| In general, people feel uneasy when confronted with | | | | cancellation of some or all of your IRS tax penalties if |
| possible IRS penalties like the payment of back taxes. | | | | you can prove that there was no deliberate negligence |
| Unbeknownst to them, there are actually guidelines and | | | | and intention of defrauding the IRS on your part. When |
| procedures that will help them contend these issues. | | | | this happens, it is called an IRS abatement of penalties. |
| These include negotiations and setting up of installment | | | | The IRS actually makes as up to $15 billion, on the |
| plans, all directed at eventually dismissing probable | | | | average, on collection from penalties alone. On top of |
| penalties and back taxes. | | | | the fact that the IRS earns a considerable amount of |
| To review, taxpayers may be obliged to incure IRS | | | | money from this, the fact is, this is too heavy a load |
| penalties in circumstances like not filing tax returns, | | | | for the taxpayers. |
| incorrectly filing of taxes, misleading the IRS and not | | | | What makes circumstances worse for many people is |
| paying quarterly taxes. For information on the | | | | that when a penalty is given to them, that amount gets |
| complete list of penalties, including the processes on | | | | added to the total amount of tax debt. As a result, the |
| penalty abatement and assessment, you may refer to | | | | new larger sum becomes the basis of the interest. |
| the Penalty Handbook. It becomes clear then that | | | | The interest that the IRS charges on any tax debts is |
| aside from the periodic collection of taxes, the | | | | generally quite large with levels as high as 25%. Over |
| government also earns through the interests collected | | | | a very short period of time, this can actually double or |
| from delinquent taxpayers. | | | | even triple the total amount of debt, making it |
| The government provided taxpayers with several | | | | significantly more difficult for the taxpayer to settle the |
| courses of action and made the process of dismissing | | | | entire amount. |
| tax levies relatively easy because it wants to be sure | | | | When you receive an IRS notice stating a possible |
| that penalties assessment is done in the right manner. | | | | problem resulting from some tax dues, you can |
| Compared to the outrageous battle it once was, the | | | | actually respond and request from them a cancellation |
| process is now friendlier. | | | | of these penalties. This action indicates the beginning of |
| Taxpayers are educated with the basics of interests, | | | | the penalties abatement process, which is a right all |
| levies and penalties abatement when they make time | | | | taxpayers can take. If proven that you did not willfully |
| to browse through the IRS Penalties Handbook. With | | | | defraud the IRS, the "good faith exception clause" in |
| this set of information, the risks of being penalized are | | | | the provisions of IRS penalties can actually be used. In |
| significantly decreased. | | | | summary, despite the fact that IRS penalties pose a |
| One of the primary advantages of the IRS Penalty | | | | threat to you and your assets, their effects can be |
| Policy Statement is that IRS penalties are technically | | | | neutralized, if not altogether eliminated, through the use |
| no longer automatic. You may, in fact, qualify for a | | | | of legal alternatives. |