Taxpayers who have unpaid taxes are charged penalties and interest monthly until the entire tax debt amount is paid. Even if taxpayers are unable to reduce their tax debt amount, they can certainly get their penalties reduced or terminated through a Penalty Abatement. IRS Tax Attorney Network stresses that penalties can only be removed or reduced under certain conditions.
Filing for a Penalty Abatement has a higher chance of being accepted by the IRS, and the program is preferred over other tax debt reduction programs, such as an Offer in Compromise. Moreover, a Penalty Abatement has a higher success rate and also keeps taxpayers’ finances private.
Eligibility for a Penalty Abatement
Only taxpayers who are unable to pay their taxes because of unavoidable circumstances can hope to qualify for a Penalty Abatement. IRS Tax Attorney Network informs taxpayers that although acceptance of a request for Penalty Abatement depends upon the judgement of the IRS, there are some specific factors that are almost always accepted. These include:
- Unavoidable circumstances, such as severe health problems, divorce, death of a family member, natural disasters, theft, and unemployment.
- Substitute for Return debt, but the reason for non-filing needs to be convincing.
- Non-filing of taxes due to circumstances beyond the control of the taxpayer, and non-filing/paying of taxes is not a habit.
The Process of a Penalty Abatement
IRS Tax Attorney Network reveals that taxpayers can qualify for the abatement of penalties if they are confident of the reason for their failure to file, and also if they file for the Penalty Abatement correctly. Taxpayers can use IRS Form 843 to file for a Penalty Abatement. However, IRS Tax Attorney Network warns taxpayers that filing incorrectly may hinder the chances of a taxpayer to qualify for an abatement.
As IRS Form 843 is also used to request a refund for a variety of situations, taxpayers need to make sure they are filling the proper sections of the form. IRS Tax Attorney Network suggests taxpayers take the help of tax professionals if they find it difficult to successfully file for a Penalty Abatement.
Getting Help for Filing a Penalty Abatement
Tax professionals guide taxpayers in finding the most suitable IRS payment option for their situation. In the cases of failing to file taxes on time, taxpayers have the choice of choosing a tax debt payment program, file for a Penalty Abatement, file for a tax reduction, or challenge the claim to the IRS. A tax professional will choose the correct option that provides the maximum benefit to taxpayers.
Before choosing to file for a Penalty Abatement, IRS Tax Attorney Network suggests taxpayers explore other options that can provide more benefits to them. Although a Penalty Abatement can save money, it should only be chosen after a taxpayer cannot qualify for other tax reduction methods. It is a waste of time and effort to apply for an IRS program that taxpayers have little chance of being approved for.
IRS Tax Attorney Network urges taxpayers to research IRS programs extensively before choosing to file for a Penalty Abatement. Taxpayers who want to save time should seek expert tax debt help for a Penalty Abatement, which can be found on the IRS Tax Attorney Network website.
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