We often get clients who come to us after attempting to deal with the IRS on their own, and things don’t turn out how they had imagined it being without having the help of a tax attorney.
Case #1: In our first case, our client had gained filing compliance and fully paid off her taxes owed prior to retaining our firm for assistance. Despite having paid the balance in full, she still owed over $12,000 due to penalties and interested that accrued on her IRS account during the periods she owed. The client came to us for help because she wanted to find out the best way to get the penalties and interest reduced, or even removed. After analyzing her IRS account, we moved forward with filing a First-Time Penalty Abatement as well as a Reasonable Cause Penalty Abatement on her behalf. While there is no guarantee the IRS will grant you a penalty abatement it is in your best interest to try. It’s like the saying, “If you don’t ask, the answer is always no”. Having a tax professional to negotiate abatements on your behalf is the best way to increase your chances of getting an abatement. Many different things can cause you to accumulate penalties and interest on your account including failing to file your tax return on time, not making a payment on time, or even tax filing errors. The goal in mind with a Penalty Abatement is to save you as much money as possible, and possibly even all penalties and interest on your account waived. Our office was able to secure a First Time Penalty Abatement for the client that saved her over $11,000! Our team also submitted a Reasonable Cause Penalty Abatement to attempt to get her a refund of the penalties she already paid.
Case #2: Our next client owed years of back taxes to the IRS due to improper income tax withholding amounts. The balances arose from a period of time that the client went tax exempt (was not having any taxes withheld from their paychecks) and used the money to do some remodeling on their house. Thereafter, they changed their W-4 to have the proper amount of taxes withheld from their pay. Later on, they found out that their employer had adjusted their state withholdings, but not their federal withholdings. This caused them to incur an additional tax liability along with additional penalties and interest. It also led to the IRS issuing a mandatory withholding order to their employer, forcing them to have the maximum amount of withholdings deducted from each paycheck. After retaining with our office, we got the IRS withholdings order released and also negotiated a Partial Pay Installment Agreement for $25 per month. In the end, this saved our client almost $25,000!
If you need help settling your tax liability with the IRS or State, call Polston Tax Today! Our team of Tax Attorneys, CPAs, Case Managers, and Tax Accountants will help you get the best resolution possible and solve your tax problems once and for all!