The IRS assesses penalties to taxpayers for various reasons; one such reason is to deter taxpayers from making the same late payment mistakes in the future. Unfortunately, applying penalties to those who cannot afford to pay them just puts the taxpayer further and further into debt. Taxpayers who are severely burdened by tax penalties can feel pushed to the point of putting their families and themselves into extreme hardship in an effort to make a dent in their tax liability.
What most people don´t know is that many of these penalties can be reduced or completely removed, and the IRS even has guidelines which allow taxpayers in certain circumstances to be relieved of 100% of all penalties. This is called a “reasonable cause” grounds for penalty waiver. If you are pursuing penalty abatement, we will request that you write our firm a letter detailing your life circumstances at the time the penalties were incurred so we can compose a “request for penalty abatement” for the IRS.
To schedule a free consultation with one of our tax experts and to find out if you’re eligible for partial or total penalty abatement, contact us today.
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When Lorraine S. a retired widow from Sterling Heights, MI. first lost her husband in 2010, she inherited his business, but was completely unaware of the trust return filing requirements. She went on to hire a different Tax Professional to prepare the necessary trust returns. The Tax Professional was unable to prepare those returns, and Lorraine was assessed late filing penalties adding up to $34,580.
After meeting with Mike, our team of tax specialists applied to the IRS for a waiver due to “reasonable cause”. The IRS agreed and the late filing penalties were abated in full! She can now put her mind at ease knowing that she will not have to pay this large tax debt on a fixed retirement income.
After asking Lorraine about her experience with the Franskoviak team, she responded “I was very pleased with the service from Franskoviak & Company, but more importantly with the result. Outstanding!”
Penalty Abatement& Installment Agreement
Ron, a small business owner ran into some hard times with the economic downturn. At one point management was left with a choice, to pay their employees and bills or pay their payroll taxes. They were able to keep everyone employed, but now the company was looking at growing penalties and interest from the IRS payroll tax debt and a lien had been filed against the company by the IRS.
We reviewed the company’s finances, and knowing that a few years ago the economy was not as forgiving, we decided to negotiate with the IRS. We worked with the IRS to get the penalties abated and start a reasonable payment plan. After the work was completed we were able to get $46,575 in penalties removed.
Ron’s words, “I really had no questions, everything was explained, and I am very satisfied with the outcome.”
Penalty Abatement & Installment Agreement
Jimmy is a contractor and needed help with his commercial real estate business, we filed his tax returns and received $50,000 in tax and penalty abatement’s, then we set him up on a monthly payment plan of $159 per month for 10 years, a savings of over $129,000.
Owed the State of Michigan $521,231 due to unpaid sales taxes. We negotiated a penalty abatement of over $98,000.
Andrew’s Medical Practice ran into tax trouble as a result of unpaid payroll taxes, and not filing his tax returns. We filed his returns and we requested penalties abated and received $170,000 in tax, penalty and interest abatement’s.
Frequently Asked Questions About The IRS and Penalty Abatement (FAQ)
What is an Administrative Appeal?
An administrative appeal is the process in which a senior official or attorney, not necessarily a judge, within the agency will review the initial decisions made by FOIA regarding your case and determine whether to uphold or reverse that decision.
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