Are IRS Penalties a Fact of Life?

Are IRS Penalties a Fact of Life ? :

Penalty abatement is a technique that tax practitioners can utilize to help their clients reduce their tax debt or even entirely cancel penalties and interests they owe to the IRS. The trick is to convince the IRS that your client was unable to pay the taxes due to what the IRS tags a “reasonable cause.”

IRS penalties and interests increase the bill every day if your taxes are outstanding after the filing deadline. Taxpayers are liable for the additional penalties and interests on the entire outstanding amount even if they have qualified for a tax debt payment plan and have started to make payments. These penalties can add as much as an additional 25% to a taxpayer’s IRS bill. Also, the federal agency charges an additional penalty of 5 per cent on taxes that have not been filed.

If a practitioner or taxpayer can justify that reasonable cause led to delay in tax payment, there are good chances that the IRS may forgive a portion or the entire penalty charged on your tax debt. Remember that IRS is softer on failure to pay penalties than failure to file penalties. The purpose of penalties and interests are to encourage and motivate taxpayers to pay their taxes on time.

Key Learning Outcomes:

• Effective methods to reduce or eliminate IRS interest charges
• Preventing understatement of tax penalties through proper documentation
• Step-by-step procedures for submitting relief requests
• Current regulations governing penalty and interest waivers
• Required documentation for successful applications
• Procedures for obtaining refunds on paid penalties

Learning Objectives:

• Understand and navigate the elements that the IRS must establish to impose various penalties
• Assist your clients in avoiding IRS penalties
• Assist your clients in effectively and efficiently challenging unwarranted IRS penalties
• Learn and apply new and significant judicial precedent regarding penalties and the IRS’s ability to assess them
• Understand what managerial approval the IRS needs to assert penalties and learn strategies to successfully verify that such approval was secured

Areas Covered:

• The vast array of penalties in the IRS’s arsenal
• What the IRS must establish to assert these penalties
• What’s the difference between an assessable penalty and a non-assessable penalty and why id that important?
• The IRS must show managerial approval of a penalty to enforce the penalty
• Practical insights and procedure in challenging penalties

Who Should Attend:

• Certified Public Accountants
• Enrolled Agents
• Tax Professionals
• Tax Attorneys

• Accountants
• Tax Compliance Managers
• Finance Professionals
• Registered Agents

Credits & Information:-

      - CPE Credits: 2.0 (Field of Study: Taxes)

      - Prerequisites: None

      - Level: Basic

      - Delivery Method: Group Internet Based

      - IRS CE Provider: #PUPOT

      - IRS Course ID: PUPOT-T-00003-25-O