always volunteer information on programs that can help taxpayers.  Sometimes tax professionals and tax representatives have to educate IRS employees on the tax statutes.

With a trained tax professional like Marcelino Dodge, EA you will save time and more importantly you likely save money even after paying fees.  Many time penalties can get reduced and if you qualify you may be able to settle your tax debt for less than you owe.  

These are just a few consideration if you feel like you want to manuever the IRS rapids on your own.

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

Wednesday, May 24, 2023

Colorado Springs: Important Question: What is Reasonable Cause?


In the Internal Revenue Manual it states that penalties can be abated for reasonable cause?  What is reasonable cause?  Sadly, what a taxpayer thinks is reasonable cause is not considered reasonable cause by the Internal Revenue Service.  Many times when requesting penalty abatement a taxpayer has to go to appeals.

Marcelino Dodge, Enrolled Agent, can help in the request for abatement of penalties.  Many times the penalty is just an honest mistake on the part of the taxpayer.  Other times a detailed explanation may be needed to explain the reasons why the taxpayer qualifies penalty abatement.  Other considerations are 1) Has the taxpayer had this issue before and 2) What is the taxpayer's history of compliance?

There are other factors that can also affect taxpayer's claim of reasonable cause for penalty abatement.  To have the best chance for penalty abatement, maintain a good history of compliance.


525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com    

Wednesday, May 10, 2023

Colorado Springs: My Request for Penalty Abatement was Denied, What Options Do I Have?


 

When a request for abatement of penalties is submitted, many times you will get the response that your explanation does not meet the reasonable cause standard.  If you have received such a denial, do not despair.  There is normally a period of time (30 to 60 days) you have to appeal the initial decision.  This leaves the question: How can I win on appeal?

To start you need to hire competent tax professional such as Marcelino Dodge, EA to  represent.   With a proper review of your facts and circumstances, we can determine if you qualify for First Time Abatement or if a more detailed appeal is needed.  On a more detailed appeal we will need all the information and documentation as to why you feel the penalties should be abate.  A clear, concise letter of explanation can then be prepared and submitted with the documentation establishing your case to the IRS appeals office for review.  The strong case we present the easier we make it for the IRS to approve the penalty abatement.


525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com

Wednesday, February 8, 2023

Colorado Springs: Owe Hundreds of Thousands to the IRS? What Can You Do?


 

Where do you start?  First find a tax professional such an Enrolled Agent to a complete analysis of your specific situation.   With the analysis you will compare what you spend with what the IRS allows.  There will be an analysis of assets to check on equity you have in any real estate, including the home you occupy.   There is also an examination of the amount time left on the collection statute.   A proper analysis is necessary to know exactly what you can and cannot due.

Can some type of loan be used to help make you uncollectable?  Will filing the state tax returns first help you with the IRS?  These are just two of the questions that can be asked during the representation process.  

Marcelino Dodge, EA can complete the analysis and help you get your tax issues resolved.




525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com


Wednesday, July 20, 2022

Colorado Springs: How Can I Get My IRS Penalties Reduced or Eliminated?

 



Is it really that easy to get your IRS Penalties reduced or eliminated as some advertisements claim?  In a previous blog I discussed the reasons why the Internal Revenue Service charges penalties to taxpayers.  

Some penalties such Failure to File, Failure to Pay, and Failure to Deposit can be abated under some circumstances.  However to qualify for abatement, taxpayers must meet some specific criteria including not being penalized in the prior 3 years.  Marcelino Dodge, Enrolled Agent is well versed in this process and can help you to get these penalties abated if you qualify.

If a taxpayer does not qualify for the penalty abatement discussed above, then you may need to use the IRS appeals process.  In this all the penalties can be appealed and used in the negotiation progress with the possibility of abatement during this negotiation time, which may include the filing of an offer-in-compromise.  I recommend that taxpayers do not try to navigate these waters on their own.  The recommendation is to find an Enrolled Agent or CPA that works in tax resolution to guide you through this process.

Marcelino Dodge, EA
525 N Cascade Ave
Suite 200
Colorado Springs, CO 80903
(719) 359-8789
(Call for an appointment)

Colorado Springs: Why Does the IRS Charge Penalties?

 


There are many advertisements from national companies claiming that they can eliminate penalties from the Internal Revenue Service.  If it was only that easy to get an IRS penalty abated.  Before we can discuss how IRS penalties can be abated, we need to cover why the IRS charges penalties.
  1. IRS penalties are to encourage voluntary compliance -- Our tax system is voluntary, but not everybody files or pays their tax on time.  Penalties for non-filing and non-payments are designed to encourage taxpayers to handle their personal and business tax matter in a timely manner.
  2. Conserves IRS resources -- When people comply with their tax obligations, because they want to avoid paying penalties, that frees up IRS resources to pursue those who are seriously and perhaps criminally avoiding the paying of their taxes.
  3. Provides clear guidance to taxpayers  -- When taxpayers fail to file their tax return or fail to pay their taxes the guidance is clear on the percentage of penalty they will pay for not meeting their tax obligations.
  4. Ensure consistent and fair treatment of the issues -- When a taxpayer fails to file their tax return on time, a 5% penalty of the unpaid taxes can accumulate up to 25% of the unpaid taxes.  
  5. Ensure noncompliant behavior is penalized -- For taxpayers who just do not want to cooperate with the IRS, the penalties are designed to motivate such behavior into compliance.
Now that we know why the IRS charges penalties, we will discuss in the blog about penalty abatement and why a tax professional such as an Enrolled Agent is important in helping you to deal with the IRS.

525 N Cascade Ave
Suite 200
Colorado Springs, CO 80903
(719) 359-8789
(Call for an appointment)

Colorado Springs: Navigating the Maze of Innocent Spouse Relief, Triumph Over Tax Trepidations

Innocent Spouse Relief can feel like an emotional rollercoaster. The maze of taxes brings with it feelings of stress, shame, and vulnerabili...