Tax Penalties, Penalty Abatements, and Tax Interest Owed

In all tax liability cases, penalties and interest are assessed on the principle tax owed.  Interest also compounds against itself and against penalties.  A penalty may be abated, or withdrawn, if the taxpayer provides logical and compelling reasoning – in writing – for the issue that resulted in the liability.  The IRS will not reduce interest charges, but some states will, when properly requested by a taxpayer.  Please contact Larson Financial to get answers specific to your situation.