The IRS may impose penalties on a taxpayer for many reasons. Some include failure to timely file a tax return, failure to timely pay taxes, and failure to accurately depict finances on a tax return. The IRS may also impose penalties on taxpayers who are required to collect, account for, and deposit quarterly employment taxes if the taxpayers fail to do so (known as a Trust Fund Recovery Penalty).
The good news is that the IRS may remove or reduce a penalty imposed on a taxpayer even after it has been assessed. In order to receive this type of tax relief, known as a penalty abatement, the taxpayer must be prepared to demonstrate to the IRS that a penalty abatement is appropriate. The facts and circumstances of the taxpayer’s case are often used to depict why a penalty abatement is a reasonable option. The requirements for penalty abatement differ according to which penalty was imposed, so it is important to consult with a Mississippi tax attorney to determine the best approach to seeking a penalty abatement.
If the IRS has imposed penalties on you and/or your business, the clock is ticking. Contact us at 601-321-1991 today to discuss how we can help you!