As they say, taxes are as certain as death, and if you don’t pay yours, you will need to pay penalties. That said, what if you had a reasonable excuse why you weren’t able to pay, do so on time, or file the right amount? Can’t you be pardoned?
The “Silly” Defenses that Are Actually Acceptable
There are some people who had tax payment or filing offenses that have successfully been cleared of their charges or avoided grave consequences because of reasons that may seem silly. These include faulty or inefficient tax preparation software, and even insanity. Of course, such claims need to be backed by hard evidence.
The Unexpected and Understandable Situations
Even if there isn’t any technical error or mental condition, you may have simply missed paying your due taxes and balances because of financial hardship. You might have lost your job, got robbed and was unable to recover what you loss, or got seriously ill without health insurance to cover all the expenses. Whatever you have left or whatever you earn may only be enough to pay for your basic necessities every day.
If that’s the case, you can apply for an offer in compromise (OIC). This IRS program will allow you to clear your debt by paying only part of what you owe (as low as 1%) in the form of lump sum or periodic payments. With a skilled IRS tax attorney, you can negotiate and try lowering your accountabilities in the end.