The IRS has many civil penalties to encourage voluntary tax compliance of taxpayers.

The Failure to File Return Penalty is 5% of the net amount of tax due on the return for each month the return is delinquent, up to a maximum of 25%. The Failure to Pay Tax Penalty is 0.5% of the tax per month, up to 25%. Accuracy Related Penalty is equal to 20% of the portion of the underpayment attributable to negligence or disregard of rules or regulations, or a substantial understatement of tax.

The non-willful failure to file the FBAR can result in a $10,000 penalty per year. Managerial approval is needed to assert non-willful FBAR penalties up to 50% of the highest aggregate account balance per year. Generally, the willful failure to file FBAR penalty is the greater of either $100,000 or 50% of the highest aggregate account value per year, capped at 100% of the highest aggregate account balance.

The IRS can abate these penalties if the taxpayer can demonstrate reasonable cause and the failure was not due to willful neglect. Reach out to a Washington DC IRS penalty abatement lawyer for assistance in that situation.


Client Reviews

John helped us with a DC tax audit and succeeded in getting us a "no change" final decision. The issues were related to two flow-through entities and the use of carry-forward operating losses -- something that the DC auditors struggled to understand and with which they did not have any...
Paul A
Mr. Pontius is extremely professional and was able to take care of my tax returns which includes international bank accounts quickly and at a very reasonable price. Would definitely recommend.
I received a fee this past November from the IRS for over $800 because of an error I made on my 2016 taxes. I called my cousin, John Pontius, and he immediately knew what steps needed to be taken. Thanks to him, the fee was cleared. A 10 minute conversation...
As an American citizen living in the Middle East my local banker informed me that I needed to file FBARs and report my worldwide income to the IRS. Through the recommendation of another attorney at an international law firm, I was introduced to John Pontius. Mr. Pontius efficiently and effectively...
Kareem S
John handled a difficult IRS lien for my client. He was excellent in getting the lien released so we could close on the property. I would highly recommend John .
Bobbie M
We were seeking tax advice with managing two properties, LLC, as well as some future financial planning. John responded to my call in a timely manner and was happy to answer our questions while referring us to specialists who can manage our accounts on a more regular basis.
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