Lloyd Conley, MBA, EA, The Woodlands, TX helps taxpayers who have civil issues with the IRS; such as Collections, non-filing, penalties, non-payment, Trust Fund Penalties, payroll tax issues, etc.
When a taxpayer gets a letter from the IRS proposing or assessing additional taxes, plus penalties and interest, its like adding insult to injury. It can really ruin your day! Many taxpayers will simply pay or agree to pay the balance due thinking that there is no alternative. Not true! There could be several reasons why they won’t have to pay all or part of the assessment:
1. The assessment is incorrect.
2. Penalties can be abated or removed, even if the tax assessment is correct.
3. That in turn can reduce penalties and interest, especially if the correct balance due is $0!
For example, there could be Reasonable Cause under the Internal Revenue Code for reducing or eliminating penalties. Here are a few examples of Reasonable Cause:
1. Death or Serious Illness ... I know, right?!
2. Fire, casualty, or natural disaster
3. Can’t obtain records
4. Relied on erroneous advice from a tax professional
5. Relied on advice from the IRS
6. The Taxpayer was ignorant of the law, etc.
Watch out though! The criterion for establishing Reasonable Cause is a bit more tedious and involved than a casual assertion. What is a taxpayer to do?
1. If the amount is nominal and not worth the cost to fix, just pay it.
2. If the amount is substantial, see a tax professional who can represent you before the IRS: Attorneys, CPAs, and Enrolled Agents are the only professionals who can do this. Not your local tax preparer. Attorneys and CPAs are licensed by state. Enrolled Agents are licensed by the IRS and can represent USA taxpayers worldwide in civil matters ONLY.
3. The results can be substantial savings in tax, penalties and interest. Why pay more than is necessary!
Contact Lloyd Conley EA
10603 W Sam Houston Pkwy N, Ste 225
Houston, TX 77064