Remove Tax Penalties with Professional Help

When the IRS believes you’ve made a mistake with your income taxes or it discovers you haven’t filed your taxes at all, it will assess a penalty and interest charges. If you’ve received a notice indicating that you owe a penalty, do not ignore it. Ignoring tax notices can result in wage garnishment, asset seizure and other extremely undesirable consequences.

How Much Tax Debt Do You Have?If the IRS or another tax authority has assessed a penalty for nonpayment or underpayment of taxes, call BC Tax. We help clients across Denver, the state of Colorado and the U.S. with IRS penalty and tax abatement. We can negotiate with the IRS on your behalf and request a tax penalty abatement.

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Information on First-Time Penalty Abatement

The IRS or other tax authorities can assess a penalty for a variety of reasons. These reasons include failing to file, failing to file on time without an extension and failing to pay income taxes on time. The good news is that the First Time Penalty Abatement policy can help you avoid paying this fee.

Here’s how first-time penalty abatement works. With every day that passes without you paying your penalty, the IRS will increase its amount until you pay your bill in full. But if you meet certain qualifications — such as making a payment arrangement — or you haven’t owed a penalty in the prior three years, the IRS may waive your penalty.

If you’re unsure whether or not your penalty qualifies for abatement, keep in mind that you may qualify based on Reasonable Cause.

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What Is Reasonable Cause?

If you don’t qualify for the First Time Penalty Abatement program, you may get penalty relief in other ways, such as Reasonable Cause. If you have a valid reason for failing to file a return or make a tax deposit, the IRS will waive the penalty.

Common situations that qualify for Reasonable Cause include death, serious illness, natural disaster, fire and the inability to obtain necessary documentation. The IRS may also accept other reasons not listed here that prove you acted responsibly and were unable to file or pay for reasons beyond your control.

The IRS will look for proof that you were unable to meet your tax filing or payment obligations. They’ll want to know what happened and where, how events affected your ability to meet other daily responsibilities and how you handled your affairs once you realized you couldn’t meet your obligations. You should expect to provide documentation such as court records or a letter from a physician confirming incapacitation.

Reaching out to BC Tax as soon as you have a problem will help you minimize or eliminate penalties and associated interest.

Will the IRS Abate Interest Charges?

Yes and no. The IRS will not abate interest charges on your unpaid back tax balance, but it may reduce or eliminate interest associated with the penalty. It’s important to remember that the IRS will continue to accrue interest until your tax bill is paid in full.

Turn to BC Tax for IRS Underpayment Help in Colorado and Beyond

Do you need tax abatement help? Need to reduce your penalties? BC Tax has helped individuals and businesses in Denver, Colorado and across the country win IRS tax penalty abatement from federal and state tax authorities. If you’ve received a notice from the IRS or your state tax authority, don’t ignore it — call us instead. We’re ready to serve you.

“One of the biggest reasons I started looking for tax resolutions is because I thought I was paying way more than I should in past taxes. I spoke with one of the staff members at BC Tax, and he said that they could look over all of my documents and tell me what my options were. When I finally decided to let them do that, they were able to significantly reduce my debt, get rid of my penalties, and set up a payment plan I could keep up with. This is now definitely a step in the right direction.”

– C.F. , Texas

Get in touch with us by calling (800) 548-4639 or by filling out our online form.

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Corey Davis

17:30 24 Sep 23

I worked with BC tax , not only did they not deliver on helping lower my tax liability owed, after paying the $1250 fee they come and ask for... additional 1250. I stated the experience did not meet expectations and I wasn’t working with them any longer , they call and email asking if we can do a payment plan ( ask if I can’t pay a measly$ 1250) . I can but I won’t waste my money. This firm os just out to take your money but fail to deliver the services promised. You can never call and get an answer, always voicemails till they call you . Don’t waste your time and money.read more

Alesia Dietrich

22:31 07 Jul 23

Dan Roby, a gentleman, a wealth of knowledge, a friend. This man took the time to tell me not once, but twice how to handle my awful issues with the... IRS. Even though they’re not extreme, they are enough to keep me from sleeping at night. Dan explained that I should reach out to my original IRS case worker and explain to them my current position and be super honest. Explain a change of circumstances, explain the fact that I am soon to have to pay back student loans that I’m living paycheck to paycheck, and that I’m even having a hard time putting food on my table. And to ask the IRS person to give me an extended “loa” of all payments.… After being on the phone with the IRS for over two hours, and having multiple screens open, with my bank accounts my net pay, what I owe for different bills, The IRS gave me a conditional extension on what I owe them. What a sigh of relief. I wouldn’t have been able to do this on my own, without Dan’s kind knowledgeable advice, I came out a winner. This man is so awesome and I would recommend him and BCTax to anyone in need of tax advice!read more

Scott Payne

14:10 06 Jul 23

I truly cant say enough good things about my experience with BC Tax. From the initial call they were very clear/concise with what I had ahead of me... and set clear expectations which helped calm my nerves. I really felt like I had a team of people helping me - and they were all on the same page.They cleared up something which had been hanging over my head for several years - IN LESS THAN TWO WEEKS!!!WHEN you choose BC TAX, have your documents (Bank statements, income information, etc...) ready for them or be willing to get them the information they need quickly - this will help them help you!!!.read more

How To Reduce Tax Penalties