For many people, filing and paying their taxes to the Internal Revenue Service (IRS) is a yearly routine with rarely any issues. Unfortunately, every one of us is capable of accidentally not filing our taxes, whether that was because life got in the way or we just forgot about our obligations. Although it may not be intentional, the government takes the failure to file taxes very seriously and may not hesitate to impose consequences.
There are many different types of IRS penalties in Richmond, and an experienced attorney from Whiteford Tax Defense could provide advice, guidance, and representation in your situation. Whether it is a monetary fine or something more severe, our firm has the expertise to work towards a fair resolution for you.
Although the IRS has a long list of penalties it may impose, many of them share common mistakes that taxpayers make when filing and preparing their forms. Generally, these errors are related to lateness, accuracy, and payment, and sometimes, more than one of these may apply to the IRS’s penalty.
For example, a common mistake is missing the due date. Taxpayers who file their tax forms after the due date, or not at all, may receive a failure-to-file penalty. A similar penalty could be assessed if the taxpayer fails to pay the taxes they owe by the due date or if their form of payment fails to convey the funds.
Accuracy-related errors are usually connected to the information provided in the form. Errors in calculating income or when claiming a tax refund or credit could also result in an accuracy penalty.
However, there could be some inaccuracies that go beyond a simple mistake and could result in criminal charges for fraud or tax evasion. The IRS defines fraud as purposefully making false statements or documents connected to a tax form, while evasion is deliberately avoiding paying tax liabilities. Criminal penalties may carry prison time in addition to monetary fines.
No matter what kind of tax consequence you may have in Richmond, it is imperative to discuss the situation with an attorney. A knowledgeable attorney could help deal with the government and figure out a solution for your situation.
Facing a tax penalty is not as devastating as it may feel, as taxpayers have several options. The first is for you to simply pay the penalty. This has many advantages because the monetary fine is added onto any taxes owed and accrues interest for every month it remains unpaid. A payment plan could be available to make it easier.
The IRS does recognize that people may make an honest mistake, so the agency offers the opportunity to dispute a penalty. For the most part, the taxpayer must show that they made the error in good faith or have a reasonable cause for missing a deadline. If you are successful, the IRS could either remove or reduce the penalty.
There are as many different ways of handling these challenges as there are types of IRS tax charges, and a tax lawyer could provide you with support and guidance through the process in Richmond. Having legal representation could also significantly increase your chances of success.
Receiving a penalty notice from the IRS may feel distressing, but an accomplished attorney from Whiteford Tax Defense could help you understand your options. Working with a tax lawyer could help put you on the best path forward.
Our firm is capable of handling all types of IRS penalties in Richmond, so let us help you deal with your penalty. Contact Whiteford Tax Defense and tell us about your tax situation.