Are you looking for a tax liability and penalty relief lawyer in Hanover, MD? At Crepeau Mourges, we have built a tax liability and penalty relief practice on 40 years of combined client representation.
If the IRS or the Comptroller of Maryland has piled penalties and interest onto a tax balance in Hanover, the amount on your notice may not be what you actually owe. Many penalties can be challenged, reduced, or removed. Working with our Hanover, MD tax liability and penalty relief lawyer means every assessment gets examined line by line. The firm’s founders are each licensed as both an attorney and a certified public accountant, and together they have practiced for 40 years. Call us today to schedule your consultation.
Tax Liability and Penalty Relief Lawyer Hanover, MD
Our Hanover tax liability and penalty relief lawyer represents people and businesses who owe, or are told they owe, federal or state tax plus added charges. The job has two parts. One is testing whether the underlying liability is correct. The other is seeking removal or reduction of the penalties stacked on top of it, through channels such as first-time penalty abatement and reasonable cause.
The Comptroller of Maryland withheld $203,973,293 from tax year 2024 personal income tax refunds to cover outstanding state liabilities, according to its 2024 income tax report. An old state balance, penalties included, can absorb a refund before it ever reaches the taxpayer.
Types of Tax Liability and Penalty Relief Cases We Handle in Hanover
Penalties attach to almost every kind of tax problem. Some arrive with a late return, and others follow an audit or years of unpaid payroll tax. Our Hanover tax liability attorneys handle matters including:
- Tax return. Failure-to-file and failure-to-pay charges grow each month a balance stays open. We check the IRS math, then request abatement where the compliance history or the circumstances justify it.
- Accuracy-related penalties. These follow an audit or a CP2000 notice claiming income was underreported. We gather records showing good faith and challenge the penalty along with the adjustment behind it.
- Tax audits. A proposed deficiency is only as strong as the examiner’s evidence. We contest unsupported changes before they become a final assessment. Penalties tied to those changes fall with them.
- Employment taxes. The IRS can hold owners, officers, and even bookkeepers personally liable for unpaid payroll withholding. We dispute who counts as a responsible person and whether the failure was willful.
- Employment tax reporting. Late or incorrect W-2 and 1099 filings can produce large penalties for employers. We use the administrative process to obtain records and seek full abatement.
- FBAR. Missed foreign account reports and international information return penalties can exceed the tax itself. We evaluate the exposure and the paths available to reduce it.
- Innocent spouse relief. A joint return makes both spouses answerable for the full bill. Innocent spouse claims can separate you from a liability created by a current or former spouse’s reporting.
- IRS collections. Liens, levies, and wage garnishments usually follow unpaid penalties. We negotiate installment agreements, currently not collectible status, and other alternatives that can pause enforcement.
- IRS tax liens. A filed lien can damage credit and complicate a home sale or refinance. We pursue withdrawal, discharge, or subordination when the facts allow.
- IRS negotiation and litigation. Some liabilities are resolved at the table, and others require a petition to the U.S. Tax Court. Our Hanover tax liability and penalty relief lawyer prepares for both from the start.
Why Choose Crepeau Mourges as My Tax Liability and Penalty Relief Lawyer in Hanover, MD?
Maryland Tax Controversy Experience
Brandon N. Mourges focused on tax controversy and criminal defense at Rosenberg Martin Greenberg, LLP before co-founding our firm. He is licensed in five jurisdictions, including Maryland, and admitted to the U.S. Tax Court. His recognitions include the Maryland State Bar Association‘s J. Ronald Shiff Memorial Pro Bono Award, a spot on Benchmark Litigation‘s 40 & Under Hot List, and JD Supra‘s 2020 Readers’ Choice Top Author (Tax) honor.
Brian J. Crepeau concentrates on federal and state tax controversy and represents clients through every phase of administrative disputes with the IRS and the Comptroller of Maryland. A CPA and Certified Fraud Examiner, he studied accounting at Bridgewater State University before law school. Penalty disputes turn on records, deadlines, and agency procedure. Both founders read financial records as CPAs, which helps when the numbers themselves are contested. That daily work is what you should expect from a tax lawyer in Hanover, MD.
Penalties Removed and Liabilities Reduced
Our Hanover tax liability and penalty relief attorneys have delivered many positive results, including:
- Over $300,000 in assessed trust fund recovery penalties was withdrawn in full after a Collection Due Process challenge based on inadequate notice.
- Substantial information reporting penalties proposed against several large employers were abated in full.
- A client facing more than $1 million in tax, interest, and penalties from a spouse’s return received complete innocent spouse relief.
- A proposed deficiency of over $1,000,000 involving fraud penalties settled for under $100,000.
Past results do not guarantee a similar outcome.
Understanding Tax Liability and Penalty Relief Cases
Penalties, Liability, and Relief Options in Tax Liability Cases
A tax bill usually has three layers: the tax itself, interest, and one or more penalties. Our Hanover tax liability and penalty relief attorneys can help with every layer.
- Negligence penalty. Under the accuracy-related penalty rules, the IRS may add 20% of an underpayment caused by negligence or disregard of the rules. Negligence means failing to make a reasonable attempt to follow the tax laws.
- Reasonable cause. Relief may be granted when a taxpayer used ordinary care but still could not comply because of circumstances such as serious illness or a disaster.
- First-time abatement. This administrative waiver can remove certain filing, payment, and deposit penalties for taxpayers with a clean recent compliance history.
- Joint liability. Spouses who file jointly are each responsible for the entire balance. Traditional innocent spouse relief and separation of liability, both requested on Form 8857, generally must be sought within two years after the IRS begins collection activity against the requesting spouse. Equitable relief is not bound by that two-year limit, though other time limits still apply.
- Interest. Interest generally continues to run until the balance is paid, and it is removed only in limited situations.
- Collection deadline. Once tax is assessed, the IRS generally has a 10-year collection period, which events such as an offer in compromise or a bankruptcy filing can suspend.
Penalties the Comptroller of Maryland assesses follow separate state rules, and relief there requires its own request.
What Are Important Aspects of a Tax Liability and Penalty Relief Case?
The strongest relief requests are built on proof, not explanation alone, which our Hanover tax liability and penalty relief attorneys can help with. Several factors carry the most weight.
- Documentation dated to the period in question, such as hospital records, insurance claims, or correspondence with a preparer.
- The taxpayer’s compliance history for earlier years.
- Whether current returns are filed and current payments are being made, which the IRS often expects before granting relief.
- Whether a penalty qualifies for first-time abatement or only for reasonable cause, since each requires a different showing.
- The order of requests. Resolving penalties before negotiating a payment plan can shrink the balance being negotiated.
What Is the Tax Liability and Penalty Relief Case Timeline?
Simple first-time abatement requests can move quickly. Contested liabilities and appeals take longer. When working with our Hanover tax liability and penalty relief lawyer, you can expect the following steps:
- Transcript pull and review of every assessment, penalty, and interest charge.
- Filing any missing returns so the account is in current compliance.
- A written abatement request or liability challenge, supported by records.
- Appeal through the IRS Independent Office of Appeals if the request is denied, and litigation where the law allows it.
- Collection resolution for whatever balance remains.
Interest continues to run during this process, which is one reason we start with the penalties that can be removed fastest.
What Should You Bring to Your Tax Liability and Penalty Relief Consultation?
Penalty relief depends heavily on paperwork, so bring as much of it as you can to your meeting with our Hanover penalty relief attorney:
- IRS and Comptroller notices showing each penalty charged.
- Records explaining why a deadline was missed, such as medical, insurance, or death records.
- Returns for the years at issue and the years before them.
- Proof of payments made, including bank statements and canceled checks.
- Divorce or separation documents, if a joint liability is involved.
We’ll use the meeting to identify which relief options fit your account and what each one would require. There is no charge for the initial consultation.
Hanover-Area Tax Collection Offices and Resources
Penalty and collection disputes in Hanover run through federal and state offices located mostly in Baltimore and Annapolis.
- Comptroller of Maryland. The Comptroller handles state assessments, penalties, and payment plans, with in-person branch offices across Maryland. Its Taxpayer Advocate office works one-on-one with taxpayers whose state tax problems haven’t been resolved through ordinary channels.
- IRS Taxpayer Advocate Service. This independent IRS organization helps taxpayers facing financial hardship or unresolved IRS problems, and its local office contacts are listed by state.
- IRS Taxpayer Assistance Center. The Baltimore office at 31 Hopkins Plaza can help with penalty notices and payment arrangements. Visits require an appointment, as with all Maryland IRS locations.
- U.S. Tax Court. This court hears Collection Due Process appeals and deficiency cases, including disputes over penalties.
- Maryland Tax Court. Located at 301 West Preston Street in Baltimore, this independent agency hears appeals from final Comptroller decisions on state tax and penalty assessments. Before reaching it, taxpayers generally go through the Comptroller’s hearings and appeals process.
Reach Out to Crepeau Mourges to Schedule a Consultation
Relief options are easiest to evaluate while the notices are still recent. Crepeau Mourges provides a free consultation with our Hanover tax liability and penalty relief lawyer. We will walk through your notices, identify relief that may apply, and explain the next step. Calls are answered around the clock. Contact us today to schedule your consultation to hear more.
