We get this question a lot from clients and those that are simply seeking information.  Sometimes its less of a question and more of a statement, something like –


That’s fine, but you may not get too far that way.

The basic answer to the question is… pay it, then ask for relief.  If you can’t pay it all at once, set up a monthly Installment Agreement, then ask for relief.  

Tax Compliance Top Priority

The IRS wants to see a taxpayer in compli...

 IRS Refund Statute Expiration Date and Penalty Relief

Did you know that the IRS has something called the Refund Statute Expiration Date (RSED)? 

The IRS is prohibited from issuing a refund of abated penalties and interest on a full paid account if the RSED has passed.

The Internal Revenue Manual section 25.6.1.10.1.1(6) states:

a claim for credit or refund must be filed within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later.

IRS First Time Abatement (FTA) Rule

The IRS First Time Abatement (FTA) is a great way to remove a penalty with a single phone call to the IRS.  However, you need to either have a formal Installment Agreement in place or have no balance due.

Fresh Start Tax Relief can help you request your FTA from the IRS.  We'll help you identify the penalty(s) that qualify for FTA and tell you what to say to the IRS representative to get it.

In general, the best time to request the abatement of penalties associated with your IRS back tax debt is after you've gained current tax compliance.  Make sure all tax returns are filed and that you are making all 1040ES payments timely.

If you submit your request for the abatement of penalties while you are missing tax returns or while you are still accruing additional back tax debts, the IRS will be less likely to believe your reasons for falling behind.  The Service likes to see a defini...

At the end of 2014 Fresh Start Tax Relief was hired by a local Chicagoan.  He lives two blocks from our office.  A balance due on his 2013 1040 tax return prompted him to call.
 
He already had a formal Installment Agreement in place on a $2,500 tax debt from 2010 and wasn't sure how to handle an additional $10,000 tax debt from 2013.

Here's what we were able to help him figure out.

• His accountant did not eFile his 2013 tax return as promised.
• He will be able to include his new 2013 balance due ...

A client recently sent me an email asking me to review his request to the IRS for penalty relief.  The first thing I notices is that his written request was for penalties covering two separate tax years.

The first piece of advice I gave him was to submit a separate request for each year.  Send them about a week or two apart.  And, mail each request via US Mail Certified Receipt. 

Separate requests will give him a better chance at penalty relief.  If the requests are together in the same wr...

Did you know that the IRS may accept your request for penalty relief due to Reliance on the Advice of a Tax Advisor?  This reasoning for the abatement of IRS penalties generally relates to the Accuracy-Related Penalty.

Read more about it in the Internal Revenue Manual section 20.1.1.3.3.4.3 – Advice from a Tax Advisor.

At Fresh Start Tax Relief we want to help people get out from underneath of their IRS tax debt without paying high fees to tax resolution firms and attorneys.  Most individuals that owe a tax debt to the IRS can resolve it without outside help.  You can even request the removal of penalties on your own. 

Here are two tips to help you remove IRS penalties on your own.

The IRS can remove penalties over the phone.  However, there is a dollar threshold.  Although the dollar threshold changes f...

You're probably aware that the IRS charges large penalties to those that fail to file and pay their taxes on time.  Most of our clients have penalties assessed against them and would like to get them removed.  They just don't know how.

At Fresh Start Tax Relief we investigate our clients IRS case to determine the total penalty amounts assessed, the types of penalties assessed and the periods the penalties have been assessed.  We also tell our clients how to request the removal of their penal...

When you're requesting the removal of IRS penalties, there are a few things that you should do beforehand.  The first priority when resolving and reducing your IRS tax debt is gaining compliance.  It's a good idea to be in tax compliance before you request the removal of penalties.  The IRS likes to see that the problem that caused you to fall out of tax compliance and accrue the penalty has been fixed.  It is difficult to sell the IRS a reasonable cause abatement request when you are still n...

Straight from IRS notice 746, the information below explains the combined Failure to File and Failure to Pay penalties.

"Filing and Paying Late - IRC 6651 — We charged a 5% combined penalty of 4-1/2% for filing late and 1/2% for paying late because, according to our records, you filed your return late and didn't pay your tax by the due date of your return. The combined penalty is 5% of your unpaid tax for each month or part of a month your return is late, but not for more than 25% (22-1/2% l...

Fresh Start Tax Relief recently had a client that needed to know whether or not he qualified for the IRS Offer in Compromise (OIC).  Most of the facts were in his favor.  His IRS tax debt totals more than $30,000.  His family's monthly expenses do not exceed the IRS Collection Financial Standards.  He has zero disposable monthly income and cannot make a monthly payment toward his tax debt.  His tax liability was the result of a fraud investment scam that was out of his control.  But, there is...