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Penalty abatement services in New York
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Penalty abatement is a process by which the IRS or New York may waive or reduce penalties that have been assessed against you. There are many reasons why the IRS may grant penalty abatement, such as if you made a good faith effort to comply with the tax laws, or if the penalty was due to an error or omission on your part.
If you have been assessed a penalty by the IRS, it is important to explore all of your options for administrative relief. One option is to file a request for penalty abatement. To do this, you will need to provide the IRS with information about the penalty, such as the reason for the penalty, the amount of the penalty, and any extenuating circumstances that may have contributed to the penalty.
The IRS will consider all of the information that you provide when making a decision on your request for penalty abatement. If your request is granted, the IRS will waive or reduce the penalty. If your request is denied, you may be able to appeal the decision.
Working with a tax professional like Gary Mehta, CPA, EA can help you understand your options for penalty abatement and increase your chances of success. The tax professionals at Gary Mehta, CPA, EA have years of experience helping taxpayers with IRS penalties. We can help you assess your situation and develop a plan to get the best possible outcome
Remove your IRS or New York tax penalties with our Penalty Removal Services in New York.
TAX PENALTY REMOVAL SERVICES IN NYC
Why did I receive a tax penalty from IRS or New York?
The IRS can assess over 140 different penalties for a variety of reasons. While it's always best to file your taxes on time, there are times when life gets in the way. If you've been penalized for a late filing or payment, you may be able to get the penalty waived if you can show that you had reasonable cause for the failure.
Some common reasons for reasonable cause include:
- Death in the family
- Serious illness
- Inability to obtain records
- Incorrect advice from a tax advisor
- Fire, tornado, flooding, or other natural disaster
This is not an exhaustive list, and the IRS will consider all of the facts and circumstances of your case when making a decision on your request for penalty abatement.
It's important to note that the IRS will not automatically grant penalty abatement. You must file a request for abatement and provide evidence to support your claim. If your request is denied, you may be able to appeal the decision.
Around one-third of all penalties imposed by the IRS are later abated, so you may have a good chance of getting your penalty waived. However, it's important to act quickly. The IRS has a three-year statute of limitations for filing a request for penalty abatement.
If you've been penalized by the IRS, you should contact a tax professional to discuss your options for penalty abatement. A tax professional can help you assess your situation and develop a plan to get the best possible outcome.
Minimize those expensive tax penalties today! Gary Mehta, CPA, EA is penalty abatement provider.
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How can our CPA Firm help you secure penalty relief
Abatement can help you get rid of the penalties that the IRS imposes on you when you are unable to pay your taxes. Most penalties are incurred on unintentional mistakes, often caused by incorrect advice or financial constraints.
The three most common IRS penalties, which make up 74% of all penalties, are:
- Failure to deposit penalty: This penalty is imposed on businesses that have not paid employment taxes by the deadline or have filed them incorrectly.
- Failure to file penalty: This penalty applies to all taxpayers who fail to file their taxes before the annual or quarterly deadline.
- Failure to pay penalty: This penalty is imposed on taxpayers who fail to pay their taxes by the annual deadline.
We have the knowledge and experience to help you challenge these penalties and get them waived. When you choose tax abatement solutions, you have the opportunity to avoid these penalties and move forward without hassle from the IRS.
IRS and New York Penalty Relief Services. We represent you and remove your IRS or NY tax penalties.
eligibility for irs and new york penalty abatements
Prerequisites for First Time Abatement Requests
If you have never had overdue taxes before, you may be eligible for a First Time Penalty Abatement (FTA). FTA is a waiver of penalties that can help taxpayers who have a clean IRS compliance history for the past three years and have accrued penalties due to failure to deposit, failure to file, or failure to pay.
To qualify for FTA, you must meet the following criteria:
- You have arranged to pay or have completed payments for any taxes due to the IRS.
- You have not needed to file a return or had no penalties for three tax years prior to the year you received a penalty.
- You correctly filed returns or filed for a time extension to complete returns.
- You received incorrect oral advice over the phone or in-person from the IRS.
It is important to note that the failure-to-pay penalty will continue to accrue until you pay the tax amount in full. In some cases, you may have an advantage by waiting to request FTA until after you have fully paid the taxes owed.
We can help you file a FTA request and determine if you are eligible. Contact us today to learn more.
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Our Certified Public Accountant's essential best practices to request abatement
If you have been assessed a tax penalty, here are some essential best practices to request abatement:
- Do not pay the penalty yet. Paying the penalty may be seen as an admission of liability, so it is best to wait until you have explored all of your options for abatement.
- Try a First Time Penalty Abatement (FTA) first. This is a policy that allows taxpayers without previous tax liabilities to have their penalties waived, regardless of whether they have reasonable cause. You can request FTA by phone.
- Request reasonable cause in writing. To get documentation of reasonable cause, it is important to get the information in writing, not just over the phone. You can complete Form 843: Claim for Refund and Request for Abatement and include your reasoning for your reasonable cause request.
- Appeal adverse rulings. If your reasonable cause request is denied, you may be able to appeal the decision. The IRS may not have considered your entire financial situation when making their decision, so you may be able to prove that you are justified with further review.
- Include the right information. When you fill out your reasonable cause abatement request, be sure to explain the circumstances outside of your control that caused your noncompliance. You should also provide proof that this event affected your life in other ways. For example, if you experienced an unexpected illness, you should provide a doctor's note and show that you were also unable to work.
- Demonstrate prior compliance. Provide evidence that you have a history of compliance with tax laws. This will help to show that you are not a habitual offender and that you are likely to comply with the law in the future.
- Follow up on abatement requests. Requests for abatement can sometimes get lost within the IRS. Be sure to track your request and check to see if the agency is actively working on it.
The most important step you can take is to get professional help. A tax professional can help you navigate the complex requirements for requesting abatement and increase your chances of success. We can handle the legal issues and communicate with the IRS on your behalf to help you get a swift resolution.
TYPES OF PENALTIES WE ABATE
Below is a small list of penalties we abate out of 140 different penalties
- Failure to file penalty: This penalty is imposed if you do not file your tax return by the deadline. The amount of the penalty depends on how late you file.
- Failure to pay penalty: This penalty is imposed if you do not pay your taxes by the deadline. The amount of the penalty depends on how late you pay and how much you owe.
- Failure to deposit penalty: This penalty is imposed if you do not deposit your employment taxes by the deadline. The amount of the penalty depends on how late you deposit the taxes and how much you owe.
- Civil fraud penalty: This penalty is imposed if you intentionally underreport your income or claim false deductions or credits. The amount of the penalty is up to 75% of the tax you owe.
- Criminal fraud penalty: This penalty is imposed if you willfully attempt to evade or defeat taxes. The penalty is up to $500,000 or five years in prison, or both.
- Negligence penalty: This penalty is imposed if you make a mistake on your tax return that is careless, but not intentional. The amount of the penalty depends on the amount of the underpayment.
- Substantial understatement of income tax penalty: This penalty is imposed if you understate your income tax by more than 25%. The amount of the penalty depends on the amount of the understatement.
- Accuracy-related penalty: This penalty is imposed for certain types of errors on your tax return, such as failing to report all of your income or claiming deductions or credits that you are not entitled to. The amount of the penalty depends on the type of error and the amount of the underpayment.
These are just a few of the many IRS penalties that exist. The specific penalties that apply to you will depend on the circumstances of your case.
If you have been assessed an IRS penalty, it is important to understand your rights and options. You may be able to appeal the penalty or request abatement. A tax professional can help you understand your options and navigate the complex process of dealing with the IRS.
Why hire a tax lawyer to fight your New York and IRS tax penalties for individuals and businesses.
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If you have tax liabilities spanning multiple years, you should focus on getting the largest penalty waived first. Your chances of getting a penalty abatement approved are much higher if you work with an experienced tax professional.
Gary Mehta, CPA, EA has 20 years of experience in tax law. We are fully committed to helping you resolve your tax issues. We have a team of professionals who will work with you every step of the way, from a tax attorney to a case manager to a tax preparer.
We work with the IRS every day, so we know the right strategies and negotiation approaches to get the best possible outcome for you. We will be on your side until your case is closed. Whether that means appealing a decision, helping you file forms, or confirming with the IRS, we will do whatever it takes to help you.
We offer free quote consultations to help you understand your options and how we can help you.
Contact us today to schedule a consultation.
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