Penalties And Interest


Interest accrues each month that a tax debt remains unpaid. Although penalties often can be forgiven or reduced, the IRS does not usually forgive interest. However, if you choose us to “work your case”, often we can either amend a prior return, or deal with the tax problem that created the interest from accruing in the first place. We don’t solve them all, but at a minimum we will also work out a plan to pay off your debt that is fair and reasonable and make the IRS problem go away.


The IRS and State agencies assess penalties for generally two reasons: underpayment of taxes owed and/or non-filing of tax returns. First, we will deal with the tax problem that caused the penalty in the first place and try to eliminate it. Second, we will try to get any remaining penalties reduced or eliminated. However, if you don’t deal with the notices from the IRS or State tax agencies penalties and interest will continue to pile up.