- Help! I filed my tax returns but did not have the money to pay. Do I have options?
- Does Penalty Abatement get my penalties and interest waived from my tax account?
- How do I stop the IRS from garnishing my wages, levying my bank account, or seizing my assets?
- What are the documents that the IRS will need to review my case?
- I heard the IRS can put you in jail for not filing tax returns. Is that true?
1. Help! I filed my tax returns but did not have the money to pay. Do I have options?
The IRS relies on taxpayers to be voluntarily compliant. They allow each citizen to report their income freely and voluntarily and to calculate their tax liability and file their taxes on time. You’ve done your part by filing on time, and the IRS has programs and services available for taxpayers that owe but can’t afford to pay. Back to Top >>
2. Does Penalty Abatement get my penalties and interest waived from my tax account?
Penalties can be abated if you have “reasonable cause” for not being compliant with the IRS. “Reasonable cause” relief will only be granted when the taxpayer exercises ordinary business care and prudence in determining their tax obligations but still failed to comply with these obligations. They may include:
- Death of a family member
- Serious health problem
- Bad or erroneous financial advice
- Flood, hurricane, fire or other natural disaster
- Theft of funds, including embezzlement
- Lost or destroyed records
- Divorce that caused extreme stress and deteriorated your financial condition
- Unemployed for an extended period of time
- On a fixed income or retired
- Caring for another person and the financial strain this is placing on you
Your application for a penalty abatement will be reviewed by a revenue officer and it is entirely up to the discretion of this officer to make the final decision. Back to Top >>
3. How do I stop the IRS from garnishing my wages, levying my bank account, or seizing my assets?
You must respond promptly to any notice you may receive from the IRS. The IRS will not garnish wages, levy your bank account, or seize assets without providing “ample” warning. The next step is to stay in compliance with the IRS, get up-to-date on tax filings and payments, and the IRS will have no need to garnish your wages or levy your bank account. Back to Top >>
4. What are the documents that the IRS will need to review my case?
The Internal Revenue Service requires paycheck stubs, bank statements, utility bills, mortgage or rent payments and investment documents; this will vary on a case-by-case basis. Back to Top >>
5. I heard the IRS can put you in jail for not filing tax returns, is that true?
Intentionally not filing a tax return is illegal and can result in a punishment of up to one year in jail and a $25,000 fine. Back to Top >>