An IRS penalty is a form of punishment when violating a tax law. It is penalized if one fails to comply with the tax. It is levied on the total income earned by the people in particular years.

Filing your tax return is a simple way to save a penalty. But, sometimes, it is a lot harder than it should be. When you feel it is harder to control the situation, speak to the IRS penalty attorney in Houston.

If you have never dealt with the IRS and are frightened of contacting the IRS, attorneys play a crucial role to remove your fear. Depending on your situation, they help you to negotiate the penalty with the IRS, remove penalties, set up payments, and protect your assets from collection actions.

There are different kinds of IRS penalties. The major one is the addition of tax. It is the situation when taxpayers fail to submit the tax return or estimated payment on time. The other IRS penalties include:

• Accuracy-related penalties.
• Fraud Penalties
• Tax return preparer penalties
• Certain information returns payee statement penalties
• Compensation statement, pension plan, exempt organization, and other reporting penalties.
• Accuracy-related penalties.

Accuracy-related penalty
· It is a charge of 20 % of taxpayers' underpayment of federal taxes due to negligence and other errors found on their tax return. The underpayment must be related to negligence or disregard of rules and regulations or any substantial estate or gift tax valuation understatement.
Fraud penalties
· Cheating in taxes entails tax fraud. People do it because they don’t want to pay taxes. The IRS conducts a criminal investigation and adheres to the bank secrecy act and various money laundering statutes. It is an attempt to avoid paying the entire tax obligation.
Tax return preparer penalties
· The IRS can impose tax return preparer penalties for incomplete tax return preparation. It is prepared on the date of signing the return. The return is only prepared when the tax return is filed.

If you are on top of your tax filing responsibilities but just missed the deadline, the IRS favors you if you have paid your outstanding balance or set up an instalment agreement with the IRS and have had no prior penalties in the last three years. The IRS tax penalty can range from less than 1% to 100% of the underlying IRS tax liability.

Schedule an appointment now with the attorneys of Mitchell Tax Law and abate tax penalties. We are handling all kinds of tax issues for a decade and adhere to tax law so that you bear minimum financial loss! Call today!


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