Penalty Abatement

A formal request for a Penalty Abatement is a written request to the government stating a case for reasonable cause and abatement of penalties. In order to obtain an Abatement of Penalties with the Internal Revenue Service it is necessary to establish what the IRS calls “reasonable cause.”

Top 5 Ways To Reduce An IRS Tax Liability

How to Reduce Your IRS Tax Liability | OIC | TaxFortress.com

So, something in life or business didn’t go according to plan, and now you’re faced with an IRS tax liability. While few people relish being a collection target of America’s most formidable creditor, there may be a silver lining. You may have options which could significantly reduce the amount that […]

How to Eliminate IRS Civil Penalties And State Withholding Tax Return Discrepancies

IRS Civil Penalty | Discrepancy Notice | TaxFortress

One of the most frustrating situations my clients confront is the IRS’s addition of large amounts of tax or Civil Penalties to tax periods that ended a long time ago. There can be several reasons for additions to tax or Civil Penalties, but the most common ones I encounter are […]

Exploring the Consequences of Paying S Corporation Shareholders Unreasonably Low Wages

S Corporation | Penalty Abatement | S Corp | TaxFortress

If you are a shareholder in an S Corporation and you also work for that S Corporation, it is critical that that you pay yourself a reasonable wage. Many S Corporation owners take little or no compensation in the form of wages and, instead, disproportionately pay themselves in the form […]

It’s Almost April 15th, and I Can’t Pay My 1040 Tax. What Do I Do?

1040 | Penalty Abatement | Failure to Pay Penalty | TaxFortress

April 15th is right around the corner, and if you expect to owe 1040 income tax, but don’t have the resources with which to pay it, you are in the same boat as many Americans.  First of all, don’t panic.  Federal officers are not going to show up at your […]

Tax Penalties: Is it Possible to Reduce or Eliminate My Penalties?

IRS Penalty Relief | Tax Penalty | Penalty Abatement

It is possible for some taxpayers to reduce or eliminate their tax penalties by obtaining an abatement of penalties.  This article will explore the fundamentals of IRS penalties as well as how to go about getting them removed.  Taxpayers with a state tax liability may also qualify for an abatement, […]

Can I Avoid Additional Tax Penalties by Designating Payments to My IRS Tax Liability?

Voluntary Payment | IRS Appeals | Installment Agreement

Answer: Depending upon the specifics of your situation, it may be possible to avoid hundreds, or even thousands, of dollars in penalties simply by “designating” voluntary payments applied toward your tax liability.  Keep in mind that payments made in accordance with a formalized installment agreement are not considered voluntary, so […]