PENALTY ABATEMENT

TAX CASE EVALUATION

Penalty Abatement: expert san diego tax attorneys can help you get relief

Tax penalties are what deter many taxpayers from taking aggressive positions on their tax returns. It is often the case that the tax penalties that the IRS assesses against the taxpayer exceeds the amount of tax owed. If you fail to timely file your tax return, if your tax return is inaccurate, if you have made a valuation error on your tax return, or if you are considered a responsible person for payroll taxes, the IRS may, and will, assess disastrous penalties against you.

Contrary to popular belief, that is not the end of the story. While the IRS has significant power to assess penalties against the taxpayer, the Internal Revenue Code provides for certain exceptions to most penalties. Dallo Law Group has conducted extensive research in the area of penalty abatement and knows how to apply the facts of your penalty tax case to the law. For many first time offenders, you might qualify for a first-time abatement. There is also a reasonable cause exception to getting the penalties abated. 

What qualifies as a first-time abatement in California? You have been compliant with all tax return filing requirements. You had not previously been granted a one-time abatement. You have paid in full all outstanding liabilities. 

If you do not qualify under first-time abatement, you might still qualify under reasonable cause exception. 

So which option should you go with? That is a question the experienced attorneys at Dallo Law Group can help answer for you. 

Why Hire Dallo Law Group?

While many tax professionals have read the Internal Revenue Code provisions regarding penalties, Dallo Law Group is unique in that we are trained and educated in understanding how these provisions work and we have the legal skills necessary to write an argumentative legal brief on the issue and are experienced in tax negotiation with the IRS and the Department of Justice. Both skills are necessary to get the best possible results for you!

Not only is Dallo Law Group equipped with the necessary skills, but also we have experience in handling these complex cases. Dallo Law Group  has conducted extensive research in the area of penalty abatement and knows how to apply the facts of your penalty tax case to the law.In addition, Dallo Law Group prides itself on staying up to date with all the abatement penalty laws and news. Because penalty abatement is very fact specific and intensive, it is crucial that a proper analysis is done and presented to the IRS.

Our Approach to the Penalty Abatement Process

At Dallo Law Group, we tailor a game plan to fit your facts and circumstances. We start by breaking down step by step the penalty abatement process. This allows you to feel more at ease with us by your side and for you to understand what will potentially happen. After you share your documents and story with us, we will begin conducting research into relevant statutes and case law to help your side. From the research and story, we will finalize the best plan of attack for you to win your case. In addition, we will request documentation from the Franchise Tax Board on your behalf. 

Furthermore, we will keep you up to speed with your case. We will inform you of sudden developments or news. Hopefully, all good news for you. Then by retaining us, we will negotiate with the Franchise Tax Board on your behalf, so you do not have to stress about talking to them and getting confused by all the legal jargon. Lastly, we will submit your penalty abatement requests form and follow up with the Franchise Tax Board on their progress.

Types of Tax Penalties

There are many reasons that one can get a tax penalty. It is fairly common. If you have been filing correctly and on time for the past couple of years, you may qualify for a penalty abatement. Some tax penalties that may qualify for penalty abatement are:

  • Late filing: Occurs when you fail to submit your tax return by the deadline specified by the IRS.
  • Late payment: Results from not paying your taxes on time after filing your return.
  • Failure to deposit: Typically applies to employers who do not correctly deposit employment taxes withheld from their employees’ wages.
  • Dishonored check: Arises when a check used to pay taxes bounces or is dishonored by the bank.
  • Underpayment of estimated tax by corporation or individuals: Occurs when individuals or businesses underestimate and underpay their taxes throughout the year.
  • Accuracy-related: Involves penalties imposed for inaccuracies, errors, or omissions in your tax return, such as underreporting income or overvaluing deductions.

Benefits of Penalty Abatement

If you are on the fence about requesting a penalty abatement, you should think about some of the benefits:

Reduction or elimination of penalties: Penalty abatement can significantly reduce or, in some cases, completely eliminate the financial burden of tax penalties imposed by the IRS. This means you may not have to pay the full penalty amount, providing substantial relief.

Reduction or elimination of interests: In addition to penalties, tax interest can accumulate over time, increasing the total amount you owe. Penalty abatement can help reduce or eliminate these interest charges, leading to additional cost savings.

Potential for lowered overall tax debt: By successfully abating penalties and associated interest, your overall tax debt can be substantially reduced. This can make it more manageable to resolve your tax issues and regain your financial footing.

Improved financial stability and peace of mind: Penalty abatement not only relieves the financial burden but also brings peace of mind. It can help you regain control of your financial situation and reduce the stress and anxiety associated with tax problems.

Types of Tax Penalties

  • Late filing: Penalties are imposed if you fail to file your tax return by the due date, which can result in significant financial consequences.
  • Late payment: Failure to pay your taxes by the deadline can lead to late payment penalties, which can quickly add up.
  • Failure to deposit: This penalty typically applies to employers who fail to deposit employment taxes properly.
  • Dishonored check: If your payment to the IRS bounces, you may incur a dishonored check penalty.
  • Underpayment of estimated tax by corporation or individuals: Individuals and corporations are required to make estimated tax payments. Underpayment of these amounts can lead to penalties.
  • Accuracy-related: Penalties may be imposed if there are inaccuracies or errors in your tax return, such as underreporting income or overvaluing deductions.

Our Approach to the Penalty Abatement Process

We provide a transparent, step-by-step approach to the penalty abatement process, ensuring all of our clients understand every phase of the journey to tax relief. Our team conducts thorough research into your specific case, gathering all relevant information to build a compelling argument for penalty abatement.

We also understand that every case is unique. We tailor a customized strategy to address the specific circumstances of your tax issue, maximizing your chances of success. Our tax attorneys assist you in collecting all required documentation to support your penalty abatement request, negotiate with tax authorities on your behalf, and handle all of the paperwork and formal requests for penalty abatement.

We pride ourselves on maintaining open communication throughout the entire process, and continue to monitor your case after the submission of the penalty abatement request, following up with tax authorities and making any necessary appeals or adjustments to maximize the chances of a successful outcome.

There are many ways to qualify for a penalty abatement! Contact Dallo Law Group for a  consultation to learn how we can help you eliminate these penalties from your tax account!