Tax Penalty Abatement Oakland, CA
Struggling with tax penalties and interest in the bay area? Our team of tax penalty abatement experts in Oakland, CA can help
IRS tax penalties are basically the "insult" to the "injury" of your IRS tax debt. Just like any other tax debt issue that California taxpayers in the bay-area face, to take a step in the right direction you must seek professional tax help ASAP. As time goes on, the tax penalties grow and become more and more detrimental to your personal and financial well-being. Luckily, IRS penalty abatement (tax penalty relief) is a phone call away, and only the IRS penalty abatement specialists at Bay Area Pure Tax can offer a local, and effective solution for California taxpayers struggling with tax penalties.
Our team of Oakland CA tax attorneys and tax resolution experts will contact the IRS immediately on your behalf to begin negotiating a tax penalty abatement plan that will reduce, or even eliminate your penalty/interest deliquency altogether.
Maddi Benedict - Tax Attorney
Understanding the Impact of IRS Penalties
Climbing out of your tax penalty hole can be difficult, which is why you’ll need an IRS penalty abatement expert on your side. The IRS penalty abatement specialists at Bay Area Pure Tax will listen, and offer a penalty abatement strategy that suits your needs.
Let's dive into the details and nature of the tax penalties imposed by the IRS:
Accuracy Penalties
Accuracy Penalties are broken down into 2 distinct penalties, "Substantial Understatement" penalty and the "Negligence or Disregard of the Rules or Regulations". Substantial Understatement simply applies to taxable income that is underreported. Negligence or Disregard of the Rules or Regulations applies to more complex criteria, but falls under carelessly, recklessly, or purposely engaging in faulty practices when preparing and filing tax returns.
Civil Fraud Penalties
Civil Fraud Penalties constitute any scenario where underpayment of tax was caused by purposeful fraud. In cases of a joint return, the spouse will not be penalized unless fraud involvement can be proven. In addition to tax penalties, civil sanctions and criminal prosecution can be imposed as well.
Estimated Tax-Related Penalties
These penalties typically apply to self-employed workers or contractors, or any form of income that isn't filed as W2 by an employer. These taxpayers instead are required to file estimated tax payments on a quarterly basis, and if they are not paid, underpaid, or paid late, there will be a penalty imposed.
Frivolous Tax Return Penalty
If the IRS identifies information on your tax return as "frivolous", or lacking enough detailed information showing your tax return is correct, you, and your spouse (if filing jointly) will be subject to a penalty as high as $5,000 EACH.
Bounced Check Penalty
Pretty self-explanatory, but if a check you write to the IRS bounces, the penalty is either 2 percent of the check amount (for amounts more than $1,250) or, $25 if the check is less than $1,250, whichever is less.
PURSUE PROFESSIONAL TAX PENALTY ABATEMENT IN OAKLAND AND THE BAY AREA
We offer free consultations, superior customer service, and flat-rate fees for all of our tax resolution services in the bay area. Contact us today to speak with our President, Tim Halcomb for a FREE consultation.
