Is Penalty Abatement the Right Strategy for You?
The IRS assesses millions of penalties against taxpayers each year. These penalties can be for filing late, not filing at all, not paying debt owed to the IRS, and penalties related to submitting incorrect (or inaccurate) returns. What you may not realize is that the IRS actually also abates (or lessens) many penalties each year. So, how do you know if a penalty abatement is a viable strategy for you? When does a request to the IRS for penalty abatement work? You have the best chance of receiving a tax penalty abatement if you have what the IRS considers to be a reasonable cause. Examples of these causes are death or serious illness, undue hardship, written or oral advice from the IRS, ignorance of law, or a victim of a natural disaster. Taxpayers have the best chance of receiving an abatement if they are able to directly reference an area of the IRS Penalty Handbook in their request. In addition to these reasonable causes, the IRS very often applies a first time abatement rule if the taxpayer has not previously had a tax delinquency. It is important to note that this first time abatement rule must be requested in writing; it is not automatically given by the IRS. This is a very viable option for those who have a strong record of filing and paying taxes on time. So, if the IRS has assessed you with your first tax penalty, you have a very good chance of receiving an abatement if you proceeded carefully.
● Make your request for abatement in writing
● Make sure to include any extenuating circumstances that contributed to your tardiness with your tax return/payment
● Follow-up on your written request by phone approximately 2-4 weeks after your request
● Seek advice of an experienced tax relief firm for help with this process
Your very best chance to receive an abatement from the IRS is in your initial request. As a result, it is very important that your initial request is strong, has appropriate information and that your contact information is included. It might be wise to partner with a tax firm to ensure that this process is done correctly.
Partner with Success
Success Tax Relief has helped thousands of customers reduce penalties levied by the IRS. We have helped write and submit letters of request and generally have an understanding of what the IRS is looking for and what they will likely grant and deny. So, do not take a chance – let us help you reduce your penalties so that you can pay the debt you owe, without additional fees and interest. Our trusted representatives are standing by right now ready to talk to you and help you solve your unique tax issues. We can help reduce penalties, provide audit support, help with routine tax preparation and help you apply for installment agreements or an offer in compromise. No matter what your tax situation, we can help! Contact us today!