Press Release Summary: This is an example of how one could get into problems with the IRS. Filing returns are extremely important, and heres why.
Press Release Body: Tim is a painter. When he started his company, he didn't have enough money to pay his taxes, so he didn't file.
Tim's situation is not unique. Many people don't file because they don't have the money to pay their taxes, and they think filing will cause problems. The opposite is true! Filing, even though you don't have the money, will free you from additional penalties, immediately saving you 25% on top of whatever you owe.
Tim, starting his new company, didn't understand his new tax responsibilities. Tim failed to file two payroll returns. The IRS assessed penalties of $4000. Like many other clients of Tax Matters Solutions, he wanted a penalty abatement.
In order to receive a penalty abatement, the IRS requires you to fulfill the following:
1. Pay the base tax. If you haven't paid the base tax, the IRS won't even listen to you. 2. File a penalty abatement request. 3. Give a reasonable explanation of why you didn't file your return. The reviewer needs to be able to justify giving you a penalty abatement. "I was in drug counseling," "I was depressed," or "My husband beat me up" are reasonable stories. Even the explanation, "I didn't have the money to pay, so I didn't know I could file," will suffice. 4. Have a reasonably decent filing history. If this is a one-time event for you, you have a good chance of receiving a penalty abatement.
Interest won't be forgiven. Statutorily the IRS cannot forgive interest, except in extreme situations, such as being a battered spouse. But you would need restraining orders and medical reports to back your story. Penalties, on the other hand, can often be removed.
Tax Matters Solutions helped Tim file his taxes and set up a payment plan. Tim fulfilled the terms and conditions of the payment plan. Tax Matters Solutions then wrote penalty abatement requests and shortly after received notice from the IRS of $2900 in penalty abatement! Tim was relieved and elated.
"Most people who don't file and pay on time don't think of the impact of penalties," says Marc Jernigan, senior associate of Tax Matters Solutions. "Always file a return, even if you don't have the money, because that saves you 25% in penalties right off the top."
Web Site: http://www.taxmatterssolutions.com
Contact Details: 10347 Dawson\'s Creek Blvd. Building 5, Ste. 5 Fort Wayne, IN 46825 (p)260.489.0818 (f)260.490.2299 info@taxmatterssolutions.com
2022
