Services: Relief from Penalties and Interest (Request for Penalty Abatement)
When you file a tax return late or have unpaid liability, the IRS will assess substantial penalties along with interest on the penalties. Unfortunately, penalties and interest often constitute a huge portion of the total liability. If appropriate, penalties and related interest can be abated or removed. Where a taxpayer has filed his or her tax return late, or is unable to pay his or her tax liability, but has a legitimate reason for doing so, he or she may file a Request for Penalty Abatement Based Upon Reasonable Cause.
A Request for Penalty Abatement Based Upon Reasonable Cause is a legal argument we prepare and file with the IRS that discusses the facts and circumstances that resulted in the late filing of your tax return or the unpaid tax liability. In evaluating a Request for Penalty Abatement, the IRS considers the specific facts and circumstances in each case.
Case Study: A husband and wife moved to Las Vegas because the warmer climate was suggested by their doctor. The wife developed a gambling addiction not at the casinos, but at the local grocery store where they had slot machines. The wife steadily gambled the husband’s pension money until it was gone. Unfortunately, the husband did not realize that his wife had a gambling addiction until it was too late. The tax returns as filed did not list the pension or gambling income. The IRS assessed substantial tax, penalties and interest against our taxpayers. Our taxpayers hired Patrick T. Sheehan & Associates who negotiated the abatement of penalties and interest, resulting in a substantial reduction in their tax liability. Frequently, gambling, alcohol, drugs or a terrible tragedy are factors that cause IRS problems. Patrick T. Sheehan & Associates frequently negotiates the reduction or elimination of penalties and interest in these cases.
Patrick T. Sheehan & Associates, Attorneys at Law, P.C., has successfully obtained relief from penalties and related interest for its clients in many cases since its inception in 1991. The abatement of penalties and interest can total many thousands of dollars. Some examples where penalty relief may be appropriate include a death in the family, serious illness, gambling, alcohol or drug addiction, fires, floods or theft.
If the IRS has assessed penalties against you, call Patrick T. Sheehan & Associates.
1-877-4-IRS-LAW