Why Pick a Professional Houston Tax Services?
We are a Houston tax services who are open 365 days a week, and ready to help you with income tax returns and IRS audit help.
For example, not all taxpayers can pay their taxes on time. In these cases, some people avoid paying taxes at all. So, sometimes people forget paying the taxes due to a lack of knowledge. In such instances, the IRS introduced the Penalty abatement. This adds to taxpayer’s comfort not to pay any more taxes. Because paying penalties and extra money to the IRS is hard as is, so they understand. To clarify, such penalties cause people financial difficulties mostly. But don’t worry; at Green Tree Tax we have Enrolled Agent that provides the best tax services in Houston, TX.
What Are The Three Major IRS Penalties?
The IRS has over 150 different penalties in the tax code. These penalties are for taxpayers and companies depending on the penalty. However, 74% of penalties come from only 3 categories.
most common penalties are:
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- Failure-to-pay taxes
This involves 56% of all the abatement penalties under the IRS. This penalty is imposed when a taxpayer doesn’t pay his or her tax bill on the due date.
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- Failure-to-file taxes on time
This penalty comprises a total number of 14% of all penalties presented to the taxpayers. Therefore, this is a type of tax imposed when a taxpayer does not file an income tax return on time.
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- Failure-to-pay employment taxes
This amounts to 4% of all the penalties under the Internal Revenue Code if a business doesn’t pay employment. Likewise, if they don’t pay the taxes on time. Then the IRS can impose this penalty.
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What does IRS consider before removing a penalty?
- This only applies to one tax year or period. Also, you request for penalty abatement for past two or more years. Penalty relief will only apply to the earliest tax year or period. This applies if the taxpayer meets the criteria set by the IRS. The penalty relief for all the following tax years/periods is being based on relief provisions such as the reasonable cause criteria.
- If the IRS does not send a penalty letter, a client who is filing a return late, or have not filed at all must file the form along with the tax return. The taxpayer can also attach a penalty non-assertion request to the form 1040 if they qualify.
- Hence, this will apply if the client has paid the penalty in advance. He or she might file a Form 843 which is Claim for Refund and Request for Abatement. In this process, the request for a refund can get approve by the IRS.
- In addition, if the IRS doesn’t grant the penalty removal, then you can take it to the appeals. The appeals process can be different and you will need an Enrolled Agent to help you with that. This is more like a court process.
- If the taxpayers advocate asks for penalty removal from the IRS, then it could be possible to receive them. Always ask.
Why Green Tree Tax is the best Houston tax services?
Hence, the penalties mostly happen when you miss a deadline or fail to pay your taxes, it never happens to everyone. If you run into a problem with the IRS and penalties you can trust Green Tree Tax. We have our tax office in Houston for more than 5 years as well as represented taxpayers before the IRS auditors.