Interest and penalties

A common question from a reader about the IRS settling for tax and forgiving the interest and penalties: I owe the IRS $35,000 – I would like to pay what I owe, but the interest and penalties just seem awfully high.  I want to offer to pay the IRS what I originally owed – will […]

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As a general rule, count on IRS interest and penalties doubling the amount you owe every five years.   Interest is only part of the cause; it is the penalties that really hurt. Interest rates charged by the IRS are not unfair – the federal short-term  rate plus 3%.  This has left IRS interest hovering […]

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Some things can be simple to negotiate with the IRS.  If you are looking for a great way to repay an income tax liability to the IRS, consider a streamlined installment agreement. Streamlined installment agreements are available to anyone who owes under $25,000 and can afford to repay their balance in five years.  If you […]

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I received a call today from an enrolled agent for my help with a client who was having problems not only with the IRS, but credit cards as well.  As usual, my enrolled agent friend got it right – bankruptcy was likely on the horizon for us to take care of both problems simultaneously. Two basic rules on owing […]

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Trying to repay the IRS in an installment agreement can be difficult.  The interest and penalties the IRS charges doubles the original amount of tax you owe every five years. Your installment agreement may keep the IRS at bay, but your tax liability does not get paid off. The tax code and the IRS offers no […]

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A funny thing happened to me on the way to my mailbox today.  There was a letter from the IRS.  Sure, I get plenty of IRS mail everyday – I am an IRS defense attorney.   But this one had my name on it. I put myself in my clients’ shoes.  I understood their fears. […]

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