Tax Penalties Attorney in Salt Lake City, Utah
If you live and earn in Utah or anywhere across the United States, you have an obligation to prepare and file your income tax returns with the IRS. Failure to file your returns or pay your taxes may result in various penalties, including fines and interest. If you are facing tax penalties in your area and want to understand the reason and the next steps to take, consulting with an experienced Utah tax law attorney is vital.
At Common Law PC, we have devoted our career to advising and guiding clients in complicated tax matters involving tax penalties. As your attorney, we can evaluate the surrounding circumstances of your unique situation and enlighten you about what to do upon receiving a tax penalty. In addition, our trusted lawyer will advocate for your best interests and attempt to seek the most favorable resolution for your tax issues.
Common Law PC proudly serves clients across Salt Lake City, Utah, and the surrounding communities of St. George, Ogden, Provo, and Park City.
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Understanding Common Tax Penalties
Tax penalties comprise penalties and interests levied on taxpayers who fail to file their returns or pay their taxes. Some common tax penalties include:
Failure to File
The deadline for filing tax returns this year was April 18, 2023. The IRS may issue a failure to file penalty if:
You failed to file your taxes before the deadline.
You didn’t ask for an extension.
You miss the extended due date (October 15).
The failure to file penalty is 5% of the unpaid taxes every month, capped at 25% of your balance.
Failure to Pay
Tax authorities require you to pay your taxes by the due date. If you fail to pay, the IRS will charge you for failure to pay a penalty. The failure to file penalty is 0.5% of your back taxes per month, capped at 25%.
Failure to Pay Proper Estimated Tax
However, the IRS expects you to pay your taxes throughout the year upon receiving your income instead of lump-sum payments. If you owe over $1,000, the IRS may charge you for failure to pay the proper estimated tax penalty. Nonetheless, you can avoid this penalty by paying through estimated quarterly payments or withholding taxes from your income throughout the year.
A dishonored check occurs when you issue a check to cover your taxes but have less than the required amount in your bank account. As a result, your bank may bounce or dishonor the check. The penalty of dishonored checks is 2% of the check amount over $1,250.
Specific Tax Penalties in Utah
Here are some specific tax penalties in Utah:
Late Filing or Payment
1 – 5 days late: 2% of the unpaid tax.
6 – 15 days late: 5% of the unpaid tax.
16 or more days late: 10% of the unpaid tax.
Failure to Pay
91 – 95 days late: 2% of the unpaid tax.
96 – 105 days late: 5% of the unpaid tax.
106 days or more: 10% of the unpaid tax.
Incurring Tax Liability after an Audit
31 – 35 days late: 2% of the unpaid tax.
36 – 45 days late: 5% of the unpaid tax.
46 or more days late: 10% of the unpaid tax.
In addition, the minimum fee for each penalty is $20. An experienced attorney can assess your case details and educate you about what to do if you receive a tax penalty.
What to Do If You Receive a Tax Penalty
If you have received a tax penalty, you should take the following steps where possible:
Hire an experienced tax attorney to contact the IRS on your behalf.
Review the notice or letter sent to you by the IRS.
Identify the tax penalty or penalties you want to contest and build a solid case.
Explore the possibility of waiving the IRS tax penalty.
Explore your available tax resolution options.
Depending on your situation, the IRS may be able to remove the tax penalties. However, if you’re unable to settle the issue or are dissatisfied with the outcome, you may ask the tax authorities to forward your case to the Appeals Office.
Seeking Penalty Relief or Abatement
Thankfully, you may get the IRS to waive the tax penalties by seeking penalty relief or abatement. However, this will only be possible if:
You have a reasonable cause – for example, natural disaster or critical illness.
You reasonably relied on IRS advice, which led to a documentation error.
You took advantage of a statute that provides effective tax administration.
A reliable Utah tax penalties attorney can fight intelligently for your rights and help get the IRS to waive or reduce the tax penalty.
Dependable Legal Help
Receiving notice of a tax penalty can be confusing and unsettling. Although, you may be able to contest or get the IRS to waive or reduce the tax penalty. Nonetheless, resolving tax penalties with the IRS can be a tricky situation to navigate on your own. Therefore, if you have been subject to tax penalties, you need to retain a highly skilled tax law attorney immediately for detailed guidance.
At Common Law PC, we have the diligence and expertise to guide and represent clients in their tax penalty matters. As your legal counsel, we can investigate the reason for the tax penalty, determine if you qualify for penalty relief or abatement, or explore your viable options to fight the penalty. Our dedicated lawyer will fight vigorously for your rights and reach out to the tax authorities on your behalf to negotiate a feasible resolution or complete waiver.
Tax Penalties Attorney Serving Salt Lake City, Utah
If you have received a tax penalty that you intend to fight, call us at Common Law PC today to schedule a simple case assessment. Our trusted attorney can offer you the experienced guidance and representation you need to fight your tax penalties. We proudly serve clients across Salt Lake City, St. George, Ogden, Provo, and Park City, Utah.