Penalty Abatement

Penalty Abatement

What is an IRS Penalty Abatement?

The IRS is killing me with all the Penalties and Interest they keep including on to my Tax Debt.

Have you stated this recently? I hear it all the time when talking with people from all over the nation that searching for Tax Debt Help.

A reasonable tax debt quantity can end up being astronomical when you include IRS penalties and interest. However, it’s possible to eliminate IRS charges and greatly minimize the tax financial obligation amount. If any of the scenarios triggered the tax debt, you have a case for penalty abatement and you must call a professional right away: Natural disaster, tax records lost or destroyed, fixed income (or retired), victim of theft, victim of bad monetary suggestions, or victim of major illness.

So exactly what is Penalty Abatement and how does it work?– The most common IRS penalty relief program utilized is called “Reasonable Cause”. The Internal Revenue Manual provides the following definition. “Reasonable cause relief is generally given when the taxpayer works out regular business care and prudence in determining their tax commitments but is not able to adhere to those commitments.”.

Basically, that means something has actually happened beyond your control that has triggered you not to file or pay your taxes in a timely manner. You also need to show that you (the taxpayer) took reasonable steps to “counter” the events and were still not able to pay and or file prompt.

How Does the IRS Penalty Abatement work?

The following list is extracted from the IRM or Internal Revenue Manual that gives the guidelines of exactly what IRS agents are advised to take a look at when thinking about penalty abatement:.

What are the events that occurred, when did it take place, and why did these occasions prevent you from complying with the tax law?
How were your other affairs dealt with throughout this time? Did the you (or does it appear) single out the IRS not to be but paid other creditors? What steps were taken to try and mitigate your circumstances? Normal company care and vigilance is closely looked at here.
Exists a direct “timeline” connection between what happened and the taxes being file late or not paid?
Exists a history of filing and or paying late? The IRS is going to take a look at your history; repeat transgressors, have a harder job convincing the IRS that this was not deliberate.
Were the circumstances “beyond the control of the taxpayer” truly inescapable, and could not be expected? If so, this generally establishes reasonable cause.
Documentation will be the bulwark of your case. Offer as much proof of what you are saying as possible. The “3rd party” evidence you produce the better the possibilities for relief.

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