How A Tax Resolution Attorney Can Help You

The end of the year seems to be the busiest time for most Americans. After Thanksgiving ends, the Christmas and Hanukah holidays begin and before you know it a new year has started. At the start of every New Year, accounting departments nationwide start their scramble to finalize important tax documents by the fast approaching deadlines. With late January and February comes the daily trip to the mailbox for tax forms from everyone from your employer to your mortgage holder. Once you have all the documents needed to prepare and file taxes, a trip to a tax professional soon follows. The goal is to receive a refund, or at least not have to make additional tax payments to the IRS. For those that do owe though, failure to pay can result in severe fines and penalties. In today’s economy, it can be a real challenge to include a payment when you send in your return and this leads some taxpayers to put off filing. If this is your circumstance, call a tax resolution attorney for help. Skilled attorneys help by negotiating with the IRS for reduced payments, settlements, or even outright elimination of your tax debt liability.

If you are able to file on time though, the IRS has this to say about tax penalties:

  • Pay at least 90% of the amount due by the date it is due to minimize the penalty assessed.
  • Typical penalties add up to 5% of the amount due, and this amount accumulates each month.
  • In addition to these penalties, the IRS adds interest at 3% per year, compounded daily and a late payment penalty of 0.5% each month.

Interest that is compounded daily quickly adds up, and with fees and penalties like these, it’s no wonder a small tax obligation can become an overwhelming tax debt in a very short amount of time. To avoid finding yourself owing the IRS significant debt on top of the tax liability assessed, you should enlist the help of a strategic partner. The IRS will consider settling your tax debt for less than what is owed, but you must ask them to do so. There are options available to you, and you should approach the IRS with a trained professional by your side. Staying on top of your tax situation helps avoid an audit or other investigation, and shows the IRS you are serious about resolving your tax issues.

Failure to file your pay taxes can lead to serious tax penalties. By the time you realize you have a problem, it is likely too overwhelming to handle on your own. Let the professionals at Nielsen Law Group help you negotiate with the IRS. Call (480) 888-7111 or submit a web request here.