IRS Civil Penalties and Payroll Tax Penalties

Find relief from crushing penalties and interest charges. Get help with back taxes through expert tax law services from the Wiggam Law team.

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Don’t let IRS civil penalties make a bad tax situation even worse.

Tax debt is enough to handle without penalty and interest charges racking up. Strict Failure to File, Failure to Pay, and Trust Fund Recovery Penalties can make resolving your tax liabilities seem impossible.

Stop mounting penalties from compounding your tax-related stress and standing in the way of your financial freedom.

Tax attorney reviews civil penalties

Get Relief from Civil Penalties and Interest with Wiggam Law

Many taxpayers don’t know how to or have the knowledge to ask for penalty relief. That’s where Wiggam Law’s team of tax experts comes in. We are here to provide help with your back taxes and represent you in your fight to get relief from penalties.

Get Financial Relief

Protect Your Assets

Get Peace of Mind

Negotiate with the IRS to Remove Penalties and Interest

Stop your tax liabilities from spiraling far outside of your means to pay. Find the right solution to lighten the burdens of IRS civil penalties and business penalties with Wiggam Law.

Penalty Abatement

Our attorneys guide you through the complex process of requesting relief from IRS civil penalties for first-time offenses or hardships. We take care of the hard work and negotiate with the IRS to get the best possible result.

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Trust Fund Recovery Defense

Protect your business from fines and interest over unpaid payroll taxes. We help you act quickly to satisfy your tax obligations and avoid IRS collection actions that can put your business at risk of closure.

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Creating a Payment Plan

Reduce accruing interest and penalties with installment-based payment plans that give you more time to pay your tax debt. Wiggam Law helps you prepare and negotiates on your behalf for the best possible result.

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Don’t face IRS civil penalties alone.

It’s hard for the average taxpayer to deal with the IRS. With Wiggam Law on your side, you don’t have to. Your issues are in the hands of experts who fix tax problems just as big as yours, or bigger, every day. A blend of tax law expertise and a consummate client-first attitude means you can count on us to help with your back taxes and get your life back on track.

Leave solving your tax problems to us.

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Tax Penalty

IRS Civil Penalties FAQ

The IRS uses penalties and interest charges to encourage taxpayers to comply with tax laws. Civil penalties are most often monetary fines assessed if you do not file or pay your taxes. Extreme cases are given criminal penalties.

If you don’t file a tax return and you’re required to, the IRS will send you a notice about the Failure to File (FTF) penalty. This penalty is 5% of your balance due per month, up to 25% of the debt owed. If you don’t pay what you owe on time, you could also face the Failure to Pay (FTP) penalty. This penalty is 0.5% of your debt balance per month, up to 25% of your debt owed.

Pay as soon as possible to avoid compounding interest, IRS collection actions, and legal trouble.

The most common civil penalties are Failure to File (FTF) and Failure to Pay (FTP) penalties. If you miss the deadline to file, you could be charged with both. These severe penalties add up quickly, leaving most taxpayers overwhelmed and unable to satisfy their tax debts.

  • Failure to File: When you fail to file your taxes by the deadline, the IRS will charge 5% of your unpaid taxes for every month you are late filing. The maximum penalty is 25%. The penalty for Failure to File is often much larger than the Failure to Pay penalty.
  • Failure to Pay: If you file your taxes on time, but fail to pay the amount you owe, the IRS will charge a penalty of .5% per month for the unpaid amount. This penalty caps at 25%.

The IRS can attempt to collect a civil penalty for up to 10 years after the tax liability assessment has occurred.

It is possible to remove a civil penalty and prevent it from continuing to grow your tax liabilities. Taxpayers who are assessed Failure To File and/or Failure To Pay penalties can request penalty abatement. The IRS will waive penalties under two circumstances:

  • First-Time Penalty Abatement: This is your first time filing late or missing a payment, and you can demonstrate at least a 3-year history of compliance.
  • Reasonable Cause Penalty Abatement: You can prove that outside circumstances, such as natural disasters, serious illness or death in the family, mistaken tax advice, or extreme hardship prevented you from making an honest effort to comply with your tax obligations.

Other penalties, such as accuracy and fraud, require other IRS procedures to determine abatement.

Still have questions about getting relief from IRS penalties? We have all the answers.

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IRS Civil Penalty Success Stories

$29,570 Saved

The taxpayers owed for tax years 2014-2016 and the IRS had filed Federal Tax Liens against their real estate. We assisted the taxpayers with removing the liens from their property so it could sell. Additionally, we negotiated a penalty abatement with the IRS, which resulted in the taxpayers receiving a refund over $29,570 after the closing.

$359,078 Saved

Our client was suffering after their former employee embezzled the company’s payroll funds. Between the IRS and Georgia, our client owed a substantial amount. Our Penalty Abatement Requests saved our client $359,078 across their combined federal and state liabilities.

Find the relief you need from mounting IRS penalties and interest.

Reach out to Wiggam Law today. Call 404-233-9800 or contact us:

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