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The Reasonable Causes Qualified by the IRS to Abate a Tax Penalty

The Reasonable Causes Qualified by the IRS to Abate a Tax Penalty

By on Oct 23, 2017 in IRS, Tax Tips | 0 comments

In light of all of the natural disasters that have displaced people from their homes, Success Tax Relief would like to alleviate some concerns regarding tax responsibilities for some victims affected by such tragedies. The Internal Revenue Service (IRS) will abate a tax penalty if extreme circumstances call for it.

This doesn’t mean that anyone affected in any of the most recent hurricanes or fires will be absolved of their tax penalties or obligations either. Like any tax case, the IRS will need to conduct a thorough investigation to determine whether or not an individual qualifies for tax abatement.

Reasonable Cause is Needed to Qualify for Tax Abatement

First, the IRS needs to establish that you have a Reasonable Cause. Here are some situations that might fall under such terms:

  • Natural disaster like a tornado, earthquake, hurricane, or a disturbance like a fire
  • Death or serious illness that renders one unable to carry out taxpayer responsibilities
  • Any other reason that proves you have done everything possible to meet your tax obligations, but still wasn’t able to take care of the responsibility

Many people may confuse the last bullet point with just not having enough money, but according to the IRS, it’s not the same. Not having the funds is not a good enough reasonable cause. It’s rather why you don’t have the money. This is the question that the IRS will investigate should you file for a tax abatement. You will need to be able to clearly communicate what events occurred that has rendered you unable to pay your tax obligations and what efforts you’ve made to try and pay.

The IRS Will Investigate Deep into Your Financial Situation

The IRS will go further into your situation to determine if your circumstances have changed that would’ve allowed you to make the payments. Then they’ll determine if those changes made it possible for you to meet your tax obligations and if so, why didn’t you do it? What this all means for you is that you’re going to need to provide the proper documentation to support why you should qualify for an IRS tax abatement.

If you’re able to support such claims, it’s highly probable that the IRS will waive your tax penalties for a certain period of time.

You Can Always Get Help

If you are truly a victim of a natural disaster, don’t let the worry of tax responsibilities weigh you down. Let the professionals at Success Tax Relief carry that burden for you. We are a team of experienced tax lawyers, attorneys, CPA accountants, and tax caseworkers with a collective period of 3 decades worth of experience. We’ve resolved tax matters related to audits, tax preparation, filing Offers in Compromise, arranging affordable installment agreements and personal and business credit counseling.

Success Tax Relief is based in Houston, Texas with another office in Atlanta, Georgia. We also offer a free first-time consultation to see for yourself how we can help. Call our 877-825-1179 to be directed to either one of our locations or contact us online if you have a quick question.

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