If you have got unrecorded tax returns, the income tax office can charge you for the quantity of back taxes owed, with enough interest and penalties to exponentially increase your original bill. Taxpayers who are victims of bizarre circumstances often request for penalty abatement in search of tax relief. In several cases once a person requests for penalty abatement, the authority removes 100 % of the penalty. You will be able to get penalty abatement, if you consult a professional to deal with the matter.
Go for professional help
Often common people with no knowledge get confused on dealing with their taxes and penalties. It is necessary to seek the help from a reliable tax relief firm to offer you guidance. Getting penalty abatement is beneficial if you do it right.
A professional tax lawyer or certified tax resolution specialist has the expertise to offer you real guidance on dealing with your taxes. They can compose a legal letter, explaining your circumstances and citing recent or past proceedings where the verdicts were in favor of the taxpayer with a similar set of circumstances as yours.
Come clean or be ready to go behind bars
Those who don’t file and pay their taxes are guilty in the eye of the authority. You can be prosecuted and fined for not paying your taxes. The longer you wait to file, the dimmer the chance for the authority to grant penalty abatement. The penalty for filing late is mostly 5 % every month of the calculable tax quantity due which may double or triple your bill.
It’s never too late to file a return
If you do not file a return, you are guilty. A substitute for this won’t offer you credit for deductions like exemptions for your spouses, children, taxes and interest on your home and business. The rules and regulations are there, however they enable taxpayers or their tax lawyer or specialist to file corrected returns at any time. This can bring you into a position to negotiate for penalty abatement.
Get your facts right with supporting documentation
To qualify for tax relief and penalty abatement, you need to have a reasonable cause. There are no exhausting and quick rules when it comes to penalty abatement; however there square are some general pointers. Your tax lawyer can assist you in deciding if you qualify. The income tax office can consider conditions like a death in the family, a divorce with missing tax records, a civil disturbance, your inescapable absence, a theft or destruction of your tax records or a victim of tax fraudulency.
Be ready to support your reasonable cause with proper documentation. If somebody died, bring an authorized copy of their death certificate. Same applies in case of divorces. If your house or business was broken into or destroyed, or if you were cheated, bring the police reports and insurance documentation. The more the detail is, the better.