In this episode of The Tax Resolution Playbook, host Doug Sandler talks to Peter Marchiano, a CPA and Tax Resolution Specialist. They dive deep into the daunting world of IRS penalties. Pete understands that receiving a letter from the IRS can strike fear into the hearts of many, but he's here to provide guidance and expertise to help navigate these challenging situations.

In this episode, Doug Sandler and Peter Marchiano discuss:

• Ignoring IRS Notices
• Not Filing a Return Because You Can't Pay
• Going it Alone Without Understanding Options
• Giving Incomplete or Inaccurate Information
• Waiting Until It's An Emergency

Key Takeaways:

• Ignoring IRS notices—especially leaving them unopened—causes you to lose valuable rights that are tied to strict deadlines, like the 30-day window before levies or garnishments.
• Filing your tax returns is more critical than being able to pay the bill in full because non-filing penalties are roughly ten times harsher than non-payment penalties, and you can’t access payment options or relief programs if the returns don’t exist.
• Do not go it alone, as a representative who understands IRS rules, rights, and procedures can push back, propose alternatives, and escalate to appeals when necessary.
• The IRS will negotiate based on allowable living expenses and genuine “health and welfare” needs, but not on wants or discretionary spending, meaning that documenting things like necessary transportation, medical diets, or care for dependents (even pets in some cases) can dramatically reduce what the IRS expects you to pay each month.
• IRS systems are sophisticated at spotting red flags, from mismatched income documents to obviously “made up” rounded expenses that all end in zeros.

“Dealing with the IRS, they're the most brutal collection agency on the planet. They want to get paid in full today.” - Peter Marchiano

Purchase Pete's book The Tax Resolution Playbook to navigate IRS challenges with confidence and peace of mind:

https://www.amazon.com/Tax-Resolution-Playbook-Offensive-Strategies/dp/1956220119

About Peter Marchiano:

Peter J. Marchiano, JR. is the premier provider of tax relief in the Toms River Area. We understand the stress and sleepless nights that dealing with government agencies can bring. He will develop a strategic plan and negotiate on your behalf with the tax authorities.

He promises to provide you with an unparalleled level of service and guidance every step of the way. It is about redefining what you expect from your tax professional. It is more than just taxes; it is about being a true partner in your success.

Connect with Peter Marchiano:

Website: https://www.marchianocpa.com/

Phone: (732) 606-9199

Show notes by Podcastologist: Hanz Jimuel Alvarez

Audio production by Turnkey Podcast Productions. You're the expert. Your podcast will prove it.

In this episode of The Tax Resolution Playbook, host Doug Sandler talks to Pete Marchiano, a CPA and Tax Resolution Specialist. They dive deep into the daunting world of IRS penalties. Pete understands that receiving a letter from the IRS can strike fear into the hearts of many, but he's here to provide guidance and expertise to help navigate through these challenging situations.

Listen to Learn: 

• Facing the Fear of IRS Letters: Pete acknowledges that getting a letter from the IRS can be anxiety-inducing, but he reassures listeners that there are strategies and solutions available to resolve any issues that may arise.
• Introduction to the Tax Resolution Playbook: Pete shares insights into his newly released Tax Resolution Playbook, designed to equip individuals and businesses with the knowledge and strategies needed to tackle IRS challenges effectively.
• Penalties - The Most Popular Episode: Pete reflects on the popularity of the episode focusing on penalties, emphasizing the importance of understanding the various types of penalties the IRS can impose and how to address them.
• Types of IRS Penalties: Pete discusses the different types of penalties the IRS can impose on individuals or businesses, ranging from failure to file to accuracy-related penalties.
• Communication and Notification: Pete explains how the IRS typically communicates penalties to taxpayers and the importance of addressing them promptly to avoid further complications.
• Addressing Penalties: Pete outlines the process and timeline for addressing IRS penalties, emphasizing the need for proactive action and compliance.
• Factors Affecting Penalty Calculation: Pete delves into the factors the IRS considers when calculating the amount of penalties, including the severity of the violation and taxpayer compliance history.
• Negotiation and Relief: Pete explores whether taxpayers can negotiate with the IRS to reduce or eliminate penalties and provides insights into requesting penalty relief or abatement.
• Consequences of Non-Payment: Pete discusses the consequences of not paying IRS penalties on time, including accruing interest and potential enforcement actions.
• Requesting Penalty Relief: Pete explains how taxpayers can request penalty relief or abatement from the IRS, including eligibility criteria and necessary documentation.

Purchase Pete's book The Tax Resolution Playbook to navigate IRS challenges with confidence and peace of mind:

https://www.amazon.com/Tax-Resolution-Playbook-Offensive-Strategies/dp/1956220119

If you're like most people, you're afraid of penalties from the IRS. Pete talks about the most common ones taxpayers make and how to avoid them. If you're looking to avoid issues with the IRS, this wrap-up episode of The Tax Resolution Playbook is for you!