IRS Tax Penalty Abatement of Michigan
IRS tax penalty abatement refers to the reduction of penalties imposed on taxpayers who fail to comply with one or more provisions of the Tax Code or the Treasury regulations. Tax penalties may be as significant a burden as the underlying tax itself.
Our IRS penalty abatement work with Detroit area taxpayers has demonstrated to us that the burden imposed by IRS penalties is greater now than ever. This is hardly a surprise, as the number of tax penalties has increased in recent years. The Internal Revenue Code now gives the Internal Revenue Service the power to impose more than 140 distinct tax penalties, so there's a tax penalty for just about every type of error or omission in connection with your taxes. Tax penalties exist to "encourage" taxpayers to follow the law.
The 5 Types of Tax Penalties that qualify for IRS penalty abatement:
- Accuracy-related penalties
- Penalties for tax fraud
- Penalties for under-payment of tax
- Penalties for filing late or failing to file tax returns
- Combined penalties.
If you fail to file your tax return on time, or worse, at all, you will receive a tax penalty. The "failure to file" penalty starts at 5% of the amount of tax owed and it may even reach as much as 25% of the total tax due. As you would expect, the civil penalties for fraud are quite severe as well, reaching up to 15% per month, with a maximum tax penalty of 75% of the amount of tax owed, but of course with respect to fraud, there is the potential for jail time as well, so it's important to have proper representation to ensure that information is shared with and presented to the IRS judiciously.
To make matters worse, tax penalties are cumulative so you may find that multiple penalties will be applied to a single tax return or year. The IRS has many ways to collect tax penalties and our Detroit-area clients have come to us to reduce their IRS tax penalties because of one or more of the following reasons:
The IRS may file a public tax lien against you and or your assets, preventing you from disposing of your assets without paying your tax and your tax penalties, which may resulting in your being unable to get a job, buy a house or a car, finance your kids' education and own assets in your own name. Sometimes, this creates a vicious cycle where you can't pay the tax and penalties because you can't sell liened assets that you would otherwise be able to sell to satisfy your back taxes.
IRS Wage Garnishment
The IRS can even take your wages directly from your employer to apply towards your past due tax obligations. Once your employer has garnished your wages there's nothing you can do to get that money back.
IRS Notices, Summons and Seizures
The IRS can issue collection letters, notices and summons' to you, and they can even communicate directly with your neighbors and even your employer. Like any tax problems, IRS tax penalties cannot be ignored, but rather must be acted upon quickly.
Consult our IRS Audit Representation Experts Today
Michigan Pure Tax Resolution specializes in IRS penalty abatement and we'll get started on your case right away. We have 2 convenientl locations in Milford and Troy, MI, and we would welcome the opportunity to meet with you in person to discuss IRS penalty abatement and other tax resolution strategies to help resolve your IRS tax problems. Please contact us for a FREE consultation. (248) 329-1160