If you owe back taxes to the IRS, an Ohio tax attorney could help you take advantage of a little known IRS program known as penalty abatement. With more than 20 years of experience as Ohio tax lawyers, we’ve successfully helped all of our clients have some, and occasionally all, of the penalties and interest removed from what they owe. The IRS assesses Penalties and interest for several reasons. It could be that you didn’t file your taxes on time. Another common reason, as we mentioned in the title and in this paragraph is that you owe back taxes. Regardless of the reason, the amount owed can quickly exceed the original tax debt!

Penalty Abatement Requirements

It is important to always keep in mind that while the penalty abatement program exists, there are strict requirements that must be met. Even when those requirements are met, there is no guarantee that all of the penalties will be fully forgiven. To fully leverage the program, you should talk with an Ohio tax lawyer about the facts surrounding your specific situation.

First, let’s discuss the first time penalty abatement. There are three requirements to be considered eligible:

  1. You had no penalties for the last three tax years. The may exception to this rule is that the IRS only considers penalties greater than $100. If you owed less than $100, you may still qualify.
  2. You filed all required returns or extensions. If you haven’t properly filed your returns or extensions, you will not qualify.
  3. You made payment arrangements on what you owe. If you have a payment arrangement, you must be making payments on a regular basis.

Abatement and Older Tax Debt

If you are considering penalty abatement for a tax, you must have reasonable cause. Some of the most common reasonable causes granted abatement include:

  • Your records were destroyed by a flood, fire, or other natural disaster and there is no way to calculate the amount owed;
  • You were incarcerated or in rehab;
  • You experienced death of a close family member such as your spouse or child;
  • You were given bad information from a tax professional;
  • You have another reason that helps fulfill what is known as your “ordinary business care and prudence” to fulfill your tax obligation.

That isn’t a full list of reasons. To learn more about whether you may be eligible to have some or all of your penalties and interest forgiven, use our free cost estimator for our legal services or use our calendar form to schedule a time to speak with an experienced Ohio tax lawyer.

Don’t Face the IRS Alone

If you owe back taxes, don’t face the IRS alone. As experienced Ohio tax lawyers, J. M. Sells Law Ltd., can help you get the most equitable treatment possible. To learn more about penalty abatement, back taxes, or how to handle other tax issues, you’re invited to call us Call Usor use our instant price quote tool.