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Irs Penalty Abatement Options
There are many situations where an individual may qualify for IRS penalty abatement, which is where the Internal Revenue Service eliminates the penalties that have been charged against an individual for one reason or another. Imagine if you receive an IRS substitute for return that states how much you owe, and it is in the thousands. This is undesirable even if you knew it was coming, but if you thought your accountant had filed your taxes and you were in the clear it is downright shocking. This is a situation where IRS penalty abatement can easily be justifiable. When tax problems come from a situation that is out of your control you can apply for IRS penalty abatement, which starts by writing a letter that states what penalties the Internal Revenue Service assessed, explains your protests and requests the abatement. Tax relief is not something that is automatically granted, though, so it is very important for all the documents sent to the IRS to be correct and complete. IRS penalty abatement requires pleading your case with the IRS, whether you had a crooked partner who was embezzling money or you couldn't finish your taxes because you were in a hurricane. If you receive one of those IRS substitute for return forms that states an amount of debt that you owed and it is legitimate, though, you will still owe the actual amount of the tax debt even if you qualify for abatement. The IRS penalty abatement can still reduce the amount owed by as much as 30 percent because it will remove unjustifiable fees and penalties that were added to that debt. This type of tax relief can make the debt manageable, and if the IRS is willing to work with you they could set an income tax payment plan or some other agreement.
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