How To Successfully Request IRS Penalty Relief

Federal tax penalties have always been an IRS priority.  But, perhaps more so today than three decades ago.  For example, in 1987, the IRS reported that it had assessed penalties of approximately $14 billion.  Compare that figure with fiscal year 2019—a year in which the IRS assessed over $40 billion in penalties.  The number of penalty assessments (and corresponding government revenue) against taxpayers is only expected to grow in the near future.

IRS priority alone, however, has not been the sole cause of the staggering rise in penalties.  Indeed, congressional action has only buttressed this phenomenon.  In 1955, the Internal Revenue Code (the “Code”) housed approximately 14 penalties.  Today, the number of penalties hovers closer to 150.  Put simply, the IRS has an arsenal of various statutory provisions to use and penalize unwanted taxpayer conduct, from the late filing of a return or information return to the late payment of tax or even the negligent filing of a return.

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