What is an IRS Penalty Abatement?An IRS Penalty Abatement is considered a way to lower the amount of the tax payment you owe the IRS. Depending on the reason that you were assessed a penalty fee, the IRS can choose to remove or lower those penalties and possibly interest.
Reasons for IRS Penalty Abatement:
- Natural disaster
- Serious Illness or Death
- IRS Error
- Written advice from the IRS
- Undue hardship
- Ignorance of the law
- Reasonable Cause
The IRS is not known for being nice, but they will try and work with you. If you are delinquent on your taxes, you have many options available to help you pay them. If you do not qualify for the penalty abatement, you will probably still qualify for an installment agreement, or a payment plan. For more information on tax relief, visit this page.
AN IRS PENALTY ABATEMENT.
First Time Penalty Abatement:For a tax payer who is delinquent for the first time, the IRS First Time Penalty Abatement can be a good option. The individual must have a 3 year clear penalty history plus all taxes must be filed and up to date. The individual must also have paid or set up an agreement to pay all owed taxes. In short, if you always file and pay your taxes in a timely manner, and this is the first time you have been delinquent, you should try for the IRS Penalty Abatement.
The failure to file and failure to pay penalties can add up quickly, and this option can help reduce the total amount you owe the IRS. Just make sure to continue making your scheduled payments, so the IRS doesn’t tack on any other penalties.