Do the interest and penalties keep mounting up? The IRS adds penalties and interest to the amount owed to encourage compliance with the tax laws. In many cases, taxpayers can afford to pay the tax due but cannot pay the huge amount of penalties and interest owed due to a reasonable cause. Reasonable cause is based on all the facts and circumstances in your situation. The tax professionals at BAYSHORE CPA’S, P.A. located in Mooresville, NC can sort out the facts of your situation and determine if a reasonable cause exists.
Typical Situations
The IRS will consider any sound reason for failing to file a tax return, make a deposit, or pay tax when due. Sound reasons, if established, include:
- Fire, casualty, natural disaster or other disturbances.
- Inability to obtain records.
- Death, serious illness, incapacitation or unavoidable absence of the taxpayer or a member of the taxpayer’s immediate family.
- Other reason which establishes that you used all ordinary business care and prudence to meet your IRS tax obligations but were nevertheless unable to do so.
Note: A lack of funds, in and of itself, is not reasonable cause for failure to file or pay on time. However, the reasons for the lack of funds may meet reasonable cause criteria for the failure-to-pay penalty.
Interest cannot be abated for reasonable cause. Interest charged on a penalty will be reduced or removed when that penalty is reduced or removed. If an unpaid balance remains on your account, interest will continue to accrue until the account is paid in full.
Trust the tax professionals at Bayshore CPA’s, P.A. to negotiate a settlement to fit your current economic situation that often involves getting your penalties abated or significantly reduced. You stand a greater chance of resolving your tax debt with the penalties removed or reduced.
Your peace of mind is our motivation. To find out if you have reasonable cause for a penalty abatement:
Call our office now located in Mooresville, NC at 704-660-9317 to schedule your consultation.