Professional Tax Firm CTR Advises Taxpayers on Tax Penalties and Interest

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A professional tax firm advises taxpayers on tax penalties and interest that can be incurred for late payments and returns, and how to avoid them in the case of a deadline issue.

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CTR states that there are certain situations in which the IRS penalties can be abated fully or partially and for one or multiple tax years.

CTR’s Glendale tax attorney is advising taxpayers on the tax penalties and interest that can be incurred when payments and returns are sent past their due dates. The IRS has set up financial consequences when deadlines are missed. These can range from an increased payment on back taxes to levies, liens and seizures of assets.

CTR warns that the IRS will attach additional fees to taxpayers filing returns late and paying taxes late. In the case of filing late, the IRS charges 5% of the taxes owed each month up to a limit of 25%. In the case of a late payment, the IRS penalty is ½% of the taxes owed each month up to a limit of 25%. A California resident that has missed the due date for filing can contact their Glendora tax attorney to determine how much they currently owe the IRS. The taxpayer should then make sure to file as quickly as possible to reduce future charges.

CTR states that there are certain situations in which the IRS penalties can be abated fully or partially and for one or multiple tax years. Any taxpayers seeking to receive abatement must have reasonable cause for each year in which a tax return was filed late or a payment was made past its deadline. There are six main cases in which the IRS will allow an abatement of the penalties already awarded. A Michigan resident reached out to their Grand Rapids tax attorney to determine which, if any, of the following cases for removal of penalties applied to them.

CTR has listed six instances for abatement of IRS penalties. The first scenario is death or serious illness of a taxpayer, immediate family, or of the individual (or immediate family of the individual) in charge of executing the return or making the deposit. The next case is one of unavoidable absence of the taxpayer, given that said taxpayer has the sole authority over the return. To determine if an absence is considered unavoidable, or to ensure that the taxpayer has sole authority, a California resident can contact their Hawaiian Gardens tax attorney. The third case is due to a fire or other casualty destroying the taxpayer’s place of business or business records. The fourth situation occurs when the taxpayer is unable to determine the amount owed for uncontrollable reasons. The fifth scenario involves the ability of the taxpayer to make deposits or payments being impaired by civil disturbances. The final case in which a taxpayer can receive an abatement is one in which the taxpayer cannot pay taxes on time, but only if it can be shown that ordinary business care and prudence were exercised during the tax period in question.

CTR’s tax team is familiar with the IRS’ tax penalties and interest that can be applied to a taxpayer when a tax return or payment is made late and the steps required if a taxpayer can receive abatement. Any taxpayers seeking advice or relief from these penalties and interest should contact CTR for help.

CTR offers tax debt resolution and tax services for individuals and businesses across the United States. The company uses a three step program to create personalized strategies to help taxpayers settle their IRS debt. The company offers many services, including: state and federal tax debt resolution, IRS audit defense, tax preparation and bookkeeping.

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Henry Johnson
CTR
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