525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Do You Owe the IRS Money That You Can’t Pay? Are You a Year or More Behind in Filing Your Income Tax Returns? Are You Behind in Your Payroll Tax Filings or Payments? Our Tax Relief services and Tax Resolution assistance can help you get tax relief!
Showing posts with label reasonable cause. Show all posts
Showing posts with label reasonable cause. Show all posts
Wednesday, July 24, 2024
Monday, July 1, 2024
Colorado Springs: The IRS is Charging Me a Penalty. How Can I Get the Penalty Abated?
The IRS charging you a penalty? Did you file your tax return late? Did you not pay your federal income tax on time? Did you fail to pay your taxes at all? If you answered 'yes' to any or all of these questions, then do not be surprised if the IRS is charging you a penalty. The Internal Revenue Code Section 6694 allows the IRS to charge penalties for taking unreasonable positions, reckless conduct, and/or willful conduct.
When the IRS charges a penalty, what options are available? Taxpayers can request and receive penalty abatement or removal of penalties under conditions. Consulting with an Enrolled Agent, (EA) is wise to help you navigate through the process of obtaining penalty abatement.
What are the types of Penalty Abatement?
First-Time Penalty Abatement (FTA): Available to taxpayers who have a clean compliance history for the past three years and have not previously requested penalty abatement
Reasonable Cause Abatement: If you can demonstrate that your failure to comply was due to circumstances beyond your control, such as natural disasters, serious illness, or other significant life events.
Administrative Waivers: Sometimes, the IRS provides administrative relief for specific groups of taxpayers or under certain conditions.
A tax professional like Marcelino Dodge, EA, CTRC, can review your tax records and review your eligibility for a specific type of penalty abatement. After this review, the gathering of documents is required to help with the preparation of the necessary forms for submission to the IRS. Your request is then submitted to the IRS.
You will need to follow-up on the request after a reasonable period of time. Patience is important as the IRS can take a while to process the request.
525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com
Friday, June 21, 2024
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
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