The IRS believes they have an obligation to advance the fairness and effectiveness of the tax system. Penalties were established to meet this obligation and the IRS decided that penalties should:

• Be severe enough to deter noncompliance
• Encourage noncompliant taxpayers to comply
• Be objectively proportioned to the offense
• Be used as an opportunity to educate taxpayers and encourage their future compliance.

The IRS believes that penalties encourage compliance in areas that cannot be reached through audits or other programs.

You know that penalties will not eliminate the problems with not following the tax laws, but the IRS does not agree with your way of thinking.

If you owed taxes, you know how quickly penalties accumulate on the unpaid debt. You can owe more in penalties than tax. You may have started with a manageable tax liability that has quickly become unmanageable.

There are ways to eliminate or avoid penalties based on all the facts and circumstances in your situation. You must “exercise ordinary business care and prudence in determining your tax obligation” but be unable to comply with that obligation. You must establish that you acted in good faith and the failure to comply with the tax law was not due to willful neglect.

We are experts and the best qualified to assist you with abatement of penalties. Contact TPS in order to avoid or eliminate penalties.

You can reach TPS by telephone at 678-518-4442; toll free at 1-866-518-4442; by fax at 678-518-4064; or by email at taxspecialists@bellsouth.net.