IRS PENALTIES & INTEREST

Two Rules-

Any penalty under federal law can be abated (waived - made to go away) if the Taxpayer can assert and prove up "reasonabale cause".  What is reasonable cause?  That can be a little more difficult and many times can be fact sensitive.  Was it out of your control?  Are you blameless?  Was it willful neglect on your part?

Interest on valid tax liability can never be waived.  The IRS has no statutory authority to do such and the federal government is a net borrower every single day via the treasury auction.  They are just adding a "kicker on the interest rate" for their trouble.   

If you have a concern or question surrounding this or other tax issues then feel free to schedule a time to discuss your unique situation.  It is extremely important when asserting a claim of reasonable cause that it be properly presented to ensure the highest possibility of being accepted by the Service and we routinely handle these matters as a part of our tax practice.   

 

To schedule a confidential consultation contact our office at:

(281) 598-0313 (Houston Metro)

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