PENALTY ABATEMENT

PENALTY ABATEMENT

Did you receive a notice from the Internal Revenue Service saying you owe a penalty? Since there are over 150 different kinds of IRS penalties, it is important that rather than just blindly paying the amount the IRS says you owe, you take the time to learn why the IRS is charging you the penalty and determine whether the notice is correct, or if the information they have is in error. If you do not agree with the facts of the letter or wish to try to get the penalty reduced or eliminated, in many cases you can get the penalty wholly or partially removed. It is important you respond timely to Internal Revenue Service notices to ensure you retain all your rights. We have assisted hundreds of taxpayers in having their penalties reduced or eliminated. If you have any questions you would like additional information, give us a call at 1-800-408-3122 or email us at taxhelp@iowetaxes.com.

Understanding Penalty Abatement

A penalty abatement is a tax problem resolution designed to fully eliminate or lessen the degree of IRS penalties. The IRS penalties can roll out penalties that range from imprisonment to civil fines. Those fines can be over 25 percent of the total owed to the IRS.

If you have tried applying for an offer in compromise and it was rejected, penalty abatement is the next best tax problem resolution to consider. You can use it when negotiating repayment terms or an installment agreement.

How can we help you?

We can work with you to make payment arrangements that the IRS will allow. If there were circumstances beyond your control that prevented you from paying your tax debt and led to delinquency, we are able to challenge the penalties and interest that have built up. Relief from penalties falls into four separate categories: Reasonable Cause, Statutory Exceptions, Administrative Waivers, and Correction in Service Error.

Penalty Abatement can be the best solution in resolving IRS Tax Debt, and we can help you determine if this may be an option for you.

Reasonable cause

If a taxpayer can show they exercised ordinary business care and prudence, in many situations it is possible to qualify for abatement of IRS penalties.

First Time Penalty Abatement

This type of penalty abatement is a waiver the Internal Revenue Service can give for failure to file, failure to pay or failure to timely deposit penalties if certain criteria are met.

Statutory Relief

If you feel you were assessed a penalty because of erroneous written advice from the Internal Revenue Service, it is possible to have a penalty waived due to a statutory exception.

Questions You Might Have

There are over 150 different types of IRS penalties. The approach to trying to get the penalty forgiven will vary depending on the type of penalty.
Depending on the specifics of the individual situation, the IRS not only has the authority, but often reduces or eliminates penalties that have been assessed. It is also very important to examine the IRS notice explaining the penalty very carefully to ensure that the facts the IRS based the penalty on are correct.
Depending on the particular situation, it may be possible to get relief from the most common penalties including failure to timely file a tax return, failure to pay tax on time, failing to make certain tax deposits on time and many other penalties.
The Internal Revenue Service often reduces or eliminates penalties based upon reasonable cause. The IRS can remove penalties based upon a statutory exception and also, if you are a first time offender, it is possible in many situations to get a first time penalty abatement.
Interest by the Internal Revenue Service is charged by law, and while the penalties can be abated in many cases, the interest will remain provided the IRS notice is correct. However, the interest portion charged on any penalty amount that is eventually abated will also be removed.
To request abatement, you or your representative will have to contact the Internal Revenue Service directly, explaining your individual situation in detail and providing any backup documentation that supports your position. This can be done by using IRS Form number 843, which is a Claim for Refund and Request For Abatement. You could also submit a detailed Penalty Abatement Request letter, instead of the Form 843 if you prefer to correspond by letter explaining the situation. There are also situations where the representatives at the telephone number on your letter may possibly be able to assist you depending on your unique situation.
If the IRS does not initially grant your request for relief, you can still appeal the decision by carefully following the instructions provided in the IRS letter denying you relief. This is often not a quick process though and you should be aware that the process can take a year or more from beginning to end.
Call us at 1-800-408-3122 or you can email us at taxhelp@iowetaxes.com for a free no obligation consultation.

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