Orange County Workplace Sexual Harassment Attorney

Sexual harassment can happen at any level of the workplace and often occurs between a superior employee and their subordinate. This power imbalance can make it difficult for employees to report harassment because they fear retaliation. Sexual harassment can have serious financial and emotional consequences for victims. A Los Angeles employment lawyer can explain your rights and fight on your behalf in court if you don't know where to go.

Blackstone Law, a prominent Los Angeles law firm dealing with sexual harassment cases, provides clients with quality care and aggressive representation. Victims of sexual harassment can suffer devastating effects, so it is important to find a trusted attorney who will represent them. We treat every client with the same honesty and integrity that we would treat our family members to create a lasting relationship beyond your sexual harassment case.

What is Sexual Harassment?

Sexual harassment at work is often not obvious. This type of harassment can happen in the workplace without you even knowing it. It is possible to feel some discomfort, or even have to confront unwelcome advances. Even though you experienced sexual harassment, you might not be able to label it.

What is Workplace Sexual Harassment and Why Does It Happen?

Sexual harassment in the workplace is defined by unwanted advances of a sexual nature. This may include requests for sexual favors (known as quid pro quo), which can create hostile environments. Title VII of the Civil Rights Act makes it illegal and applies to workplaces that have 15 or more employees.

If sexual harassment creates a hostile work environment, it means the behavior is so severe that it affects the working conditions of the employee or other employees, creating fear, anxiety, and discomfort.

What is Sexual Harassment at a Los Angeles, CA Job?

Multiple actions could be considered workplace sexual harassment in Los Angeles, CA. These include:

• Repetition of compliments or comments about an employee's appearance.
• Commenting on the attractiveness and professionalism of staff
• In a group setting, employees can share nude or embarrassing photos.
• Employees should be able to discuss sexual proclivities.
• Ask employees about their sexual preferences
• Jokes of a sexual nature
• Emails or texts that are sexually explicit or suggestive
• Unwanted gifts, such as sexual or romantic, can be left behind
• Spreading misinformation about a staff member's sexual nature

It is important to remember that workplace sexual harassment actions do not have to be directed towards you. Even if you are not the victim of the harassment, you can experience bystander harassment or trauma if you witness it in the workplace. For harassment to be considered, it must be offensive to the employee concerned and an equally reasonable person who is in the same situation.

How to Handle Sexual Harassment at Work

Although there are a series of reports you will need to follow at work, it is best to speak with an Orange County sexual harassment lawyer before proceeding. We want the best outcome for you and not for the harasser or employer. We will only offer advice and guidance that is best for you. We will explain how to report the incident(s), how to proceed, and what to do to get quick results.

We will also help you to take legal action if your employer doesn't respond promptly. You will be able to navigate this difficult situation with confidence if you know the extent of your rights, and what steps should be taken for your employer. If your employer fails to take the necessary steps to protect you we will file a claim to seek justice for the hostile work environment to which you were exposed.

What can I do to find out if I am a victim of workplace sexual harassment?

When victims are confronted with the truth of their sexual harassment, abusers may attempt to excuse their actions as workplace banter. Even worse, victims might be reluctant to speak out because they don't believe their experiences are harassment and fear retaliation. Sexual harassment must be understood as behavior or speech that is unwelcome and offensive to the victim. Although the law doesn't provide a complete list of offenses it does offer useful guidance. The Equal Employment Opportunity Commission (EEOC) states that workplace harassment could meet these criteria.

• Quid Pro Quo: An accuser may request sexual favors in return for rewards, promotions or to avoid punishment.
• A hostile work environment: If the harassment continues, instead of being isolated, it could be considered a hostile work environment. This could include threats, jokes, and behavior that intimidates or offends the victim.

Sexual harassment can cause extreme emotional distress and anyone can become a victim. You may also feel uncertain about your financial future, in addition to the emotional distress. Consider the context, frequency, and nature of the incident when determining whether or not you were subject to workplace sexual harassment.

How can I recover from sexual harassment?

You may want to file a complaint to the appropriate governing bodies before you file a lawsuit. In some cases, you will need to do so. Before you file a complaint, don't hesitate to speak with a lawyer about sexual harassment. In cases where you may face retaliation, this is especially important.

Many victims of sexual harassment have to bring a case before the judge to recover. Victims can sue the perpetrators for wrongdoing and hold them accountable by bringing a case to court. Victims can also receive all the benefits and compensation they are entitled to. A professional Los Angeles sexual harassment lawyer can also help victims keep their identities secret by using a variety of methods. Some tips for victims who have suffered sexual harassment include:

• Don't blame yourself. Many victims of sexual harassment or other sexual crimes will take responsibility for their actions and say they could have prevented the abuse. It is not your fault if someone abuses you.

• You may be subject to retaliation or gaslighting from your abuser if you are a victim of sexual harassment. It is important to be able to accept and accept what happened. This will help you heal from the abuse.

• Talk to someone: Talking to a friend, family member or therapist can help you get over sexual harassment in the workplace.

• Journal If you find solace in writing down your thoughts and feelings about abuse, journaling is a great way to do that.

What should I look for in a sexual harassment attorney?

Many sexual harassment cases involve sensitive information. You should choose an attorney who will be your partner in the litigation process. Los Angeles' sexual harassment lawyer will need to have access to your case details. You will need to find trusted counsel who will protect your rights. Other characteristics you should look for in a lawyer for sexual harassment are:

• A winning legal team
• Honesty is a key value in a law firm
• A law firm that treats clients as family and not just another case.
• An excellent law firm with great client testimonials and outstanding results

Why Blackstone Law in a Sexual Harassment Case

We as lawyers strive to protect the rights of individuals, as guaranteed under the law. With a focus on your legal rights, we adhere to the letter and spirit of the law. Our goal is to provide exceptional representation, clarity, and compassion.

Each case of sexual harassment is different, so every sexual harassment law has a unique case management style. We cannot guarantee a quick solution, but we will keep in touch with you as the case develops. For any questions you may have, you can reach out to your lawyer immediately.

Contact a California Workplace Sexual Harassment Attorney

To determine if a work experience is sexual harassment, you should consult an experienced workplace harassment attorney. If the situation is considered harassment, we can help you develop a plan to deal with it from a legal standpoint. We will discuss your options for pursuing legal action to help you seek justice.

Sexual harassment at work can take many forms and may include many scenarios. A colleague, supervisor, or customer could sexually harass an employee. Sexual harassment can include inappropriate comments, jokes, inappropriate or unwanted touching, and someone promising you a job promotion or job perk in return for sexual favors. Today, workplace sexual harassment is more well-known than ever thanks to social movements like #MeToo.

Our Los Angeles sexual harassment lawyers can help you understand your legal rights and options if you're being sexually harassed at work. Contact our firm today at (818) 408-6708

What is Sexual Harassment in California?

It doesn't have to be sexual harassment. This could include teasing, intimidation, and offensive comments that are based on stereotypical views about how certain people should behave. Bullying someone or a group could also be involved based on sexual orientation, gender identity, and sex. Unwelcome sexual advances, requests for sexual favors, and any other verbal, physical, or sexual conduct are all examples of sexual harassment.

There are two types of sexual harassment:

• Quid pro-quo This is a form of sexual harassment in which it is implied or stated that an employee's employment decision will be based on their willingness to engage in sexual conduct. Quid pro quo is also a form of sexual harassment in which an employee is required to perform sexual acts to keep their job. If an employee believes that promotion is possible if he/she goes on a date or consents to perform a sexual act, it is most likely that the employee is being subject to quid pro quo sexual harassment. Quid pro quo is a term that refers to "this for that".
• Harassment in the workplace is when inappropriate conduct of a sexual nature creates a hostile work environment. This happens when it becomes so severe, persistent, and pervasive that it impairs employees' ability to perform their job duties effectively. An individual of authority does not have to harass an employee. Sometimes the harasser might be a peer.

What Acts Are Considered Sexual Harassment

These are the most common situations in which workplace sexual harassment takes place:

• Sexual comments: These are comments or jokes about one’s physical attributes, spreading gossip about another person's sexual activities, discussing one's sexual behavior in front of others, and displaying or disseminating pornography. These comments can be made in person, via email, instant messaging, or blogs, on social media, and other channels such as Twitter, Facebook, Google+, and Instagram.
• Unwanted advances: When someone sends you letters, makes harassing phone calls, visits your office, and presses you for dates or sexual favors. These situations are where there is a clear sexual or romantic intention but they remain unwelcome.
• Inappropriate Touch: Unwanted touching includes touching others sexually, such as touching, hugging, kissing, or fondling. This includes sexual assault and rape as well as other criminal acts. Remember that you must immediately report any incident of criminal nature to law enforcement.
• Sexist comments It is common to believe that harassment must be sexual to be illegal. Title VII makes it illegal to engage in offensive behavior that is based upon an employee's sexual conduct. A hostile workplace could be caused by supervisors who constantly stereotype women and tell them to wear certain clothing or exclude them from important meetings due to their gender.
• Harassment of others: It is illegal for a manager to harass another employee. Federal law also imposes a duty on employers to protect their employees from harassment by outsiders. These could be clients, vendors, or business partners. Employers must take prompt action to end harassment if they know or should have known.

It is important to remember that harasser and harasser can be of any gender. Sexual harassment is traditionally associated with a man harassing a woman. This is still a common scenario, but there have been many instances where men harass women at work. It is illegal to harass a woman against her husband or partner of the same sex.

How can I legally protect myself from sexual harassment?

These are some steps you can immediately take to protect your legal rights and yourself:

• Document everything. It's a good idea to keep a log of all incidents. It will be much easier to point out specific dates and details about particular behaviors when you report or take action. For example, if your supervisor sends you an instant message or email that is harassing, keep it. Document any harassing comments made during a meeting. Include the date and the time. All this information should be kept at home, or somewhere else than your office so that you can access it when you need it.
• Be clear. Tell the harasser that you are not pleased with their behavior. If you feel comfortable, you should voice your dissatisfaction. You might say that the conversation or comment is not appropriate at work, or that you are uncomfortable with the behavior of the other person.
• Contact an employment lawyer. An experienced Los Angeles employment lawyer who has handled cases involving workplace sexual harassment would be in your best interests. You should look for lawyers who represent workers, not employers.

How can I report sexual harassment?

You have many options to report workplace sexual harassment. The nature and severity of the harassment will determine which option you choose.

Reporting sexual harassment can be done through the following:

• Law enforcement Report the incident immediately to the police if you believe the harassment was serious or criminal. You should report any sexual assaults or rapes that occurred at work, on business trips, or off-site to the police. For your records, file a police report. A copy of the police reports can be obtained by your employment lawyer.
• Your employer Most companies have clear policies regarding sexual harassment. You may need to review your employee handbook and any other policies you received at the time you joined. You may also find such information in your employee portal. You might be required to report the matter to your supervisor according to company policy. If your supervisor harasses you (which is often true), you might want to file a complaint with him or her or the Human Relations department.
• Union - If you are a member of a union, you can speak with a representative to discuss sexual harassment at work. Your union representative may be able to serve as a liaison between your employer and you. Remember that if your harasser is a member of a union, it is their job to advocate for them. You may wish to speak with an employment lawyer in such cases.
• EEOC Claim You can also file a complaint with the Equal Employment Opportunity Commission or with a local or state agency. This step is required before you can file a federal sexual harassment lawsuit. Your attorney can provide information about the filing deadlines for each agency. After you have filed a charge, the agency will investigate to determine if harassment occurred. The agency will not give notice of the right to sue an employee if they find no cause. You can then file a lawsuit against the agency for sexual harassment. The agency might attempt to resolve the matter directly with the employer, or they may give you the right to sue to allow you to proceed with your lawsuit.
• Lawsuit You have 90 days from the date you receive your right-to-sue notice to file a workplace harassment lawsuit. This should be discussed with your employment lawyer. Although most sexual harassment lawsuits settle out of court in the majority of cases, it is best to have a Los Angeles lawyer on your side. He or she should also have the trial experience to be able to present the case to a jury.

What Compensation Will I Get in a Sexual Harassment Lawsuit

You may be eligible for monetary compensation if you have been the victim of workplace sexual harassment. Your level of sexual harassment and the amount you are entitled to financial compensation will determine the amount you receive.

The most common damages in workplace sexual harassment cases include:

• Back pay If you are fired or denied promotion due to sexual harassment, you could be eligible for back pay. This includes wages, benefits (healthcare, vision, retirement, etc.), and any other compensation you would have earned between the date of your negative employment decision and the settlement or jury award. Back pay can include wages, bonuses, tips, vacations, sick pay, and other benefits.
• Front-pay: You have the right to reinstate your position if you were fired or forced to quit due to a hostile workplace. You may be eligible for compensation for wage losses that you will likely suffer after a settlement or jury award.
• Compensation damages: You could be eligible for damages for pain and suffering, or any emotional or physical injuries that you suffered as a result of sexual harassment. You may also be eligible to receive compensation for damage to your reputation, out-of-pocket expenses for expenses like psychological counseling, medical expenses, and costs incurred in a job hunt.
• Punitive damages - In certain cases, the court can award punitive damages to punish an employer for particularly egregious and outrageous behavior. For example, punitive damages could be awarded if the employer knew about the harassment but didn't take steps to remedy it or made the situation worse.
• Attorneys' fees: You may be eligible for attorneys' fees and court costs if your sexual harassment case is successful.

Testimonials

These are just a handful of the many satisfied clients who have praised our excellent results, friendly service, aggressive representation, expert knowledge, and outstanding results. Our Los Angeles Sexual Harassment Lawyers are committed to providing the highest quality service and achieving top results. Check out our online reviews on sites such as Google to see more positive feedback.

Victor Sanchez

Reliable and communicative law firm. They put my interests first, which is not what you might expect from a law firm. Unmatched transparency is what I get when I call to ask questions.

When it's time to talk to an employment attorney

Employers and employees can work together with an Orange County employment lawyer to solve any problem. This could include issues such as wage safety and discrimination, or termination. When is it appropriate to reach for help?

Employers and employees can work together to solve problems by hiring an employment attorney. An employment attorney can help you explain your rights and duties to both the employer and employee if there is a dispute about wages, workplace safety, or wrongful termination.

What is an Employment Attorney?

Two types of Orange County employment attorneys exist. The first focuses exclusively on plaintiffs and employees, sometimes referred to as employment discrimination attorneys, employment rights attorneys, or fees federal employment lawyers. The other focuses only on defendants or employers, also known as management attorneys.

An Orange County labor lawyer should focus on one side, but some will work with clients from both sides.

What does an Employment Attorney do?

An employment lawyer deals with all aspects of employment. This could include discrimination and wage and hour issues as well as safety issues under the Occupational Safety and Health Act.

Levitt explains that an employment lawyer can help employees determine if their rights are being violated and whether it is worth taking further action. The attorney will ensure that the employee exhausts all internal remedies. For example, the attorney can help them follow protocols to report harassment or discrimination. The attorney can assist the employee in navigating the Fair Labor Standards Act (FLSA). This will determine if there is a possibility that rights may have been violated.

Employers can easily violate a multitude of labor laws unknowingly or willfully. Because there are different thresholds for employee counts and tenure, it is helpful to seek guidance from an attorney.

What is the best time to seek advice?

Levitt states that employees should seek advice as soon as they believe something is wrong, and no solution is available from their employer. The employee doesn't have to seek out legal counsel immediately. If the employee believes they have been discriminated against, they can directly contact the federal Equal Employment Opportunity Commission or the state equivalent.

Levitt states, "If an employee works for a small business and the principal of that company is involved, then I would recommend the employee seek advice. The next step would be to file an administrative complaint with either the federal or state governments." This would be the first step beyond the company. The agency then investigates to determine if there is enough evidence to prove a violation and aids the employee in drafting a claim or charge.

Even if there is insufficient evidence, an employee can still file a lawsuit. The agency can either assist the employee or advise them to find an attorney. An employee should seek advice from an employment lawyer to learn about their rights and determine if they are eligible to file a lawsuit. Levitt explained that agency findings aren't binding and often not admissible because agencies don't conduct exhaustive investigations. Levitt says that the agency will visit some people to see them, but there are no depositions and no cross-examination. Even if an employee has a lawyer to assist them, the investigators of the agency conduct [the investigation] without the lawyer being involved.

The US Department of Justice may decide to accept a case. However, they only take very few cases. They will not take cases unless they seek to establish a national precedent or if a large company is involved with rampant discrimination or another equally serious matter.

Levitt points out that plaintiffs have won lawsuits even if the EEOC did not find merit. However, employers have also prevailed when it finds merit and the employee sues.

What can employees do to protect themselves?

Employees who feel they are being discriminated against or not being paid properly should keep detailed records, including dates and times. Notify witnesses. If the employee decides to take legal action, all of this information can be useful for the attorney or agency.

What can employers do?

Levitt warns that even small businesses should have an employment office. It should include policies and rules that ensure equal opportunities in employment. Employees should be able to file complaints with the company and make grievances about discrimination. Every employer must then investigate and decide if there was any illegal conduct.

What about freelancers?

Independent contractors are freelancers In effect, they are their businesses. They do not have the same rights as employees and are therefore not entitled to any benefits. Except for New York and California, which offer some protections to independent contractors, freelancers only have the rights provided by the agreements they make with companies. A freelancer is not an employee of a company.

If you are looking for an employment lawyer, do your research. A nationwide bar service rates lawyers and law firms (peer-rated, but not bought) is useful. You should also verify with your state's Bar Association to make sure they have not been involved in any disciplinary cases.

You may feel overwhelmed if your job has been unfairly terminated or you're being discriminated against or harassed at work.

You are probably concerned about the cost of hiring an Orange County employment lawyer with the right experience and resources.

You need to be aware of what to expect when you begin the process of hiring an employment lawyer.

EMPLOYMENT LAWYERS - THE BASICS

Employers and employees often have disputes over employment-related issues like workplace discrimination, harassment, wage and hours issues, workplace safety and health, as well as family and medical leave issues.

Orange County employment lawyers can help you if you find yourself in this position. They will review your case against your employer, give you advice on the next steps, and ca learn the course of action. Most cases can be settled without going to court.

Sometimes, however, they might end up in front of a jury.

An experienced lawyer must be able to negotiate effectively and is ready to go to trial to challenge existing employment law.

An employment lawyer may not be necessary for all Orange County employment matters.

California employment law can be complex. It requires a lot of legal knowledge, especially if there are carrots at stake.

Employment laws are constantly changing. An experienced employment lawyer will be able to advise you about any changes that could affect your case.

HOW DOES AN EMPLOYMENT LAWYER ASSIST YOU?

These are some ways an employment lawyer can assist you in a workplace dispute case:

Understanding and Clarity

An experienced employment lawyer can help you understand complex employment laws and clarify the situation.

Understanding which employment laws apply in your situation could prove difficult because both federal and state employment laws govern Orange County employers and employees.

Expert employment lawyers are available to provide guidance and accurate information to assist you in making the right decisions.

Information about the Claim Process

A skilled employment lawyer will also know the steps involved in filing a claim or a lawsuit, and the deadlines to be adhered to.

file a claim with the Equal Employment Opportunity Commission, failing to follow the steps and meatal deadlines could lead to a denial.

One of the most crucial parts of any process is compiling all documents and submitting them by the deadline.

An Orange County employment lawyer you can trust will provide you with the support and guidance you need to weather any emotional storms.

This gives you the best chance of a positive outcome in your case.

Providing an Edge

Employer lawyer services can help you get the edge you need in your case.

Nearly every Orange County employer will have their own ers.

Larger companies may have a whole team of lawyers.

You may have difficulty holding your employer responsible for any illegal acts in the workplace. If you do not have qualified legal representation, they might not even consider your case or lawsuit serious.

Discovery

An employment lawyer can assist you with complicated court proceedings.

This is where lawyers question witnesses under oath before a judge.

Statements made in discovery may, and often will be used during the trial.

This process can often give plaintiffs considerable leverage depending on the facts of each case.

WHAT SHOULD A EMPLOYMENT LAWYER LOOK FOR?

An array of employment law issues is handled by attorneys, including breach of contract, privacy, severance and wage and hour, and other disputes.

It is important to consider the experience of the attorney and/or firm in this area, as well as their knowledge and fees.

An employment lawyer must be aware of all current and proposed federal labor laws.

Good employment lawyers will explain to you their fee structure at the outset so that everyone is on the same page regarding fees, billing, as well as other costs incurred in the course of the country.

A lawyer should give you an estimate of the time it will take to resolve your case.

These are Some Characteristics to Look for When You Hire an Employment Lawyer:

Employment Law Focus

Make sure that the law firm or lawyer you choose focuses on employment law.

A law firm that handles all cases is not what you want.

Employment law is a highly specialized field.

You can be sure that your lawyer is knowledgeable in this area.

Background Check

Most sites, including the California Bar Association, have information about whether an attorney has been disciplined.

An attorney must be a member.

A local attorney is likely to have a better understanding of California's employment laws.

The minimum wage in Orange County or San Francisco, for example, is different than the state minimum wage.

Advocate for Employees

Orange County lawyers should be advocates for workers, not employers or employees.

You can be certain that you are choosing the right lawyer for you. They will fight for your rights and get you the best outcome.

Special Experience

Look for someone with experience in representing cases similar to yours.

If you're considering filing a lawsuit against sexual harassment, it is important to find an employment lawyer who has successfully represented clients in similar cases.

Find a Orange County attorney with the right experience and expertise to represent your case.

Orange County employment lawyers are focused on employment law and have helped clients recover hundreds of millions of dollars. Kingsley and Kingsley are the choice of Orange County employees for employment law representation. They commit to helping clients financially and emotionally.

WHAT FEES DO ATTORNEYS EXPECT?

How much you pay for legal services can be affected by the arrangement you make.

The factors that affect attorney fees include the time taken to resolve your case, the ability of the lawyer to handle it, their experience and reputation, the challenge faced by the case, the final results achieved, and any actual costs.

Other factors that impact the total cost are overhead expenses such as rent utilities and office equipment.

These are the most common fee arrangements and cost structures used by lawyers:

• Consultation fees For the initial meeting, some attorneys may charge an hourly or fixed fee. The initial meeting will discuss your case details and determine whether or not the lawyer will accept your case. Be sure to find out if you will be charged for the initial meeting, and if so how much.
• Contingency fees The fee for a lawyer is usually a percentage of the amount that was awarded in the case. If you lose your case or don't receive compensation, your lawyer won't be paid a fee. However, you will be responsible for other expenses. While the percentage of your contingency fees may vary, it will usually be one-third. A sliding scale is offered by some lawyers depending on the progress of the case before settlement. A lawyer may also be limited in the number of contingency fees they can receive by the court.
• Flat fees A lawyer might charge a flat fee in certain cases. Although this type of flat fee is not common, it may be required in cases that are simple or routine.
• Hourly rate In these cases, the lawyer will charge by the hour or a portion of an hour that he/she spends on your case. This is the most common fee arrangement for lawyers. Depending on the type of work performed, some lawyers may charge different fees. Lawyers who work for large companies might also have different fee structures. As an example, senior or more experienced lawyers might charge higher fees than younger or paralegal lawyers.
• Referral fees A lawyer that refers you to another lawyer might take a percentage of the total fees. However, the total fee should be reasonable and you would need to agree to it.
• Retainer fees In such cases, the lawyer is paid a fixed fee. A retainer acts as a down payment that may be charged for future expenses. The retainer is usually placed in a special account, and the cost for services is taken from that account. These fees cannot be refunded.

Ask a lawyer to explain the costs and other expenses that are included in the fees.

Is it inclusive of overhead costs or other expenses? If so, will these be separately charged to you? What will be the cost for staff members, paralegals, and other employees?

Be sure to ask if contingency fees are charged by the law firm.

HOW DO YOU PROTECT YOUR RESPECTIVE RIGHTS?

There are steps you can take to protect your rights if you're facing harassment, discrimination, or a retaliatory workplace.

Keep Calm and Collected

Do not say anything to your employer about you that could be used against you in court. In these situations, it is important to keep calm and gather as much information as you can that may help strengthen your case. Do not speak up or be confrontational. This could backfire on you.

Report the Incidents Promptly

You must immediately report any hostile work environment to your supervisor or human resource department if you feel you are being discriminated against. You must file a written complaint and keep copies of any documents you submit.

Keep a Record of All Incidents

They can be internal memos or emails. Save them. This will help you determine the frequency with which harassment and discrimination took place. It is also a good idea if you have contact information for witnesses to the incidents.

Get help from experienced, proven attorneys

Most likely, your employer has an attorney or a team of attorneys to represent their best interests. If you allow them to, they will use every opportunity possible to devalue your case and take advantage of you. A strong advocate is necessary to protect your rights and look out for your best interests.

How to Qualify For Tax Forgiveness

Tax forgiveness credits are available to low-income taxpayers through the Tax Forgiveness Program. This program allows them to reduce or eliminate their tax liabilities. Tax forgiveness is granted to taxpayers who complete the tax forgiveness schedule. They also need to file a PA-40 tax return. Tax forgiveness levels are determined by the income of the taxpayer as well as the dependents that the taxpayer is allowed to claim.

A dependent is a child that can be claimed as a dependent for federal income tax purposes. A single taxpayer would be eligible for 100% tax forgiveness if they had an eligibility income of $6,000. A married couple would be eligible for 100% tax forgiveness if their eligibility income was $13,000. 100 percent tax forgiveness would be available to a married couple with two children, and an eligible income of $32,000.

Taxpayers must complete a PA Schedule SP, as eligibility income is not the same as taxable income. For every $250 of income, the level of tax forgiveness drops by 10%.

For tax forgiveness eligibility, married taxpayers must use their joint income, even if filing separately.

There are many ways you could get in trouble with your taxes. These relate directly to how the IRS determines what level of forgiveness you should receive. These are the most common tax pitfalls.

• Income on tax forms that are overstated or understated
• Inadequately taking all deductions into consideration
• Bracket creep
• Unexpected income increases without taking steps to reduce tax liability
• Inadequate reporting of income from the side or contractual jobs
• Failure to report earnings from investments

These tax pitfalls have a common theme: you made more than you paid taxes on. The IRS will generally not forgive you for owing them money unless you ask forgiveness.

Most common tax pitfalls and problems

Tax forgiveness doesn't mean that your IRS will eliminate your debt. It's about you disclosing accounting errors and proving extenuating circumstances and then negotiating a settlement. Can a back tax amount ever be forgiven? Many factors can affect the answer.

Ideal Tax Solution's tax professionals often get asked this question by our clients. It's not an easy question to answer. This is why we decided to create this comprehensive guide to tax forgiveness. There are many ways to get in trouble with the IRS. The IRS will determine the amount of tax forgiveness you are eligible for.

Common tax pitfalls and problems.

1. Failure to file on time

According to the IRS, 20% of taxpayers delay filing their income tax returns until one week before the deadline. If they have any issues while filling out their forms, procrastinators may be forced to miss the deadline by waiting too long.

Although you will have more time to file for an extension, you still must pay the taxes due by the original deadline of April 15, 2020, for the tax year 2019.

The IRS may charge interest if you fail to make your payments on time.

2. Incorrect or missing information

The most common mistakes in tax filing are leaving a blank box or fat-fingering Social Security numbers.

Importing last year's returns is the best way to avoid making these mistakes.

3. Math errors

Tax forms can be confusing. Add lines 8 to 32, multiply by.356, if your AGI exceeds $50,000.

Use tax preparation software to save yourself the headache. Ideal Tax is easy to use. All you need to do is answer some simple questions and the software will fill in the required boxes on your tax return.

4. Not keeping up with the most recent tax news

The tax code is complex and Congress makes changes to it every year. The tax reform that took place at the end of 2017 was the most significant overhaul of the tax code in 30 years. This is a huge amount of change.

For important updates, make sure you visit the IRS news page and subscribe to the Ideal Tax Blog. This will ensure that you don't miss any valuable deductions or credits, or claim a tax benefit no longer available.

5. Do not keep a copy of your return

Tax experts recommend that you keep a copy for at least three consecutive years.

This is how long you can legally be audited by the IRS for gross under-reporting income.

You can view and print your Ideal Tax Return for free for seven years after filing.

6. Inaccurate account numbers

If you need your refund to be deposited directly or you are making an electronic tax payment, you should double-check your routing numbers and bank account.

Incorrect information could delay your refund or lead to penalties and interest for late payments.

7. Tax breaks not taken

Although the IRS isn’t known for being generous, there are many tax credits and exemptions that are available, especially to students and families.

Credits such as the Child Tax Credit could lower your tax bill up to $2,000 so make sure that you are eligible.

Before you decide to take the standard deduction, think twice. Particularly homeowners should list their largest deductions to determine if they are more than the standard amount.

8. The wrong tax forms are being filed

All filers can now complete one income tax form from the IRS, regardless of the tax situation. This is Form 1040. Starting in 2018, Forms 1040A & 1040EZ were removed.

Six new schedules were also introduced with the revision of Form 1040. The changes can be read here.

Schedule C is required if you have a business that needs to report profits or losses.

9. Filing under the incorrect status

The IRS has different income tax rates depending on your filing status.

For example, married couples filing jointly are entitled to double the standard deduction for single filers.

Note that married couples who file separately are subject to different rules from joint filers.

If you file separately, for example, both spouses must claim the itemized or standard deductions, but not one.

This calculator will help you determine which tax bracket you are in and calculate your 2019 tax rate.

10. Do not file at all

Even if your tax bill is not paid in full, you can still file a return with the IRS and start an installment plan.

Interest rates are very low and it is far better than not filing, which could lead to penalties or tax evasion charges.

Income on tax forms that are overstated or understated.

It is important to consider all deductions.

Bracket creep.

Unexpected income increases without taking steps to reduce tax liability

Failure to report income earned from the side or contractual jobs.

Failure to report earnings from investments

Take a closer look at these pitfalls and you will see that there is a common theme: you made more than you paid in taxes. When that happens, the IRS won't usually forgive you for any amount owed to them. You can, however, ask for forgiveness to change the outcome of your tax journey.

Let's have a closer look at forgiveness.

Are you facing a tax bill this year from the IRS? You are not the only one. According to a government study, 21% of tax filers might not have received enough taxes in 2018.

What happens if Uncle Sam owes you money but you don't have the funds to pay it? There are options. There are many tax relief options that the IRS can offer you.

You can reduce your tax liability by using tax relief. Tax relief will not eliminate your tax bill. It may also cost you more over the long term. However, it can make it easier to pay what you owe the federal government.

What is Tax Relief?

It's about setting up a payment schedule or negotiating a settlement. This is not about getting rid of your tax obligations. It's more about helping you to pay off your tax debt.

Special tax relief is sometimes available to victims of natural disasters such as wildfires or hurricanes. Disaster victims may be eligible for extensions of deadlines and may be eligible for casualty losses on federal income tax returns. Learn more about tax relief from the IRS.

Remember throughout the article that tax forgiveness does not mean the IRS going into their computer and pressing a few keys to eliminate your debt. It is about disclosing accounting errors and proving extenuating circumstances to negotiate a settlement for the amount owed.

These are some factors that tax debt forgiveness is dependent on income

Be sure to understand that all income must be disclosed, regardless of whether it is taxable, side work, or contract. This is because the IRS will use all of these numbers to determine your ability and financial resources to pay taxes. If they find that you are unable to pay taxes, they will consider that.

Expenses

This is the second part of how the IRS decides your ability to repay your debt. The IRS uses a set of national standards to determine how much income can be taken out. These national standards include:

Health care

Transport

Items for the home, such as food and clothing.

Other living expenses

Your living expenses are usually calculated according to the local standards. There are exceptions to this rule, however, where you can provide enough documentation.

Outcome

The IRS also determines your income taxes in the same manner. They will review all information about your case. They will consider your income and subtract your expense allowances. Finally, they will assess any mitigating factors that could affect your ability to repay your tax debt. The IRS generally follows a six-year repayment schedule. If your offer of compromise is acceptable, it could be accepted.

Other Eligibility Requirements

You may also be eligible for partial or full forgiveness of tax debt. The best way to get total forgiveness is to show that your allowable expenses exceed your income so that regular tax payments are not a financial hardship. This can be a difficult task.

Tax exemptions, forgiveness, and allowances can be different.

All terms are often used in tax time, including forgiveness, allowances, and exemptions. It's important to know that these terms can all be used to reduce your tax liability. They are not the same thing. You may wonder how forgiveness and exemptions differ from one another. Let's take a moment to discuss this with you.

What are allowances?

You're likely to have seen the box on your W-4 where you need to choose how many allowances to claim if you've ever filed taxes. If you're anything like most people, it's not easy to understand the calculations. You may have heard that more allowances mean less tax.

Allowances are withholdings you claim on your W-4. They can reduce your weekly paycheck, but can also cause headaches when it is time to file your taxes at year's end.

What are exceptions?

Exemptions can be a type of deduction you can claim on your tax returns. You can choose to exempt yourself or your dependents. They are designed to help you balance your taxable income with the amount that you withhold from your paycheck each pay period.

Some people do not claim allowances on their W-4s. This allows the IRS to collect more taxes than they owe in a given year. They will be able to claim more of their exemptions on Form 1040.

What forms do I need to file to apply for tax forgiveness?

It might seem unfair that a debt you have successfully negotiated away or canceled comes back to haunt your taxable income. The IRS considers canceled debt income, even though you did not pay for it.

You don't pay taxes on the money you borrow. However, you must repay the contract. The contract is gone and the money is yours. You received the money as a gift and it is now taxable income.

Form 1099-C

The IRS states that almost any debt you have, whether it is forgiven, canceled, or dismissed, becomes taxable income. The lender who forgives the debt will send you a Form 1099C, "Cancellation of Debt." A Form 1099-C is typically issued by a lender that forgives the debt. It can be used to cancel a loan, modify a loan, repossession, foreclosure, return the property to a lender, or abandon, or modification of your principal residence.

It can be difficult to know which forms to complete and submit to the IRS to receive tax debt forgiveness. You probably don't understand the purpose of all the numbers and letters that are flying around.

We have listed a few essential forms that you should know, especially if your goal is to get tax debt forgiveness.

Form 1040

Your primary tax form is the 1040 form. All of the numbers on the 1040 form are directly from the Form W-2 you receive from work. Each line is marked with a number and instructions for calculation. You should be cautious with this form as you could have serious tax problems if you under- or overreport your income.

W-4

When you start a new job, Form W-4 must be completed. This form is essential because you can claim allowances that could increase your salary. You should make sure you don't get more tax exemptions than allowances. Otherwise, you might end up owing more.

Form 656 Booklet

To apply for an Offer in Compromise, you will need to complete the Form 656 Booklet. The booklet contains all the information needed to complete the application. Before you submit Form 656, you should have a tax professional like the ones at Ideal Tax Solution review it. The application is extremely detailed and you will need all documentation to support any claims made in it. For individuals, the booklet contains Form 433 A, Form 433 B, and Form 656, which are the Offer in Compromise applications.

Although it is not a pleasant experience to be liable to the IRS for late taxes, you don't have to worry. Many forgiveness and assistance programs can help you get rid of the tax debt you have. You should understand that you don't want to avoid the IRS as they can garnish your wages and withhold future tax refunds.

Are you ready for the IRS to forgive you?

You may be wondering if IRS debt forgiveness even exists. It sounds too good to be true, doesn’t it? The short answer is that you can get IRS tax debt forgiveness regardless of how much or how long you owe in delinquent taxes.

How Can I Get My Taxes Forgiven?

It can seem impossible to see the light at the end when you are trying to get out of a mountain of back taxes. The truth is that there is help available, and it is coming from the IRS. Many people who are dealing with tax debt and the consequences it has on their lives believe they won't get the help they need. The IRS will work with you regardless of how old your tax debt may be.

There are many misconceptions about tax forgiveness and how to apply it. Some programs can be used in cases where you are not eligible, such as the innocent spouse provisions. The IRS fresh start program allows for tax forgiveness credits to be applied to your earned income to reduce the amount you owe each year. In some cases, you may even be able to reduce your owing amount to zero.

To determine which forgiveness plan is right for you, we will consider your financial situation. These are the steps to an IRS debt forgiveness program:

Acceptance to the right program after applying

Consent to keep current with all tax returns going ahead

Accepting all terms and conditions set forth by the IRS regarding totals due, penalty abatement, and payment terms

Accepting that the IRS periodically reassesses your financial situation

Payment plan or a lump-sum payment to pay off full or amended debts

Based on your financial situation, and your tax debt, the IRS will calculate how much you must pay. The first step in determining if you are eligible is to apply.

Who is eligible for IRS tax debt forgiveness?

What Do I Need to Qualify for IRS Tax Debt Forgiveness?

Without consulting a tax professional, it can be hard to determine if you are eligible for debt forgiveness. If you haven't paid your entire tax bill because of financial hardship, the IRS may be willing to agree with you. These are the key factors that the IRS considers:

Tax balances below $50,000

A single filer income cap of $100,000

For married couples filing jointly, there is an income limit of $200,000

Self-employed people will see a 25 percent drop in their net income

Nearly all applicants will be approved for an IRS repayment agreement. Repayment may not be the best choice for you. An Offer in Compromise, or currently non collectible status may allow you to pay less overall. Both of these options will require you to provide financial information to IRS. You don't want to present any information that could contradict your claim that your tax bill is unpayable.

What Is Tax Forgiveness?

The 1974 Pennsylvania General Assembly decided that some citizens of the Commonwealth needed special tax provisions because they were poor. The General Assembly decided that imposing a personal income tax on these individuals would make it impossible for them and their families to live comfortably. Because poverty is a relative concept that considers actual income as well as the dependents of such income, the General Assembly made special tax provisions to help eligible people ease their economic burden.

Tax forgiveness is a credit that allows taxpayers who are eligible to lower their Pennsylvania personal income tax liability. Tax forgiveness:

• Reduces tax liability
• Some taxpayers are forgiven of their liabilities, even if they haven't paid their Pennsylvania personal income taxes.

If you are reading this article, you will find out if your IRS can forgive your taxes. We have both good news and bad news.

There is no one tax debt forgiveness program. The good news is that there are many IRS forgiveness programs available to help you achieve tax forgiveness. Below we'll discuss several programs in more detail. But first, it's important to remember that tax debt forgiveness doesn't work for everyone. It is important to take the time to find the program that works best for your situation and financial situation.

Ideal Tax Solution's tax experts can help you find the best forgiveness options for your situation and help you resolve your tax problems.

Claimant

Eligible Claimant

A person is eligible to claim:

• Who is subject to the Pennsylvania personal tax on income?
• Except as stated in Part 2 Section C, who is not a dependent for Internal Revenue Code (IRC), SS 151? of the 1986 Internal Revenue Code (IRC),
• The income of a poor person does not exceed certain eligibility levels.
• Who is not eligible for a federal, local, or state prison? A patient in a state or federal hospital or a student in a residential school for half a year or more?

How Does Tax Forgiveness Work?

Credits against back taxes are the best way to get tax forgiveness. These credits can help reduce your tax liability. You must ensure that the IRS considers your taxable income and non-taxable income as well as your financial situation and family size.

It's important to understand the process of tax forgiveness as we go along this article. It's not about forgiving your late taxes. They disappear in smoke and are never seen again. Credits against back taxes are a better way to get rid of tax debt. These credits can be used to reduce your tax liability, or even eliminate it. To determine if you are eligible, the IRS considers the amount of your taxable income and non-taxable income. It also considers the size of your family and your financial situation.

What are some of the tax forgiveness programs?

There are many relief options that you have. Your eligibility depends on your circumstances. We'll be discussing a few options for forgiveness and relief in detail in this article.

Installment Agreements

An installment contract is performed over several performances, such as payment, delivery of goods, or performances of service. An installment contract can specify that one or both of the parties must perform each installment. A contract could say that the buyer would pay a lump amount for goods over some time. Or that the seller would deliver the products and then receive payment.

If you are unable to pay the full amount, these agreements allow you to reduce your tax debt by paying it off in smaller amounts. The most common repayment term is 72 months. This option is not available to those who owe more than $50,000 in taxes, interest, and penalties.

Innocent Spouse Relief

The Internal Revenue Service (IRS), which offers relief from joint and multiple liabilities arising out of joint tax returns, has the innocent spouse rule as one of the three types. This rule allows the applicant to be exempted from paying any tax, interest, or penalties due to erroneous information reported by their spouse. Any unreported gross income, incorrect deductions, credit, or property basis claimed or received by the spouse are all considered erroneous. A total relief is available to the applicant if they knew nothing or had any reason to know about the erroneous items, or partial relief if the applicant only knew about a part of the erroneous items.

The IRS explains that an applicant for innocent spouse relief must satisfy three requirements. First, the applicant must have filed a joint tax return in which there is an understatement tax due to erroneous items that were not attributable to their spouse. Second, the applicant must not have known or had any reason to know that the tax was understated at the time they signed it. Third, the applicant cannot be held liable for the spouse's understatement tax given their facts and circumstances.

The spouse and the applicant must not have been involved in fraudulent transfers of property. If the applicant meets these requirements, they must file Form 857 with the IRS within two years of the IRS' first attempt to collect the higher tax. Exceptions may be granted for equitable relief.

This program will allow you to avoid penalties resulting from tax fraud or inaccuracies on your spouse's tax returns. This is a very specialized relief program.

Offer In Compromise

These numbers will be taken into consideration by the IRS and you may be eligible to file an Offer in Compromise. This is the closest the IRS can offer to tax forgiveness, except in very specific situations. It allows you to negotiate with the IRS the amount that you can pay.

This is a settlement program that allows you to pay much less than what you owe the IRS.

Not Collectible

Currently Not Collectible (or "Currently Not Collectible") is a relief program designed to provide a fresh start for taxpayers who can prove they can't pay their tax debt.

It is not an automatic process to qualify for tax debt forgiveness. Just because you meet the requirements does not mean that you will be granted forgiveness.

Reasons the IRS will remove penalties

If certain criteria are met, the IRS can grant a first-time penalty waiver (FTA) waiver to taxpayers who fail to file, fail to pay, or fail-to deposit penalties. This procedure rewards taxpayers who have a clean compliance record. Everyone is entitled to one error.

FTA may be requested by individuals and businesses for failure to file, failure to pay, or failure to deposit penalties. FTA does not apply to any other penalties, such as the accuracy penalty, returns with an event-based filing requirement, Forms 706 and 709, or information reporting that relies on other filings.

How Does Tax Forgiveness Work?

Refer to IRM20.1.1.3.6, Reasonable Cause Assistant (RCA), and IRM20.1.1.3.3.2.1 First Abate (FTA),.

The following criteria are required for taxpayers to be eligible for an FTA waiver:

Compliance: You must have filed all required returns (or extended the deadline for filing them) and you can't have any outstanding requests for returns from the IRS.

Payment compliance - Must have paid all taxes due (can be made in installments if they are current).

Clear penalty history: There have been no previous penalties (other than a possible tax penalty) in the three preceding years.

Please note that IRM 20.1.1.3, Guidelines for Relief from Penalties, penalties relief under administrative Waivers, including FTA, must be taken into consideration and applied before reasonable cause.

Phone to request penalty abatement

If the tax practitioner is not being assigned to a particular compliance unit (examination or collection), he or she may call the IRS Practitioner Priority Service line (PPS) at 866.860.4259 and request FTA. To request FTA, the practitioner should contact the unit that is handling the case. To request penalty abatement over the telephone, a tax practitioner will need to have the power of attorney authorization (Form 2848 - Power of Attorney and Declaration Of Representative). The IRS representative who answers the call should have the ability to pull up the client's accounts, determine whether the FTA criteria are satisfied, and apply for the waiver. A letter would be sent to the taxpayer indicating that penalties have been removed based on FTA criteria. It is recommended that the taxpayer follow up with the IRS if the letter does not arrive within 30 days of the date of the call.

Tip Often, calling the IRS to request FTA is the best way to do so. Many penalties can be quickly removed during a phone call. Sometimes, however, the IRS may not be able to reduce the penalty amount over the telephone. To request FTA, the tax practitioner can write to the IRS. It is also advisable to send a letter to IRS to confirm that the IRS has abated penalties by phone. This letter should include the date, agent's name, and identification number.

Send a letter or mail to request a penalty reduction

A tax practitioner can request FTA for his client by writing to the IRS instead of calling the IRS. All relevant information should be included in the request, including taxpayer name, identification number, and tax year/period. It is important to clearly state that the client meets FTA criteria. Attach transcripts from clients that can prove compliance with filing/payment requirements and a clean history of penalties (Form 2848). All pages sent to IRS must include page numbers, the taxpayer's name, and the last four digits of their identification number.

How To get tax relief?

FTA is only applicable to one tax year/period. FTA does not apply to requests for penalty relief for multiple tax years/periods. If the FTA criteria are met, penalty relief will only be granted for the first tax year/period. All subsequent tax years/periods are subject to penalty relief based on other provisions such as reasonable cause criteria.

If the IRS has not assessed the penalty, then a client may file a late return and fail-to-file or failure-to-pay penalties will apply. The taxpayer can attach a penalty request nonassertion to the late-filed returns.

To request a refund, a client who has already paid the penalty may file Form 843 (Claim for Refund or Request for Abatement) to request a refund.

Consider appealing to the Appeals if the IRS refuses to grant penalty relief. The appeals may reach a different conclusion based on other factors such as the risks of litigation.

Although each case is unique, the CPA (client advocate), cannot request abatement for the client. With a simple telephone call or letter to IRS, clients can save thousands on penalties and rely on their tax professional for assistance.

The IRS will owe any amount. What makes it worse is that they can add penalties to the amount due. The IRS will slap you on the wrist for not paying the full amount due. They want to encourage you to use the "stick" approach rather than the "carrot".

Would you believe that your tax penalties could be wiped out? An IRS tax abatement can be applied for. It is not easy, so I cannot guarantee it will work. However, it is worth the effort. Some of my clients have experienced great success, so why not try it?

To be eligible for penalty abatement, the IRS has strict guidelines that taxpayers must follow. Many reasons could be considered for penalty abatement. These include honest mistakes, serious illness, and undue hardship. You should have documentation to support your claim.

Continue reading to find out more about the types of situations that the IRS will accept for a penalty reduction and to see if you fall within any of these categories. I can help you determine if you have a case.

WHY DOES THE IRS ADD PENALTIES TO PERSONS?

As we have already stated, the purpose (or imposing) a penalty was to encourage voluntary compliance. "Voluntary compliance is when taxpayers comply with the law without compulsion, threat or retribution" (IRS.gov "20.1.1.2.1 Encouraging voluntary Compliance," 8/14/2013). When a taxpayer makes good faith efforts to comply with all tax obligations ("Encouraging Voluntary Compliance"), he or she supports the principles of the Internal Revenue Code.

In this situation, the taxpayer is considered compliant if they reply to tax rules written material and complete all forms related to their tax liability. The IRS administers a system that penalizes taxpayers for not complying with tax rules ("Encouraging Voluntary Compliance") to encourage compliance. To encourage compliance in the future, the IRS educates taxpayers.

REASONABLE CAUSE

The IRS will waive or abate any applicable penalty if a taxpayer explains. "Part 20" states that if the explanation applies to any (or all) of the penalties but not all penalties, the IRS waives or abates the relevant penalty.

After the assessment of the penalty has been made, relief may be granted. The appropriate penalty portion is then reduced. There are specific guidelines for adjustments made due to reasonable cause.

Section 20.1.1.3.2 defines reasonable reason in the context of a taxpayer not complying with their tax obligations. The taxpayer is granted relief if the taxpayer "exercised normal business care and prudence when determining their tax obligations." (IRS.gov "20.1.1.3.2 Reasonable Cause," 8/14/2013).

These circumstances are known as "Reasonable Cause", and relief is often granted. The penalty sections of the Internal Revenue Code define reasonable cause as evidence that the taxpayer "acted in good faith" or that the taxpayer's failure to comply with the law was not due to negligence ("Reasonable Cause”).

A taxpayer can have reasonable cause if they have shown that their conduct is justifiable for non-assertion of or abatement. Each case is judged separately; the judgments are made based on the presented evidence, facts, and circumstances.

The specific criterion used by the IRS to determine taxpayers' guilt is used when evaluating the merits. The IRS may ask a question about the taxpayer's attempts to comply with the law after all facts have changed.

This question is one of five that the IRS uses to assess the taxpayer's decision-making ability to determine if "circumstances prohibited the taxpayer from filing a return, paying tax, or otherwise complying with the law" ("Reasonable cause").

The Internal Revenue Manual describes how reasonable cause and other relief provisions can be applied in the context of tax administration. These provisions must be used consistently and should comply with the IRC, Treasury Regulations(Treas) requirements. Regs. Regs.

Not all penalties are eligible for reasonable cause relief. A reasonable cause provision might only apply to a particular section of the Internal Revenue Code. Acceptable explanations do not have to be limited to the sections of the Internal Revenue Manual.

Penalty relief is usually considered when the facts and circumstances reveal that the taxpayer exercised ordinary commercial care and prudence, even though it was not possible to comply within a specified time frame. Once the facts and circumstances show that the taxpayer willfully failed to comply with tax obligations, reasonable cause ceases ("Reasonable Cause")

TAX Penalty ABATEMENTS-REASONABLE CAUSE FACTORS

Many of my clients get upset and take it personally when they are assessed a tax penalty by the IRS.

A balance owing to the IRS can be significantly increased by tax penalties. This is in addition to interest. It can make a small amount seem much bigger. The IRS uses a strict approach to tax penalties. They will often assess penalties without considering the underlying circumstances.

A list of reasons

For some taxpayers, the IRS may be able to reduce their tax penalty.

It is difficult to accept tax penalty abatements as the IRS doesn't like to release them without a justifiable reason. The Internal Revenue Manual has a list of "reasonable causes" that taxpayers can use to challenge their tax penalty.

The IRS defines a tax penalty exemption as a taxpayer who exercises ordinary care and prudential but fails to follow their obligations. [1] I have provided a list of reasonable causes exceptions to tax penalties for the benefit of my readers.

This is not a complete list of circumstances that a taxpayer could use to receive a tax penalty reduction. These are the situations that I believe the IRS will accept, based on the Internal Revenue Manual.

Any reason or justification other than these factors will prove more difficult for the IRS to justify the reasonable cause.

Tax penalty abatement element 1 - Ordinary business management and prudence. (IRM 20.1.1.3.2.2)

It is possible to show ordinary business care and prudence by proving that the taxpayer tried their best to comply with their tax obligations but due to circumstances beyond their control were not able to.

When determining whether to reduce a tax penalty due to reasonable cause, the IRS usually considers four factors.

First, the taxpayer must have compelling reasons to seek the penalty abatement. All explanations must be compatible with the dates and circumstances upon which the penalties were based.

The IRS also looks at the taxpayer's compliance history. While it is not likely that taxpayers who have had past issues with compliance will be denied tax penalty relief; however, bad behavior can sometimes impact the taxpayer's financial situation.

Third, the time it took for the taxpayer's compliance must be reasonable given the circumstances

The circumstances that lead to tax penalty abatement must not be within the control of the taxpayer.

The IRS will carefully examine all these factors and may request supporting documentation from taxpayers to verify the sequence of events claimed.

Tax penalty abatement element 2 - Death or serious illness or unavoidable absence (IRM 20.1.1.3.2.2.1).

A tax penalty reduction from the IRS is possible if there are any death, serious illness, or other serious medical condition. This applies to both individual taxpayers and their families, as well as corporate taxpayers if the sole person responsible for tax compliance is absent.

The IRS will look into the steps taken by a corporation to comply with the condition. While it's not easy to share personal information with the government, it's important to document the circumstances that led to the non-compliance.

This includes details and dates related to:

The severity of the condition

Relationship between the taxpayer and the person with the condition (if it is not the taxpayer).

Additional information that may be of use to the IRS in determining your case

Remember that eventually, a human being will review the facts and circumstances surrounding the tax penalty abatement.

It is perfectly acceptable to ask for sympathy from the IRS when you request tax penalty abatement.

Bottom of Form

Tax penalty abatement element 3 - Ignorance law (IRM 20.1.1.3.2.2.6).[1]

This factor can be used as a reasonable cause argument but it is harder to use. However, ignorance of the law may still be a factor the IRS might consider when determining whether a tax penalty abatement is valid.

Some taxpayers may not know that they must file and pay certain tax obligations due to their past or education. If the taxpayer can comply with the law, they are not subject to penalization for ignorance.

The IRS will consider the educational history of the taxpayer, whether they have been subject to this tax before, and whether they have ever been penalized (the kiss of death to this argument). If there have been recent changes to the law, any reporting requirements, or forms that the taxpayer wouldn't reasonably expect to know about, they will also look at the taxpayer's past education.

The IRS believes that ignorance of the law is not a good thing. They believe that any taxpayer who fails to make a reasonable effort should understand the law. If you want to reduce your tax penalty, it is better to rely on other factors than just this one.

However, ignorance of the law is not necessarily a weakness. You can combine it with other factors to help you position.

Tax penalty abatement element 4 - Forgetfulness and mistakes (IRM20.1.1.3.2.2.7).[2]

Forgetfulness

My professional opinion is that you should not attempt to abate a tax penalty based on forgetfulness. It's better to not mention this in your argument for a penalty reduction than to the IRS.

The IRS does not consider forgetfulness a sign that you did not exercise reasonable care and prudence to comply with your tax obligations. In the IRM, the IRS states that relying on someone else to fulfill your obligations or provide oversight for you is not sufficient to establish reasonable cause.

Mistakes

While mistakes are less likely to be deemed suspicious, the IRS quickly points out that making a mistake does not indicate that you have been exercising ordinary care. These factors are not so important. Instead, you should forget about them and pursue other avenues to argue for your tax penalty reduction.

Tax penalty abatement factor 5. - Unable records to be obtained (IRM 20.1.1.3.2.2.3).[3]

This is a double-edged weapon, but I have personally seen several tax penalty abatements that were accepted because the taxpayer couldn't obtain the records necessary to comply with their tax obligations.

It is essentially about:

1. How reasonable was it that the records were not available?
2. The taxpayer had control over the records.

The IRS sees filing incorrect information as worse than not filing.

It is a sign of diligence that the taxpayer waits until they have all the information necessary to file a complete and accurate tax return. Your argument will depend on how long it took you to discover the records and the efforts you made in rectifying the problem.

This argument can be used to abate tax penalties, but it is dependent on the facts.

Tax penalty abatement element 6 - Undue hardship IRM 20.1.1.3.3.3)

The IRS can also use undue hardship to reduce a tax penalty. Undue hardship is defined by the IRS as " more than an inconvenience for the taxpayer." [1]"

This means that the taxpayer must document and show serious financial or personal hardship to reduce tax penalties as a result. This is not an easy feat, even for a professional.

The IRS will not consider any circumstances severe enough to prevent payment of taxes in very few cases.

1. Personal health is at grave risk (cannot pay for medical bills).
2. Loss of your primary residence (cannot afford rent) or to the detriment of minor children or dependents. (Cannot pay their food or housing costs).

The IRS will not consider any other factors in determining if you have an undue hardship.

Another important point to remember is that in cases where items are tied to failure to pay, undue hardship generally qualifies as an appropriate justification. The IRS does not generally excuse penalties for taxpayers who fail to file due to undue hardship. [2]

According to the IRS financial hardships generally don't affect taxpayers' ability to file. However, I have personally been successful in releasing any penalties that may be associated with failure to file due to economic hardship.

What is most important to me is the context of the taxpayer's request. No matter what penalties are being applied, good facts will prevail over most IRS objections.

Tax penalty abatement element 7 - Bad advice IRM 20.1.1.3.3.4 and errors made by IRS IRM 20.1.1.3.4

Although I won't say bad advice is the best way to get penalties reduced, bad advice from the IRS or tax practitioners is one of the most persuasive reasons to reduce tax penalties.

Tax practitioners often use this tactic to reduce penalties in other areas such as audits. The IRS will look for ordinary care and prudence when granting tax penalty abatement.

Logically speaking, if you believe the IRS, they should be held responsible for any penalties.

Relying on a tax adviser is, however, an indication that you have admitted ignorance about certain tax issues and are putting your faith in someone who has been trained in these matters.

Relying on a tax adviser is only reasonable if the taxpayer is negligent (negligence). The IRS can also prove financial sophistication, which would indicate that the taxpayer should not have trusted them.

This tactic is generally a good one to use, given the facts. In most cases, the IRS will correct any mistakes they make without too much resistance from the taxpayer.