So, the other day I had a call with one of my clients, and we were going over the amount he owes to the IRS. We dug into what the tax was, what the interest was, and what kind of penalties he had. And it wasn’t long before he discovered that the amount he owed was twice as much because of interest and penalties. (Yes, those numbers can go up pretty quickly.)
As you can imagine, he was utterly shocked.
The good news was that I was able to wipe out about $12,000 in penalties by just asking for a first-time penalty abatement. Yay, I love reducing people’s tax debt.
So, my question to you for this morning is. Do you think you qualify for first-time penalty abatement too? Maybe you do. Let’s see. Can you answer the following questions in the affirmative?
- Have you filed all your tax returns for the last three years?
- You have not received penalty abatement in the prior three years?
- Have you paid the tax owed?
If you can, then you can qualify for it. If you can’t, then it is ok. You see, this is just one of the many strategies you have available to reduce your tax debt. Also, first-time penalty abatement is a per-year analysis. So just because you didn’t qualify for one year doesn’t mean you can’t qualify for another.
After all, my client and I used first-time penalty abatement, filing missing tax returns to replace the substitute returns filed by the IRS, and analyzing his financial and tax information to come up with a plan to reduce his tax debt and get him into a reasonable payment plan.
And that is how you finally tackle your tax debt. You implement a variety of strategies available to you to reach your desired outcome of no more scary IRS letters.
To your clarity,
Claudia
And if you need help with your tax debt, go to www.talktoclaudia.com today to learn how we can resolve it.
