IRS Penalty Abatement - Remove or Reduce Federal Tax Penalties

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) January 3, 2012 -- Enrolled Agent Work Gives Ways For Taxpayers to Avoid Penalties

Tax professionals who receive enrolled agent training learn about penalties the IRS imposes as well as how to avert them. A variety of penalties are assessed for different situations. An enrolled agent program familiarizes a tax practitioner with every type of IRS penalty. This permits enrolled agents to provide taxpayers with clear explanations about the causes of penalty assessments.

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IRS Penalty Abatement - Remove or Reduce Federal Tax Penalties

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Taxpayers are often surprised when they receive an IRS notice imposing a penalty. In fact, the IRS may calculate multiple penalties on the same taxpayer for different purposes. Consequently, expertise about these penalties is valuable to marketing and client relations for an EA practice.
The knowledge acquired for EA Certification allows enrolled agents to aid taxpayers in avoiding IRS penalties. In addition, enrolled agents learn to recognize penalty situations that previous taxpayer actions have caused. They know when the IRS may waive a penalty involving a defensible situation of honest error rather than willful misconduct. Therefore, obtaining penalty abatement services is another benefit to taxpayers conducting an enrolled agent search for a tax specialist.

So, a distinguishing feature of enrolled agent work is that it can entail both procedures to avoid tax penalties and negotiations with the IRS for penalty abatement. Therefore, a review of tax penalties is helpful for reinforcing details about penalized situations.
The most common offense incurring an IRS penalty is late payment of taxes. Taxpayers who pay late are penalized 0.50 percent per month after the due date. Enrolled agents know that a better choice for taxpayers is obtaining installment payment agreements. In these cases, the IRS normally charges only a 0.25 percent penalty.

Filing a tax return after the due date is even worse than paying late. The penalty for late filing is 5 percent per month – not to exceed a total of 25 percent. Receiving an automatic six-month extension to file is always better. But enrolled agents explain to taxpayers that extensions only avert late filing penalties; any tax liability is still payable on the original due date.
By far, the most misunderstood penalty is the assessment for underpayment of estimated tax. Tax rules require a taxpayer to have sufficient withholding covering tax liability or make equal estimated tax payments throughout the year comprising the deficiency. At the tax filing deadline, a taxpayer avoids penalty by owing less than $1,000. Enrolled agents help individuals avoid this penalty by assuring that withholding and estimated tax payments comprise at least 90 percent of prior year tax liability – or 100 percent for high-income people.

The one penalty to absolutely avoid is the charge for underpaying taxes. This is assessed on taxpayers who fail to report all of their income or take ineligible tax deductions. Enrolled agents can help those persons who simply had poor record keeping. However, a taxpayer with blatant disregard for tax rules or improper claims of tax benefits is certain to incur a penalty of at least 20 percent of the underpaid tax.

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Eliminate IRS penalties through a Penalty Abatement. Qualifications for this type of relief and how to file with the IRS

More information can be found online at http://www.certifiedtaxgroup.com

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