Offer In Compromise
Protect yourself from
IRS intimidation, errors,
and any tax penalties.

Offer in Compromise
Specific OIC Topics

About Offers In Compromise

Trust Fund Penalties

Related Tax Topics
For Taxpayers and
Tax Consultants

Appeals of IRS Collection and Examination Actions

Employee-Independent Contractor Issues

Employee-Misconduct Issues

Federal Courts

Freedom of Information Act

Innocent Spouse Relief

IRS Collection

IRS Installment Agreements

IRS Interest Abatement

IRS Seizure & Enforcement

IRS Statute of Limitations

IRS Tax Audits

IRS Tax Code Information

IRS Tax Fraud

IRS Tax Levies

IRS Tax Liens

IRS Tax Penalties

Tax Court

Tax Legislation

Tax Liens - Suing the IRS

Taxpayer Advocate and Problem Resolution

Taxpayer Privacy

Taxpayer Refunds

Taxpayer Rights

Why Protesters Lose

Write Your Congressman

IRS Tax Penalty and Interest Abatement

There are three reasons to discuss penalties and interest. First, penalties and interest are commonplace and hugely expensive for the taxpayer. Second, most representatives do not contest penalties. Third, a qualified tax attorney is frequently able to get tax penalties and interest abated, reduced or eliminated using research, analytical and interpretative skills. The law on the penalty provisions for substantial understatement of income tax is reduced to the extent that there is substantial authority or adequate disclosure and a reasonable basis for the understatement. Whether there is or is not substantial authority for the tax treatment of an item depends on the facts and circumstances. The accuracy penalty (20% of the underpayment) is reduced if there is substantial authority or adequate disclosure and a reasonable basis for the understatement, or the underpayment was not due to either negligence or disregard of rules or regulations. The 25% penalty for failure to file a tax return or to pay tax will be abated if failure is due to a reasonable cause and not due to willful neglect. Criminal prosecution and conviction may occur for tax evasion, willful failure to file a return, supply information or pay the tax due, fraud and false statements, or preparing and filing a fraudulent return. The 75% criminal penalty will be abated where taxpayer establishes there was no tax evasion, no willful failure to file a return, supply information, or pay any tax due; no fraud or false statement; and no preparation and filing of a fraudulent return. In case of underpayment, fraud penalties will be abated if it's established by a preponderance of the evidence that the underpayment is not attributable to fraud. The IRS must prove fraud by clear and convincing evidence. Because there are so many "terms of art" in the penalty provisions, as indicated by the italics, an expert tax attorney is mandatory to research the substantial case law and precedents. For example, there are regulations and a large body of case law that interpret words such as reasonable cause and willful neglect. The economic cost to the taxpayer to too large to leave the practice of tax law by anyone other than a tax attorney who is trained to research these and other tax law issues.

For Immediate IRS Tax Help
Offer in Compromise Associates
Free Conference Call
888.712.7690

Email: info@irstaxattorney.com

Special Tax Topics
|| Home || IRS Leverage || Overpaying || Consulting ||
|| Services Offered || Representation || Legal Issues ||
|| Factual Issues || Penalties and Interest || Lobbying ||

Brought to you by Alvin S. Brown, Esq., attorney at law, former Supervisory Manager and Tax Attorney-Advisor, Internal Revenue Service, Office of Chief Counsel, Internal Revenue Service.

Site Enhancements by Be. Site Designs and Top Gun