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We’ve consulted on over $16 billion in tax debt since 2007 - See what real people are saying about how we changed their life

Racking Up IRS Tax Penalties Is Bad News.

The good news? Our tax experts are pros at dealing with tax penalty issues.

$26,515,093

in total civil penalties were assessed by the IRS in 2017.

$12,574,391

in civil penalties were abated (or lessened) for reasons including discharge and forgiveness.

42%

of all IRS tax penalties were for individual, estate, and trust income taxes.

Why choose Tax Defense Network for help with IRS tax penalties?

A+ rating by the Better Business Bureau

Work with trusted professionals who care about bringing you peace of mind.

Licensed tax professionals

With a decade in business, our extensive expertise is at your service.

Free initial consultation

Commitment-free, no-cost consultation with a tax professional to get started.

Easy, affordable, and customized to you

Personalized solutions that fit your life and your budget.

What We Do

Consultation

When you call for your no-cost, no-commitment consultation, we’ll discuss your current financial and tax debt situation, including any IRS tax penalty and interest issues.

Investigation

We’ll look further into your tax debt and formulate personalized recommendations for how to deal with your IRS tax penalties.

Resolution

Whether we decide to pursue IRS tax penalty forgiveness or another avenue of IRS tax penalty abatement, we’ll work with the IRS on your behalf to get you the resolution you deserve. You’ll be kept informed at every step and will always be able to reach us by phone or email.

“I was in a situation where I owed more penalties and interest than back taxes, and I had let it go on far too long due to financial constraints. The IRS became more aggressive as the statute of limitations approached, so I contacted TDN. They always called or emailed when they said they would and followed up at every point in the process. TDN was able to obtain a much better resolution than I anticipated, so I have to say they exceeded my expectations.”

- Dennis W.

Common Questions About IRS Tax Penalties

Q: What are the different IRS tax penalties?
There are so many types of IRS tax penalty, it can be hard to keep them all straight. Here are some of the most common penalties:
  • IRS penalty for late filing: This penalty occurs if you don’t file your return by the due date or extended due date if you have an approved extension.
  • IRS penalty for late tax payment: This penalty is incurred when you don’t make your tax payments in time. This includes the IRS estimated tax late payment penalty.
  • IRS penalty for underpayment of taxes: This penalty is charged when you don’t pay enough taxes for the year.
  • IRS accuracy-related penalty: The IRS charges this penalty if they discover inaccuracies in your return that lead to an increase in your tax liability.
  • IRS payroll tax penalties: These penalties are charged mainly to employers who fail to collect, report, and pay their payroll taxes appropriately.
Q: What are the consequences of IRS tax evasion penalties?

The penalty for not filing tax returns can be financially burdensome. The IRS assesses not only a punitive charge but adds interest for failure to file tax returns, which accrues on any liability not paid by the filing deadline. These charges are difficult to get removed and can quickly inflate the total debt you owe.

If you don’t file a return, you haven’t got away with anything yet – the IRS can file for you through a Substitute for Return (SFR) in addition to charges.

Other consequences beyond monetary fees include IRS liens, bank levies, and wage garnishment. Among these IRS tax fraud penalties, the most severe but possible if you fail to file tax returns is imprisonment for each year that is unfiled.

Q: What do I need to do to not incur any tax penalties?
If you’re wondering how to avoid tax penalties, look no further. Here are some things you can do:
  • Many Americans have been there – things get busy and you run a little behind on submitting your return. If you’re unable to file your return by the April deadline, you can file for an extension.
  • If you filed on time but are unable to pay, you can apply for IRS payment plans like an installment agreement that can help reduce your penalty.
  • Think you made mistakes in your filed return? Amend it ASAP to avoid the 20 percent accuracy-related penalty.
  • When aggressive IRS collections have begun, or you have several years that are unfiled, it’s time to seek professional help from a licensed tax professional to negotiate with the IRS on your behalf.
Q: Can I pay my tax penalty online?
Yes. You can pay your IRS tax penalties online alongside your tax debt. You can make payments online using a variety of different methods including Direct Pay, debit or credit card, and the Electronic Federal Tax Payment System.
Q: Can I pay my tax penalty in installments?
It is possible for you to pay your tax penalty in installments, but you will have to set up an agreement to do so first with the IRS. Tax Defense Network professionals are skilled at getting you an IRS penalty payment plan that works for you.
Q: Are tax penalties and interest deductible?
No, any federal tax penalties and interest are not deductible.
Q: Can tax penalties be waived?
Tax penalty relief may be available to you, which can include tax penalty waiving. The best way to get your tax penalties waived is to consult with an experienced tax professional, who can lay out your options and help you achieve the desired solution.
Q: What is IRS tax penalty abatement?

Tax debt can be an unwelcome and overwhelming financial strain, often leading to sleepless nights and worries about what the IRS will do next. One option to mitigate the financial strain is to submit an IRS tax penalty abatement form (Form 843, Claim for Refund and Request for Abatement), which can reduce your liability if approved. Even with abatement, interest attributable to the unpaid debt will remain.

There are two main types of IRS tax penalty abatement:

  1. First-time Abatement: Taxpayers with a good compliance history may qualify for a one-time abatement of late filing and late payment penalties. The IRS will look at the prior three years, and if there are no instances of late payment or late filing, abatement may be granted. Accuracy-related penalties do not qualify for this type of abatement.
  2. Reasonable Cause Abatement: Life happens. The IRS will consider forgiving late payment, late filing, and accuracy-related penalties based on reasonable cause. So, you’ll have to explain what circumstances led to the late filing, payment, or inaccuracy of your return (and there’s a high standard).

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