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IRS Penalties & Interest

Removal of Penalty and Interest
Reasonable Cause

IRS charges interest and penalties for any outstanding taxes as wells as for late filing, valuation overstatements or understatements and substantial understatement of the tax due. The combined charges for interest and penalties often may be much greater than the original tax debt.

However, the law allows us to remove or reduce a penalty based on "reasonable cause." To request a penalty reduction, we prepare a detailed report of circumstances, facts and other supporting evidence to convince the IRS that the charges for penalties should be abated. The requests for abatement must be made under a penalty of perjury.

Circumstances where IRS will remove the penalty charges may include:

You relied on IRS' written advice concerning your tax situation which resulted in the penalty.

Death or serious health condition suffered by a family member
Mental or Physical illness
Drug or related dependency problems
Reliance on a bad accountant or a tax advisor
Extended military service

There are numerous other circumstances which may result in removal of the penalty and the outcome of each case can vary depending upon how your case is argued. Keep in mind that proper documentation and detailed description of the basis to prove "reasonable cause" is the key to having the penalties removed.

In addition, IRS may also remove or reduce interest charges due to errors by the IRS' ministerial act, based on the facts and circumstances of each case.

Los Angeles California Tax Attorney Blog - TAX & PENALTIES
Client Reviews
Victor is an excellent tax attorney for individuals and business in need of tax relief. Feel assured that Victor can get the job done. I know I am comfortable recommending Victor for any tax problem. John K.
We had a irs problem and came to Victor. He is very knowledgeable and gave us great advice. I would recommend him to anyone with tax problems. He also does franchise tax board cases but we didn't need him for that. I have referred fiends to him and they were happy with him too. Pam
My elderly mother had a very complicated tax problem from when she lived in CA years ago. Even though we now live in Oregon, Mr. Yoo not only helped her remotely but delivered better and expected results. We couldn't have asked for better service. Lisa
Victor got us out of a jam with the IRS. We were the first to be offered a new amnesty program and it saved us quite a bit in taxes, but more importantly gave us peace of mind. John
Our personal taxes got complicated because of an erroneous 1099 we received. As a result our tax liability increased. Victor was able to iron things out with the IRS and Franchise Tax Board. Ed