NYC based accounting firm serving individuals and small businesses in New York
Professional IRS and New York Tax Penalty Abatement in NYC
Gary Mehta CPA, EA Provides Tax Penalty Removal Services for IRS, New York and Beyond.
Receiving a notice from the IRS or the New York State Department of Taxation and Finance can be one of the most stressful experiences for an individual or business owner. The formal language, the bolded balances due, and the looming threat of mounting penalties and interest can feel overwhelming. Your first instinct might be panic, but your first action should be to take a deep breath and understand that you have options. Tax penalties are not always final.
Welcome to Gary Mehta, CPA, EA, your dedicated partner in resolving complex tax issues. We are a New York City-based accounting firm that specializes in expert tax representation. We don't just file tax returns; we solve tax problems. Our team, led by a Certified Public Accountant (CPA) and an Enrolled Agent (EA), possesses the unique expertise required to communicate directly with the IRS and NYS on your behalf, fighting to reduce or completely eliminate the tax penalties assessed against you. Contact our NY accounting firm today!
This page is your comprehensive guide to understanding the world of tax penalty abatement. We will delve into the who, what, why, when, and how of penalty relief, demystify the process, and show you how professional representation can be the key to securing a favorable outcome and putting your tax worries behind you.
Remove your IRS or New York tax penalties with our Penalty Removal Services in New York.
GARY MEHTA CPA,EA'S Key Insights on Tax Penalty Removal
Erase IRS and New York Tax Penalties: Expert Representation by Gary Mehta, CPA, EA
For those facing a tax notice now, here are the most critical takeaways:
- Penalties Are Not Set in Stone: The IRS abates, or removes, penalties for millions of taxpayers each year. A penalty notice is the beginning of a conversation, not the end of the road.
- "Reasonable Cause" is Your Strongest Defense: If you can demonstrate that your failure to file or pay on time was due to circumstances beyond your control, you have a strong case for penalty abatement.
- First-Time Relief is Available: The IRS has a special provision, the First-Time Abatement (FTA), which can provide an administrative waiver for taxpayers with a clean three-year compliance history.
- Professional Representation Matters: Navigating the bureaucracy of the IRS and NYS is complex. Working with an experienced tax professional like a CPA or EA dramatically increases your chances of success. We speak their language and know the strategies that work.
- Don't Pay a Penalty You Plan to Dispute: Paying a penalty can sometimes be interpreted as an admission of liability. It's crucial to explore your abatement options before you pay the assessed amount.
- Interest Follows the Tax: A major component of your tax bill is often the interest charged on unpaid tax. While penalty abatement doesn't automatically remove interest on the base tax owed, it does remove any interest that has accrued on the penalty itself, which can lead to significant savings.
Let us make your tax penalties disappear. Gary Mehta, CPA, EA is here to help.
Why Did I Receive a Tax Penalty from irs or new york?
Watch Your Tax Penalties Disappear with Gary Mehta, CPA, EA
The IRS can assess over 140 different types of penalties, and New York State has its own set of rules. While this sounds daunting, most penalties fall into a few common categories. Understanding why you received a penalty is the first step toward building a defense.
The Failure to File Penalty
This is assessed when you do not file your tax return by the due date (typically April 15th, or the extended deadline if you filed for one). This penalty is often quite severe, calculated as a percentage of the unpaid tax for each month or part of a month that the return is late.
The Failure to Pay Penalty
This penalty applies if you don't pay the tax shown on your return by the due date. The IRS charges this penalty even if you filed on time. It accrues monthly on the unpaid tax balance, making it critical to address quickly.
The Accuracy-Related Penalty
If you underreport your income or claim deductions or credits you're not entitled to, the IRS may assess an accuracy-related penalty. This is often a 20% penalty on the portion of the underpayment of tax.
The Underpayment of Estimated Tax Penalty
This is one of the most common and misunderstood penalties. If you are self-employed, a freelancer, or receive significant income not subject to paycheck withholding (like investment income), you are required to make quarterly estimated tax payments. If you don't pay enough tax throughout the year via these estimated payments or withholding, you will likely face an estimated tax penalty, even if you pay the total amount owed when you file your return.
The Failure to Deposit Penalty
This penalty is for business owners who fail to deposit their employment taxes (like Social Security, Medicare, and withheld income tax) on time, in the right amount, or in the right way. The IRS takes employment tax obligations very seriously.
Minimize those expensive tax penalties today! Gary Mehta, CPA, EA is penalty abatement provider.
Your Path to Relief: What is IRS and NYS Penalty Abatement?
How can our CPA Firm help you secure penalty relief
Penalty abatement is the formal process of requesting that the IRS or New York State remove penalties that have been charged to your account. It is a form of administrative relief that taxpayers can seek under specific circumstances. It is not forgiveness of the tax itself—you are still responsible for the underlying tax owed—but it can eliminate the punishing additions that often make a tax bill unmanageable.
A successful penalty abatement request requires a well-reasoned, well-documented argument. You must convince the tax authority that you should not be held liable for the penalty. There are three primary avenues to achieve this.
1. First-Time Penalty Abatement (FTA)
The IRS recognizes that even diligent taxpayers can make a mistake. The First-Time Abatement policy is a powerful tool for taxpayers who have a good compliance history. To qualify for FTA, you must generally meet these criteria:
- Filing Compliance: You have filed, or filed an extension for, all required tax returns.
- Payment Compliance: You have paid, or arranged to pay (e.g., through an installment agreement), any tax due.
- Clean History: You have not had any penalties for the three tax years prior to the year you received the penalty.
If you meet these conditions, you may be able to have penalties for Failure to File, Failure to Pay, and Failure to Deposit waived, regardless of your reason. We can often request this on your behalf directly over the phone with the IRS, making it the fastest and simplest path to relief when you qualify.
2. Abatement for "Reasonable Cause"
This is the most common defense against a tax penalty. If you don't qualify for FTA, you can still request abatement if you can show you had reasonable cause for failing to file or pay on time. "Reasonable cause" means you exercised ordinary business care and prudence but were nevertheless unable to meet your tax obligations.
Common situations that may constitute reasonable cause include:
- Death, Serious Illness, or Unavoidable Absence: This applies to you or a member of your immediate family.
- Fire, Casualty, Natural Disaster, or Other Disturbance: An event that destroyed your home, business, or records.
- Inability to Obtain Records: You were unable to get the necessary documents to file your tax return despite your best efforts.
- Incorrect Advice: You relied on incorrect advice from a competent tax advisor or from the IRS itself.
- Ignorance of the Tax Law: This is rarely accepted, but in a very complex or new area of tax law, it can sometimes be a factor if supported by other facts.
Proving reasonable cause requires a detailed, written explanation and supporting documentation (e.g., doctor's notes, hospital records, insurance claims). This is where the expertise of a tax professional becomes invaluable in crafting a persuasive argument.
3. Statutory Exceptions and Errors
In some cases, a penalty can be removed because of a specific provision in the tax law (a statutory exception) or because the IRS made a mistake in assessing it. This is less common but is always an area we investigate for our clients. For example, the law provides special rules for certain taxpayers, and if the IRS misapplies them, the penalty is invalid.
IRS and New York Penalty Relief Services. We represent you and remove your IRS or NY tax penalties.
How Our CPA Firm Secures Penalty Relief for You
Achieve Tax Penalty Relief with Representation from Gary Mehta, CPA, EA
Facing the IRS or New York State alone is a daunting prospect. The rules are complex, the agents are trained negotiators, and it's easy to say or do something that inadvertently harms your case. As your representative, Gary Mehta, CPA, EA, handles the entire process from start to finish, leveraging our expertise to achieve the best possible outcome.
Why Hire Us Over a Typical Tax Preparer or Going It Alone?
Gary Mehta holds the dual designation of Certified Public Accountant (CPA) and Enrolled Agent (EA).
- A CPA license demonstrates broad expertise in accounting, which is critical for ensuring your underlying tax return is accurate.
- An EA is a federal license granted specifically by the IRS, bestowing the right to represent taxpayers before the IRS in all 50 states on any tax matter. An EA's expertise is purely in taxation.
This powerful combination means we understand not just the tax law, but also the accounting principles behind your numbers. We don't just fill out a form; we build a comprehensive case. While some may search for a "tax lawyer" or "tax attorney," a qualified CPA and EA like Gary Mehta is often the most effective and efficient professional for resolving penalty issues.
Our Proven Penalty Abatement Process
- Confidential Consultation and Case Review: We start by reviewing the notices you've received and discussing the full history of your situation. We analyze your prior year tax returns and compliance history.
- Strategic Planning: Based on our review, we determine the strongest path forward. Do you qualify for First-Time Abatement? Is Reasonable Cause our best argument? Are there errors in the IRS's assessment?
- Power of Attorney: We will have you sign a Form 2848, Power of Attorney, which authorizes us to speak directly to the IRS or NYS on your behalf. From this point forward, you no longer have to talk to them. We take over all communications.
- Case Preparation and Submission: We meticulously prepare the abatement request. For a Reasonable Cause request, this involves drafting a compelling narrative, referencing relevant tax law and internal IRS procedures, and assembling all supporting documentation into a professional package. This is often done using Form 843, Claim for Refund and Request for Abatement.
- Proactive Follow-Up and Negotiation: We don't just submit the request and wait. We track its progress and communicate with the assigned IRS agent. We answer their questions and advocate for your position.
- Handling Appeals: If the initial request for abatement is denied, it's not over. We are experienced in navigating the IRS appeals process, which provides a fresh look at your case by an independent office within the IRS.
Expert penalty removal in NYC. Contact Gary Mehta CPA, EA for tax relief. #taxrelief #CPA
Get Relief for IRS and new york Penalties Nationwide
Serving Taxpayers Across New York City and Beyond
Tax problems don't respect borough lines. Our firm is proud to provide expert representation and penalty abatement services to individuals and businesses throughout the five boroughs and the greater metropolitan area.
- Manhattan: From the complex business transactions in the Financial District and Midtown to the unique needs of freelancers and small businesses in the East Village and Chelsea, we provide sophisticated tax help.
- Brooklyn: We support the vibrant entrepreneurial community across Brooklyn, helping artists in Bushwick, restaurant owners in Williamsburg, and professionals in Downtown Brooklyn resolve their tax issues.
- Queens: We serve the diverse population of Queens, offering tax penalty relief to residents and businesses in Flushing, Astoria, Long Island City, and beyond.
- The Bronx and Staten Island: Our services extend to every corner of the city. We are committed to helping taxpayers in The Bronx and Staten Island navigate their IRS and NYS tax challenges.
- Nationwide Representation: As an Enrolled Agent, Gary Mehta can represent taxpayers in any state. If you have a federal IRS issue, we can help you no matter where you live.
IRS and New York Penalty Removal in NYC including Manhattan, Brooklyn, Queens and more!