Besides the risk of having the IRS seize your property, one of the scariest and most stressful parts of having a back tax burden with the agency is the penalties and fees they impose. While the agency states that all they want is the money you owe, the sheer amount of additional fees and interest they apply can quickly make it difficult, at best, to actually pay them.
The good news is that you do have options.
With help from Instant Tax Solutions, you may be able to remove some or all of those extra charges and get back on the road to financial freedom. In fact, we may even be able to help you find other forms of tax relief, whether it’s getting the IRS to settle for a lower amount, helping you work out a payment plan, or even filing an amended return to reduce or eliminate what you owe.
In the end, though, dealing with the IRS can be complex and stressful. Doing it successfully requires a deep understanding and knowledge of how the agency works, the strategies needed to make a case, and the tools to gather the necessary evidence to back up a claim.
For years, Instant Tax Solutions has helped people just like you. Let us offer a free, confidential, no-obligation review of your finances and a consultation to build a plan that will get you back on your feet. Just call (888) 363-8958 or contact us online today to schedule your appointment.
An Overview of Portland IRS Interest Charges Removal
The first step in getting interest charges removed from your IRS back taxes is to get the penalties and fees abated. The IRS has many different types of penalties and fees. Just a few of these include:
- Past due information return
- Failure to pay
- Failure to file
- Erroneous claims
- Failure to deposit
- Bounced checks
- Failure to report foreign-sourced financial activity
- Tax preparer penalties
When the IRS imposes a penalty, it also charges interest. The idea is to use the threat of fees, penalties, and interest as a deterrent so that people do not file late, fail to file, or otherwise not meet their legally mandated tax-related obligations, otherwise, there’d be no difference to them to file as late as they wanted — or never at all.
When penalties happen as the result of a simple mistake, however, it can be scary and stressful. Instant Tax Solutions is here to help you overcome those mistakes, get rid of penalties and interest, and help you to get right with the IRS once more.
What Are the Portland IRS Interest Rates?
When you are subject to fees from the IRS, they also charge interest, which compounds every three months. As of June 2023, the interest rate in the short term is 4.43%, and the total IRS penalty interest rate is 7.43%.
In addition, the failure to pay penalty rate is one-half percent per month, to a maximum of 25% of the original balance owed total. The failure to file a penalty is five percent per month, up to a maximum of 25% of the total original past-due balance.
You also may be subject to a penalty for late filing if your tax return is more than 60 days past due. This penalty is equal to 100% of the tax owed or $450, whichever is less.
Note that these penalties change periodically, so it is a good idea to speak to a tax professional about any fees or penalties that you have been assessed.
How Does a Portland IRS Penalty Waiver Work?
The IRS offers means by which you can remove, reduce, and dispute penalties to lower or eliminate the impact they have on your finances. Removing or reducing penalties requires that you show reasonable cause regarding your failure to meet your obligations.
Several different types of penalty abatement exist, each with its own requirements. These include the following.
Penalty Removal for an Amended Return or Adjustment
If you file an amended return that reduces your total amount of taxes owed, you may be able to eliminate or reduce penalties based on the revised amount. You have up to three years to file such an amended tax return.
In addition, if you can prove that the IRS assessed you for the wrong amount of taxes, you also may be eligible to remove or reduce taxes owed, fees, and penalties. Finally, if you can prove that you acted in good faith and did not believe you owed those taxes, you can sometimes have the penalty removed.
Administrative Waiver Removal
An administrative waiver is among the most common forms of penalty abatement and most often comes in the form of a first-time abatement, which is available when you have not had a penalty for failure to file, pay, or deposit over the past three years.
Other forms of administrative waiver exist, as well, including those granted on a case-by-case basis at the agency’s discretion. You can also appeal a denied waiver, but doing so can be complicated, meaning you would benefit from expert help from a tax relief company like Instant Tax Solutions.
If you can prove that your fees or penalties are in violation of specific laws or statutes, the IRS is required to remove those penalties. Such exceptions include if you were given improper advice by the IRS or when you were given a failure to file a penalty, but you did, in fact, mail your return on time.
Statutory exceptions also cover you if you are living in a Federal disaster area or if you are an active duty military member in a combat zone. You will need to clearly document the statutory exceptions that apply in these cases.
Am I Eligible for a Portland IRS Penalty Waiver?
Determining whether you are eligible for a Portland IRS penalty waiver can be tricky, and that’s where Instant Tax Solutions comes into the picture. We can review your finances in detail, go over the IRS notices and letters you have received, and explore options to alleviate fines and fees or reduce your overall tax burden.
We can even represent you to the IRS and negotiate on your behalf. It is important, however, to act quickly. The moment you get a past-due notice from the agency, reach out to us for a free, confidential review.
The faster you act, the better off you are. It is, however, never too late; we are always ready and committed to helping you get your finances back on track.
Is it Possible to Seek Only IRS Interest Charges Removal?
It is, unfortunately, not possible to get the IRS to simply remove the interest on your fees and penalties in nearly all cases unless the penalty is removed first. The law forbids them to do this.
If you want to remove interest, you must remove the core charges to which it is attached, and that means eliminating the penalties.
If you can remove fees and penalties, however, the interest charges attached to them will also automatically go away. This makes fee and penalty abatement one of the best ways to reduce your back tax burden on the IRS.
How Can ITS Help with IRS Penalty Relief?
Instant Tax Solutions has decades of experience dealing with the IRS on behalf of people who just want to get out from under an unfair tax burden. We know how the agency works and the types of information and proof they require to abate the penalties you face.
We can help you to seek not only IRS penalty relief but sometimes actually reduce the core amount of taxes you owe.
Our CPAs, tax lawyers, and other tax professionals can help you go through your records and determine if mistakes were made, where they lie, and how to correct them. We can stand up for your rights and be an important partner on your road to getting your tax burden under control.
What Other Forms of Tax Relief Are There?
Besides fee and penalty abatement, ITS can help you explore many other forms of tax relief. These include:
Currently Not Collectible
Currently, not collectible status is a unique form of relief. It does not actually remove any fees, penalties, or overdue taxes. It merely shows the IRS that, in your current circumstances, you have no way to pay what you owe.
If they agree, they will give you a stay during which they will stop most collection activities. This stay can give you the time you need to make a plan to get caught up.
It is worth noting, however, that currently not collectible status does not stop interest. Any fees and interest that compound will continue to do so.
That makes it important to act quickly, even after you gain this temporary relief.
Installment Payment Plans
The IRS is often willing to work with you to establish a payment plan so you can get caught up on your taxes. Many plan options are available, including both short-term plans that act as an extension or long-term plans with ongoing monthly installments.
ITS can help you negotiate such a plan and determine your ability to pay without hampering your other finances.
Offer in Compromise
An offer in compromise means that the IRS is willing to accept a lesser amount than you owe as payment in full. This is a common means of reducing your core tax liability, but the IRS must agree to your proposal.
ITS has a great deal of experience negotiating offers in compromise agreements.
IRS Lien and Levy Removal
If you can prove that an asset seizure or frozen accounts by the IRS actually interfere with your ability to pay your tax obligations, they may agree to open up those assets for you to use. We can help you to prove that you need such removal and work towards freeing up your accounts and property.
Contact Instant Tax Solutions Today
Instant Tax Solutions has many years of experience and expertise in helping businesses and individual folks find relief from their tax burdens.
To learn what kinds of relief you may be eligible to pursue, contact us at (888) 363-8958 or schedule a free appointment online today.