Failing to follow U.S. tax laws, making a mistake on a return, or not making payments on time can subject a taxpayer to tax penalties. Civil tax penalties can result in continuing interest, penalty assessments, and may result in the government levying accounts or issuing a tax lien. Criminal tax penalties can even carry the possibility of jail time.
When facing a tax penalty in Maryland, taxpayers can turn to an experienced tax lawyer to negotiate a settlement offer, seek an abatement or other relief, or challenge the IRS claim of a tax violation.
IRS Tax Penalties
The majority of tax violations involve failure to pay, failure to file, underpayment, or inaccurate filings. These tax issues could involve clerical or math errors, intentionally failing to file a return, or simply being unaware of tax filing requirements. Tax penalties that are authorized by the tax code can include the following.
A notice from the IRS may indicate the tax issue and seek compliance from the taxpayer. If you receive a notice from the IRS regarding a tax violation, penalty assessment, or clarification, contact a tax lawyer to understand your options. There may be options to reduce or eliminate the tax penalties in your tax case.
IRS Criminal Tax Penalties
Most tax penalties involve civil assessment. However, the Internal Revenue Code (IRC), criminal tax law provisions for criminal tax penalties, including:
- Tax evasion
- Willful failure to collect or pay tax
- Willful failure to file a return
- Fraud and false statements
- Failure to obey summons
- Unauthorized disclosure of information
Criminal tax penalties can include fines and possible jail time. For example, a criminal conviction for tax evasion by an individual can result in a fine of up to $100,000 and imprisonment for up to five years. In addition, the taxpayer may be required to pay court costs.
Tax Penalty Abatement
Some taxpayers may be eligible for tax relief from penalties. Penalties eligible for relief may include issues like failing to file a return, failure to pay on time, and failure to deposit certain taxes. One type of penalty relief includes an Administrative Waiver and First Time Penalty Abatement. Penalty abatement may be available if you:
- Did not previously have any penalties for the three years prior to the penalty filing;
- Filed all currently required returns or file an extension; and
- Paid or arranged to pay any due tax.
Interest may continue to be charged along with failure to pay penalties accrual until the tax is paid in full. Talk to an experienced tax lawyer about options for penalty and interest relief for tax penalties.
Why Gabaie & Associates, LLC When Facing Tax Penalties in Maryland?
When facing tax penalties, some taxpayers turn to debt relief companies who make big promises. However, the Federal Trade Commission (FTC) has issued a Fraud Alert regarding tax relief companies who offer to settle IRS tax debt. Consumers have reported that, even after they paid significant up-front fees, some of these companies made unauthorized charges to their credit cards or withdraw money from their bank accounts.
The benefits of hiring a reliable tax attorney are that you have a professional who can provide you with expert guidance on your individual tax issues. Tax attorneys are bound by professional ethics to act in your best interests. If you have a tax debt, contact a reliable tax lawyer who can negotiate with the IRS while protecting your interests.
IRS tax attorney Juda Gabaie has experience successfully helping clients obtain an agreeable solution to their unique tax issues. If you have unpaid taxes with the IRS, contact us today for a free consultation online or at (443) 345-8291.
