If you’ve been served a Notice of Incompliance by the IRS, you may be nervous. The consequences of failing to pay your taxes can be serious – increased fines, a CNC status, and even tax evasion charges. Thankfully, you have several options. Hire a Tax Attorney to help you get your taxes back in order. The IRS has a long list of reasons why you might have fallen behind on your taxes.
While you may want to try an Offer in Compromise deal, you’ll want to remember that it’s not for everyone. Although you can get some of your tax debt back by agreeing to a lower payment amount, the IRS will not accept your Offer in Compromise if you cannot show that you’re suffering from financial hardship. If you’re not able to do that, you might not qualify for the offer in compromise deal and be subject to additional penalties and interest.
Hiring a tax lawyer in Mammoth Cave, KY is a smart move. Tax matters with the IRS are extremely sensitive and critical. Choosing the wrong tax attorney can cost you a lot of money, cause you to be frustrated, and even get you jail time. While tax laws may seem simple enough, the language can be confusing. Hiring a tax attorney will make the process much easier for you. If you’re having trouble with the IRS, you need a tax attorney in Kentucky who can help you navigate the jargon and avoid the traps.
The Indiana legislature recently voted to suspend most of the bill collections. This means that most of the new warrants and liens will not be issued. However, prior audits and legal bills will continue to be issued. You should respond to outstanding requests for information in a timely manner. During this time, you have sixty days to file an administrative protest. If your case is impacted by this new law, you’ll have the right to ask for an extension.
If you are not careful, the IRS will charge you a penalty for failure to file your tax returns on time. Typically, this is twenty percent of the balance you owe. The fee will be assessed on that balance plus interest. Even if you have no outstanding balance, the IRS can visit you and assess lesser penalties. Abatement, or reduction of fines, is possible if you know the reasons why the fines were assessed. The process of abatement is one of the most common ways for individuals to get their tax penalties reduced. The IRS can be persuaded to reduce the fines by eliminating them. One third of all tax penalties are abated!