Unless your tax liability is settled in full, your IRS problem is always escalating because penalties are evaluated on your tax debt by IRS computer or personnel.

The IRS depends on penalties for additional revenue and to discourage people from missing their tax settlements.

Some purposes for penalties:

• Failure to Pay Taxes
• Late Filing of Tax Return
• Fraud
• Accuracy
• Combined

An accuracy penalty of 20% is imposed if you understate your tax return's income tax liability. Fraud penalties are imposed if you fraudulently excluded or underreported your income on your return. This amount equals 75% of the amount understated.

Failure to pay taxes penalties are assessed at 0.25% to 1% monthly of the amount you failed to pay on time. It begins at 0.50%. It is reduced to 0.25% if you enter into an installment agreement. If you do not settle and are served with a Notice of Intent to Levy, the penalty can increase to 1% per monthon the balance due. This penalty begins on April 16 and 0.50% is compounded to your debt on the 16th day of each month.

Late filing of tax return penalties are compounded at five per cent each month on the amount due, up to twenty-five per cent of the sum.

A combination of penalties are combined penalties. They accrue quick when stacked on top of one another.

Wrong advice from an IRS official may lead to the penalties being cancelled, but you must show that you gave accurate tax information.

If you will prove reasonable cause why you failed to follow the tax law, you can get rid of or lessen penalties. This must be accomplished in writing.

Reasonable cause means you can prove a valid reason for acting or failing to act. Some common reasonable cause grounds include health issues, economic problems, personal problems, serious disruption of one�s life, and lost or unavailable records. An essential element of reasonable cause is to prove that you acted with "ordinary business care and prudence."

Please feel free to contact us at getirshelp.com or by all means call us tollfree at (888) GETMISH 438-6474 We're here to help with all of your problems with the IRS! It's not your fault so call us now!

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