IRS Penalties – business

The IRS can assess penalties against a business for a variety of reasons including failing to file a tax return or underreporting taxes. There are too many different types of penalties to list here however there is one trait that they all have in common; they are excessive. If you are facing IRS penalties it can seem like a losing battle. There is hope. Tabb & Associates specialized in reduction and/or full removal of IRS penalties that can save you thousands of dollars.

Why Does the IRS Assess Penalties?

The Internal Revenue Manual details when penalties are assessed and how they are calculated. Most IRS penalties are assessed automatically however some are at the discretion of the IRS. IRS Penalties can be assessed for simple reasons such as failure to file a tax return or failure to make a payment. They can also be assessed for filing a fraudulent tax return or bouncing a payment to the IRS. Tabb & Associates can walk you through your unique IRS Account Transcripts to determine what penalties have been assessed and how they were calculated. Then we can put together a plan of attack to remove these penalties from your account.

How are penalties calculated and why are they so excessive?

The method behind the calculation of penalties is confusing and oftentimes you will not know how much you are going to owe until the penalties have already been assessed. IRS penalties can often be excessive with the rationale being that it discourages businesses from non-payment of taxes or non-filing of tax returns.

How do I remove IRS penalties?

There are many programs available to help with abatement of IRS penalties. Often times, businesses can file a penalty abatement request with the IRS. If you can show the IRS “reasonable cause” as to why penalties should be abated and the assessment of penalties was due to something outside of your control a penalty abatement can be negotiated with the IRS. The first step begins with an understanding of the individual facts of your case and developing a strategy that will secure the penalty abatement that you need.