Penalty Abatement Can Save You Money – Even if You Suffer from “Failure To File” Syndrome

Yesterday I wrote about Charles J. O’Byrne, the top government aide who claims that his 5 years of tax debt amounting to $300,000 was a by-product of his bouts with depression and a condition that makes it difficult for him to fill out his tax returns.

Tax evaders have been claiming to suffer from “failure to file syndrome” for years – even though it’s really not likely to hold up in front of the IRS.  If you owe several years of unfiled tax returns, the best thing to do is exactly what Charles J. O’Byrne was advised to do by his attorneys: file delinquent returns beginning with the oldest one due.

By doing this, O’Bryne could have established current compliance and good faith and credibility with the IRS and may have been able to avoid some hefty penalties. Even though O’Byrne did not seek to have his penalties reduced, if he had complied with the tax advice he’d received he may have been able to request an abatement of penalties and save nearly $100,000.

According to the New York Times, to repay his taxes,  O’Byrne sold tens of thousands of dollars in assets, took out bank loans in addition to borrowing heavily from friends and relatives. The IRS can assess 148 different types of penalties. And in 2006, the IRS issued over $20 billion in penalties!

But there is hope for taxpayers who are hit with IRS penalties. In many cases where a taxpayer requests abatement, the IRS removes 100% of the penalty. Generally, our penalty abatement request cases are heard and settled, in the client’s favor at the Appellate level of the IRS. Remember, the IRS is not in the business of writing off penalties, so you will want expert tax relief help and representation.

Fighting the IRS on your own is a “lose/lose” proposition. You WILL get “creamed”. It’s like to going to court without a lawyer. If you have incurred the penalty wrath of the IRS and have good reason to have the penalties removed, then contact a tax resolution specialist.

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One Response to “Penalty Abatement Can Save You Money – Even if You Suffer from “Failure To File” Syndrome”

  1. Tax Help Small Business Owners Struggling to Meet October 15th Tax Extension Deadline | Tax Attorney and Tax Resolution Services: IRS Help Blog Says:

    [...] penalties for failure to file are severe–don’t gamble with your bank account on the table. It’s still not too [...]

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