If you have received a notice from the IRS for an IRS charge of a civil penalty for not paying your taxes, there are several options open to you. If you are going to attempt to resolve the matter in a one-on-one meeting with an IRS representative, you are strongly advised against it, as you may never get a chance to clear your name of this financial burden. For anyone not prepared for a meeting with the IRS, the easiest way to resolve an IRS charge of a civil penalty is to settle the matter with the IRS before the due date of the IRS tax return due. By undertaking to settle the IRS civil penalties issue before the due date, many taxpayers can avoid making embarrassing mistakes and avoid additional charges for errors and omissions which may have accrued during the due date. Unfortunately, many taxpayers will attempt to resolve the liability without involving an attorney. This is often because they lack the knowledge and experience needed to prepare a strong defense. It is also common for taxpayers to hope that resolving the liability quickly will preclude any further action by the IRS. This is not helpful, as the IRS can and will charge additional tax penalty fines if the taxpayer does not satisfy the demands placed on him or her.

how the irs civil penalty works

The IRS civil penalty system is designed to provide taxpayers with a means of protecting their rights and interests while ensuring that the IRS cannot take money from a deadbeat taxpayer without judicial notice. While civil tax penalties cannot be discharged in court, the taxpayer may still be able to recover them through appropriate legal channels. Recovering civil penalty money requires a detailed strategy that begins with knowledge of the IRS’s collection methods and the procedures it uses to pursue delinquent taxes. The IRS seeks two major remedies when it comes to trying to recover civil penalties: jail time and tax relief. Jail time basically amounts to probation and the second most common outcome, in some cases, is a significantly lowered tax bill. Taxpayers who are guilty of criminal tax evasion will face jail time, but this outcome is usually a lengthy one. In some cases, the IRS will implement an Internal Revenue Code provision that bars a taxpayer from owning or operating a business within a specific time period. The taxpayer may be required to reimburse all monies collected for the criminal acts, but may be eligible for a tax refund at the end of the period.

Taxpayers may also receive tax relief in situations where they have otherwise met their liability requirements. Taxpayers may receive a tax resolution, in which case the IRS will not pursue criminal penalties. Taxation resolution involves a settlement between the IRS and the taxpayer. Taxpayers may also receive a tax resolution, in which case the IRS will return your deficiency and ask the parties to settle their accounts. If no settlement occurs, the IRS will impose the deficiency and refer the matter to a tax court for collection. Taxpayers should also be aware that they may be granted an abatement if they can show that a large portion of their penalty is due to a large number of missed tax payments rather than a lack of knowledge on tax matters. Abatement will not prevent the taxpayer from being assessed penalties or interest. It will, however, relieve the additional burdens associated with the criminal fines and penalties for abatement.