Falling behind on filing your income tax returns because you know you owe money is a domino effect. The taxes originally due will now be compounded with penalties and interest. If you didn’t owe money failing to file a tax return can lead to a loss of refund. The IRS and State Tax Agencies are getting better all the time at catching people who haven’t filed tax returns and they never seem to warn you until you’ve fallen a couple of years behind. It doesn’t matter if your unfiled tax returns are personal or business. Jason Valiante is an experienced Enrolled Agent and Tax Preparer who will prepare you unfiled tax returns and face the IRS for you so you don’t have to!!

• Have you gone to the bank and shockingly found out a Tax Agency has levied money from your bank account?
• Is a levy causing financial strain for you to pay your bills?
• Is the IRS garnishing your wages?

• Tax has been assessed and taxpayer has been sent a bill;
• Taxpayer has neglected or refused to pay the bill;
• IRS sent the taxpayer a “Final Notice of Intent to Levy” and “Notice of your right to hearing” 30 days before the seizure.

• Do you owe the IRS a large sum of money?
• Have you been putting off facing this problem?
• Does it seem like you ‘ll never be able to pay off this tax bill?

Every Year the IRS charges penalties for failing to file a tax return, failing to pay on time, failing to deposit taxes as required, and other applicable penalties.

There are three types of penalty relief available to a taxpayer:

1. First time penalty abatement.
2. Reasonable Cause
3. Statutory exception.

First Time Abatement addresses the two most common penalties; failure to file and failure to pay. The key to qualifying for the first-time abatement is having a good track record over the past three tax years. During the three years prior to the tax year receiving the penalty you must have not been charged a penalty. You timely filed all returns or requested an extension in a timely manner. The payments of tax due were paid on time or there is an arrangement to pay in place.

Reasonable cause abatement will be reviewed based on facts and circumstances. You will need a solid sound reason to get the penalty abated. The IRS will consider and potentially accept the following as a solid reason:

• Fire, casualty, natural disaster, or other disturbances
• Inability to obtain records
• Death, serious illness, incapacitation or unavoidable absence of the taxpayer or member of the taxpayer’s immediate family
• Other reason which establishes that you used all ordinary business care and prudence to meet your Federal tax oblations but were unable to do so.

You will need documentation to prove reasonable cause solid documentation includes obtaining medical records from the hospital, court records, or a letter from a Dr. or physician establishing your illness, incapacitation, with specific beginning and end dates. If you incurred a natural disaster have documentation of the disaster or other events that prevented, you from being compliant.

To qualify for a statutory exception the taxpayer would have had to receive incorrect written advice from the IRS. This advice resulted in a penalty being assessed. This statutory exception is difficult to obtain relief from because you will need the following to show proof.

• The written request for advice.
• The erroneous written advice furnished to you by the IRS in which you relied
• The report, if any, of tax adjustments identifying the penalty or addition to tax, and the item(s) relating to the erroneous advice.

Innocent spouse relief and Injured spouse relief

Married Taxpayers are jointly and severally liable for the tax and any additions to tax, interest, or penalties that arise because of a jointly filed tax return. What happens if your spouse or ex-spouse failed to report income? reported income improperly? or claimed improper deductions or credits? Innocent spouse relief may relieve a Taxpayer from paying tax, interest, and penalties that arise from a jointly filed tax return. We can assess your specific situation and see if you are eligible to seek relief from the IRS collection actions.

Injured spouse relief is different from innocent spouse relief. A taxpayer would be eligible for innocent spouse relief when the liability belongs to the other spouse. A Taxpayer would be considered injured if they filed married filing joint and all or part of their refund was or will be applied against the separate past due Federal tax, State tax, Child Support, or Federal Non-tax Debt (such as a Student Loan).