The Internal Revenue Service will add penalties against taxpayers that have unresolved tax debt. There are hundreds of penalties from which to choose, and the Internal Revenue Service will find one (or more) that apply to your specific tax debt. They are serious about assessing penalties against delinquent taxpayers. As a taxpayer you need to understand why a particular penalty was assessed in order to create a plan that will stop the penalty or have it removed. You must also be able to question the correctness of the penalty.
However, before you question the penalty assessed, you must be knowledgeable about the IRS communication system of taxpayer notices. For example, an IRS notice is used to inform you there is problem with your taxes. Often, the notices involve tax returns you filed from previous years. This means the amount of money owed to them has been increasing regularly due to penalties and compounding interest.
There are thousands of penalty notices being sent by the Internal Revenue Service every year which can be reduced if the taxpayer is alert. You must keep in mind that not all notices are right. Even the Internal Revenue Service admits that not all of their notices are correct. Unfortunately, if you do not understand these notices, you can end up paying too much money or paying money that is not owed. The Internal Revenue Service must assess these penalties based upon the limited information they have. The error will not be known to them unless you, the taxpayer, informs them. The burden of proof rests on the taxpayer, and if the Internal Revenue Service is not challenged, they will continue collecting the amount of money they state is due.
The Internal Revenue Service often makes mistakes that are not rectified. These mistakes can be questioned by a good tax expert and often resolved in the taxpayer’s favor. Even though you believe there are errors in the IRS notice as well as the amount of penalties added, you must remember that you must respond every notice from the Internal Revenue Service. You can question it together with your tax expert, but ignoring it only escalates the problem. It will not just drop off the books.
With all the mistakes made by the Internal Revenue Service, it is possible that you could be the one to receive a notice. You can do something about it! Visit https://instanttaxsolutions.com/tax-problems/irs-penalties/ for more about IRS Penalties.
