{"id":120,"date":"2021-03-02T09:38:29","date_gmt":"2021-03-02T09:38:29","guid":{"rendered":"https:\/\/sacramentotaxlawyers.com\/?page_id=120"},"modified":"2022-06-15T21:15:26","modified_gmt":"2022-06-15T21:15:26","slug":"dealing-with-penalties","status":"publish","type":"page","link":"https:\/\/sacramentotaxlawyers.com\/penalty-interest-abatement","title":{"rendered":"Penalty Abatement"},"content":{"rendered":"\n

Tax Penalty Abatement Attorney<\/h1>\n\n\n\n
\"Jin<\/figure>
Jin Kim<\/strong>
Free Consultation<\/strong>
(916) 299-9913<\/a><\/strong><\/div>\n\n\n\n

It’s no secret that tax penalties and interest can lead to significant tax debt. However, a skilled tax penalty abatement attorney<\/a> can help reduce your tax debt. If you have received an assessment of interest and penalties call tax attorney Jin Kim at (916) 299-9913<\/strong> for a free consultation. She can negotiate with the IRS, FTB, CDTFA, and Sacramento County Tax Collector<\/a> and determine whether you qualify for a tax penalty abatement program.<\/p>\n\n\n\n

Tax Penalty vs. Interest Abatement<\/h2>\n\n\n\n

Most people know that back taxes can grow with interest, but some don’t realize that back taxes can also result in penalties. Unfortunately, penalties are common when it comes to IRS audits<\/a>. If you\u2019re going to be assessed with a tax bill, there\u2019s a high chance it\u2019ll include an added penalty. There are ways, however, to remove the penalty from your tax bill. It won\u2019t remove the total assessed amount, but at least it\u2019ll decrease some of the financial burden. <\/p>\n\n\n\n

Since interest is mandated by Congress it\u2019s rarer to get an abatement when it comes to accrued interest with the IRS, but it can happen with other tax agencies such as in the case of California FTB request for abatement of interest<\/a>. (See<\/em> FTB 3701)<\/p>\n\n\n\n

Why Does My Tax Bill Have A Penalty?<\/h2>\n\n\n\n

Penalties are often added by the IRS if you get a tax bill at the end of your audit. A tax bill means that you owe the government money, and the penalty is intended as a form of punishment for depriving the government of that money. Penalties are also intended as a deterrent. The government doesn\u2019t want people to get lax about violating tax laws and this is one way of ensuring this goal. While people might have many different valid reasons why they incurred the penalty, the government rarely takes these reasons into consideration when they compute taxes. However, you can use these valid reasons to have the penalty removed or abated. <\/p>\n\n\n\n

There are actually different types of penalties<\/a>. When you\u2019re assessed for additional taxes, there will be an explanation as to why you owe the government this money. For example, the most common is that your tax returns were inaccurate; you under-reported your income. It could also be as simple as the IRS not believing your justifications for the deductions you claimed. For cases like this, the IRS will add on what is called an \u2018accuracy penalty<\/a>\u2019.<\/p>\n\n\n\n

If the IRS finds proof of fraud, penalties will be among your many worries. Fraud penalties<\/a> are especially high, as they can reach up to 75%. Don\u2019t panic though if you made a huge mistake on your tax return \u2013 so long as it wasn\u2019t done intentionally, it’s unlikely to be considered fraud.<\/p>\n\n\n\n

How Can I Get Rid of the Penalty?<\/h2>\n\n\n\n

There are ways to remove penalties from your tax bill, but it\u2019s not always a guarantee that the IRS will grant your request. There\u2019s no harm in trying, however \u2013 you won\u2019t be punished for asking. The proper term used by the IRS when removing penalties is abatement. In order for the IRS to abate the penalty, you must provide \u2018reasonable cause as to why your penalty should be abated. The reasonable cause<\/a> you provide must be believable and of a serious nature, and it helps if you have supporting documents for it. <\/p>\n\n\n\n

Reasonable Cause<\/h3>\n\n\n\n

Some of the most common accepted reasonable causes, taken from the IRS Manual, are the following:<\/p>\n\n\n\n