The firm has expertise in representing individuals, shareholders, partners, members, corporations, LLC’s, partnerships, estates, and others in fighting the assertion of penalties by the IRS and state tax agencies. Penalties which are often asserted by tax agencies include late filing penalties, late payment penalties, and accuracy-related penalties. But there are many more penalties which are asserted by the IRS and state tax agencies. These penalties can include trust fund recovery penalties for unpaid payroll taxes, fraud penalties, penalties for failure to file FBARs and other information returns relating to foreign income and assets, economic substance penalties, promoter penalties, return preparer penalties, overvaluation penalties, undervaluation penalties, as well as many other types of penalties.
Experienced tax professionals can be of great help to taxpayers in determining when penalties apply and in strategizing to minimize potential penalties. Obtaining help from experienced tax professionals is particularly important where large penalties can be imposed. The penalty for failure to timely file FBARs (foreign bank account reports, FinCen Form 114) can be as large 50% of the high balance in all non-compliant bank accounts for each year for which there is a failure to timely file an FBAR. Civil fraud penalties imposed by IRS are 75% of the amount of tax owed as the result of the adjustments to a tax return which the IRS believes are due to fraud. Our attorneys are well versed in defending against the assertion of penalties and in seeking the reduction or abatement of penalties which have already been assessed.