IRS Penalty Abatement
Tax Attorneys to Help With IRS Penalty Abatement Program
What Is Penalty Abatement?
A penalty abatement program is to help you reduce the amount of penalties and interest the IRS keeps adding to the amount they say you owe. If you’re struggling to pay your back taxes, the last thing you need to do is pay additional penalties. If you qualify for a penalty abatement, there are ways to get those penalties removed. The goal is to help you get back on track with your taxes and reduce the amount of penalties you owe.
An affordable tax debt amount can become huge when you include IRS penalties and interest. Nevertheless, it’s possible to remove IRS penalties and considerably lower the tax debt amount. If any of the scenarios caused the tax debt, you have a case for penalty abatement and you must get in touch with a professional right away: Natural catastrophe, tax records lost or destroyed, set income (or retired), victim of theft, victim of bad monetary advice, or victim of serious health problems.
So what is Penalty Abatement and how does it work?
A sensible tax debt amount can become astronomical when you include IRS penalties and interest. Nevertheless, it’s possible to eliminate IRS penalties and considerably reduce the tax debt amount. If any of the circumstances triggered the tax debt, you have a case for penalty abatement and you need to contact a professional immediately:
- Natural catastrophe
- Tax records lost or destroyed
- Set income (or retired)
- Victim of theft, victim of bad financial guidance, or victim of severe health problems.
The most common IRS charge relief program used is called “Reasonable Cause”. The Internal Revenue Manual offers the following meaning. “Reasonable cause relief is normally granted when the taxpayer works out normal business care and prudence in determining their tax responsibilities however is unable to abide by those obligations.”
The following list is drawn from the IRM or Internal Revenue Manual that provides the guidelines of what IRS representatives are advised to look at when considering penalty abatement:
- What are the events that happened, when did it happen, and why did these occasions avoid you from adhering to the tax law?
- How were your other affairs handled during this time? Did the you (or does it appear) single out the IRS not to be but paid other lenders?
- What steps were required to try and mitigate your situations? Normal company care and prudence is closely taken a look at here.
- Exists a direct “timeline” correlation in between what occurred and the taxes being file late or not paid?
- Is there a history of filing and or paying late? The IRS is going to take a look at your history; repeat transgressors, have a tougher task persuading the IRS that this was not intentional.
- Were the situations “beyond the control of the taxpayer” really unavoidable, and could not be expected? If so, this normally establishes sensible cause.
How Our Tax Attorneys Can Help With a Penalty Abatement
If you qualify for a penalty abatement, the penalties and interest can be negotiated by our tax attorneys to help you pay less money. This is why speaking to a qualified penalty abatement attorney is so important. Our experienced attorneys should be able to help assess your situation and come to a solution that works for you, as well as the IRS.