The Internal Revenue Service (IRS) has the authority to impose over 150 different penalties under the federal tax code. That’s a pretty significant number. And while some of those penalties address very specific tax situations, the mere thought of facing an IRS tax penalty can be stressful and overwhelming for many taxpayers.
Unsurprisingly, the penalty provisions in the U.S. tax code are hard for the average taxpayer to understand. And the process of negotiating tax penalties with the IRS can be daunting. Whether you’re facing penalties for late filing, underpayment of taxes, or other infractions, negotiating requires intricate knowledge of tax laws and procedural requirements to navigate successfully. It is not straightforward, even for the most skilled and experienced enrolled agent.
Why Negotiating Tax Penalties Is So Challenging
The IRS imposes tax penalties to encourage compliance with tax laws. These penalties can quickly accumulate, potentially adding a significant financial burden if not addressed promptly and effectively. Attempting to negotiate these penalties on your own is particularly challenging as the IRS operates within a complex framework of regulations and guidelines. A knowledgeable enrolled agent understands these intricacies, knowing the appropriate channels and strategies to pursue penalty abatement or reduction.
Experience and Skill Matter When Negotiating Tax Penalties
An experienced, skilled enrolled agent will present your case in the best possible light, utilizing a deep understanding of IRS policies and precedents to argue for penalty relief. Whether it’s demonstrating reasonable cause for the delay or showing genuine efforts to comply with tax obligations, the expertise of a knowledgeable enrolled agent will strengthen your position.
Don’t try to negotiate tax penalties with the IRS yourself. Enlist the help of Highland Tax Group, where our enrolled agents share over 27 years of combined experience and a demonstrated commitment to delivering taxpayers the best possible results. Reach out to our team today to learn more.