Worried About Mounting IRS Tax Penalties? Find Out How to Abate Or Remove Them
Many would agree it is difficult to settle IRS tax debt in terms of the original balance you owe then it is to negate some penalties.
Going through the penalty abatement process with the IRS is not quick and simple.
That being said, you may be able to get your penalties negated or reduced if you meet the proper requirements and file the proper paperwork.
Generally speaking, it relieves you from some (or in many cases all) of the penalties you have accrued from back taxes.
For those who can explain why they have not been able to pay their taxes the penalty abatement process may work in their favor.
If you wish to get certain penalties abated you must persuade the IRS that there was a good reason as to why you did not pay your taxes.
They are willing to listen, but you must have a reasonable and believable case.
There are three common ways to present your case to the IRS: 1.
A written statement is most common.
This allows you to state your case in a short letter to the IRS.
2.
If you do not think a written statement will work you have the right to request a verbal interview.
3.
You can file Form 843 to present a short version of your case, as well as the reasons why you feel you qualify to abate tax penalties.
Do I qualify? This is the million dollar question that every taxpayer in this situation asks.
Simply put, penalty abatement is assessed on a case by case basis.
In other words, your case will be reviewed by the proper individuals within the IRS.
If you have reasonable cause for requesting penalty abatement you have a chance to "win.
" Of course, it is your job to sell your story and show that your cause is reasonable.
There are many circumstances in which penalty abatement is usually granted to the taxpayer: 1.
If your records were destroyed in a natural disaster.
2.
If a natural disaster made it difficult for you to pay your taxes on time.
3.
If your business was targeted in a crime such as embezzlement.
In the end, expect the IRS to get in touch with you to determine just where you stand.
They will want to know if this is simply an attempt to get out of paying penalties, or if you have a serious issue that caused you to fall behind.
Be sure to present your case in the best possible light, and answer all questions that are asked of you.
If you take the proper steps and have a case that hits home with the IRS there is a very good chance that you will be granted penalty abatement.
If you smart, find a great tax relief firm to help you.
Going through the penalty abatement process with the IRS is not quick and simple.
That being said, you may be able to get your penalties negated or reduced if you meet the proper requirements and file the proper paperwork.
Generally speaking, it relieves you from some (or in many cases all) of the penalties you have accrued from back taxes.
For those who can explain why they have not been able to pay their taxes the penalty abatement process may work in their favor.
If you wish to get certain penalties abated you must persuade the IRS that there was a good reason as to why you did not pay your taxes.
They are willing to listen, but you must have a reasonable and believable case.
There are three common ways to present your case to the IRS: 1.
A written statement is most common.
This allows you to state your case in a short letter to the IRS.
2.
If you do not think a written statement will work you have the right to request a verbal interview.
3.
You can file Form 843 to present a short version of your case, as well as the reasons why you feel you qualify to abate tax penalties.
Do I qualify? This is the million dollar question that every taxpayer in this situation asks.
Simply put, penalty abatement is assessed on a case by case basis.
In other words, your case will be reviewed by the proper individuals within the IRS.
If you have reasonable cause for requesting penalty abatement you have a chance to "win.
" Of course, it is your job to sell your story and show that your cause is reasonable.
There are many circumstances in which penalty abatement is usually granted to the taxpayer: 1.
If your records were destroyed in a natural disaster.
2.
If a natural disaster made it difficult for you to pay your taxes on time.
3.
If your business was targeted in a crime such as embezzlement.
In the end, expect the IRS to get in touch with you to determine just where you stand.
They will want to know if this is simply an attempt to get out of paying penalties, or if you have a serious issue that caused you to fall behind.
Be sure to present your case in the best possible light, and answer all questions that are asked of you.
If you take the proper steps and have a case that hits home with the IRS there is a very good chance that you will be granted penalty abatement.
If you smart, find a great tax relief firm to help you.
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