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Tax Penalty Relief

Experienced Virginia Tax Lawyer Pursuing Tax Penalty Relief

The federal government takes the collection of taxes seriously.  When a taxpayer fails to properly pay the full amount of taxes due or otherwise violates a provision of the Internal Revenue Code, the consequences can be severe.  A serious tax code violation can lead to substantial civil fines and penalties and, in some instances, criminal prosecution.

Thorn Law Group represents businesses and individual taxpayers in Virginia and around the world who are involved in significant tax disputes and controversies with the IRS.  Our lawyers work directly with clients to have their tax penalties reduced and in some cases completely eliminated.  We are a highly knowledgeable legal team prepared to handle a full range of tax penalty matters, including:

Penalties for Failing to File a Return:  Taxpayers who fail to file required returns with the IRS, including income tax, estate and gift tax, excise tax, withholding and employment tax and information returns can be assessed fines and penalties.  When a taxpayer fails to file a required return by the IRS deadline, the taxpayer may face a failure-to-file penalty which is generally a 5% penalty on the total taxes owed, with an additional 5% added for each additional month or fraction of a month, up to a maximum of 25%.

Penalties for Failing to Pay Taxes:  Taxpayers who fail to pay their taxes on time or fail to pay the full amount due are subject to failure-to-pay penalties.  These penalties are normally assessed at the rate of 0.5%  of the unpaid tax amount, with an additional 0.5% added for each month or portion of a month that the failure to pay continues, up to a maximum of 25%.

Accuracy-Related Penalties:  When taxpayers fail to properly report their tax liabilities, they can be subject to accuracy-related penalties.  Depending upon the particular circumstances, the penalty assessed on the understatement of taxes will be 20% or 40%.

Tax Shelter Promoter Penalties.  These penalties are imposed on any person who organizes, assists in the organization of, or participates in the sale of any interests in a tax shelter where the person furnishes or causes another person to furnish a statement regarding the availability of any tax benefit by reason of participating in the tax shelter that the person knows or has reason to know is false or fraudulent as to a material matter.

Penalties for Tax Fraud:  Taxpayers who commit tax fraud run the risk of severe penalties.  If the IRS suspects that a taxpayer has committed tax fraud during the tax audit process, it can impose a civil fraud penalty of up to 75% of the amount of the total tax owed.

Penalties for Failing to Disclose Offshore Bank Accounts:  Individual taxpayers, businesses, trusts, and other entities in the U.S. and abroad are required to report offshore accounts and assets to the IRS.  Taxpayers who fail to comply with IRS requirements can be subject to substantial fines and penalties.  The IRS Offshore Voluntary Disclosure Program gives certain taxpayers the opportunity to avoid the most severe penalties by making a full and voluntary disclosure of their unreported foreign accounts to the IRS.

Penalties under the Affordable Care Act:  The Affordable Care Act requires taxpayers to secure qualifying health insurance.  Taxpayers who do not have minimum essential coverage for themselves and each member of their family, or otherwise qualify for an exemption, will be required to make a shared responsibility payment when filing their federal income tax return.  The Affordable Care Act also sets forth specific health insurance coverage and IRS reporting requirements for small and large employers.

Contact Thorn Law Group

The attorneys at Thorn Law Group are experienced tax law professionals who advise and represent businesses and individuals with regard to penalty disputes with the IRS. If you need assistance in connection with a penalty dispute, we encourage you to schedule a consultation with a Virginia tax attorney at our firm.

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