One of the most common types of contact from the IRS is a computer-generated notice in which the Service proposes to increase the tax liability for a return that has been filed. The IRS is authorized to make changes to your return in some cases without a formal audit. Sometimes these IRS notices are incorrect. …
Abatement of IRS Penalties
When the IRS sends a notice proposing additional taxes, it usually adds penalties and interest. Penalties are authorized for things like filing your return late, paying your taxes late, where you are found to owe additional taxes, or have failed to file all required forms. The IRS can impose an accuracy-related penalty equal to 20% …
Preparation of Delinquent Tax Returns
It is a crime to not file a tax return if taxes are owed. However, there is no criminal penalty if you file your return but can’t pay your taxes. It’s better to file delinquent tax returns before the IRS contacts you. Even if you are several years delinquent and don’t have the money to …