Even the folks in Congress who write the tax code have trouble following it sometimes. The IRS and courts recognize the law’s complexity and therefore provide for various penalty abatement procedures.
The Foreign Bank Account Trap
FBAR penalties: In order to be assessed FBAR penalties, the IRS must prove a particular state of mind. A state of mind can only be established through indirect and circumstantial evidence. As attorneys, we excel at formulating persuasive arguments by accentuating helpful facts and minimizing unhelpful concerns. So if an FBAR penalty was assessed unfairly, you may be able to reduce it.
Why didn’t you pay your personal or payroll taxes?
Most companies won’t bother to ask you why. But the answer can make a huge difference in reducing penalties and interest, which can add up to 75% of the amount owed to the IRS. Sometimes, there’s a very good reason you didn’t pay – from an unforeseen medical emergency, to a less-than-honest bookkeeper. In these kinds of cases, we’ll present a more persuasive argument for reducing penalties and interest, which improves your chances for success. Whatever the reason, don’t worry. We have other methods to resolve your tax problems. Contact us and we’ll talk about your choices.