Penalty Abatement

Abatement of Penalties & Interest
Penalty Abatement is an IRS program where the IRS removes some or all of the accumulated penalties from the tax debt, substantially reducing the total of the overall amount.
The IRS enforces penalties to encourage voluntary compliance of the tax code. Compliance consists of preparing an accurate return, filing it in a timely manner, and paying any tax due. Efforts made to fulfill these obligations constitute compliant behavior according to the IRS. Most penalties apply to behavior that fails to meet any or all of these obligations.
The IRS has the authority to assess over 140 different types of penalties, which include the following.
The purpose of penalties is to encourage voluntary compliance to fulfill certain obligations, i.e, preparing an accurate return, filing it timely, and paying any tax due. Since the application of these penalties must promote a tax system that is fair and effective, a taxpayer may seek relief from penalties if they have not been administered uniformly, accurately, and impartially. The taxpayer has the opportunity to have their interests heard and may qualify for relief from those penalties under one of the following categories:
reasonable cause
statutory exceptions
administrative waivers
correction of service error

To qualify for Penalty Abatement, you must show reasonable cause for your failure to fulfill your obligations. Relief will be granted on the basis of reasonable cause if the taxpayer exercised ordinary business care and prudence in determining their tax obligations but was unable to comply with those obligations.

Reasonable cause is based on all the facts and circumstances in each situation and can include:
Death of a family member
Serious health problem
Bad or erroneous financial advice
Flood, hurricane, fire or other natural disaster
Theft of funds, including embezzlement
Lost or destroyed records
Divorce that caused extreme stress and deteriorated your financial condition
Unemployment for an extended period of time
Fixed income or retiree
Financial strain caused by caring for another person
The application for a Penalty Abatement is reviewed by a IRS, and is entirely up to them to make the final decision.
When you are ready for help, give us a call today. With our guidance, you can secure an abatement quickly and efficiently that can result in you paying the lowest tax possible.