Penalty abatement is the elimination of the penalties assessed on not filing or not paying taxes on time. In many cases the Penalty and Interest portion of the tax liability can be significant and could be removed by filing for a Penalty Abatement with the IRS.
The IRS might be willing to review and remove penalties if there is a reasonable cause. Reasonable cause includes:
- Mailing a return with a payment on time to the wrong address;
- A death or illness;
- An IRS error;
- Destruction of records by catastrophe
Through a successful tax resolution, some penalties can eventually be removed by the IRS.
If you would like to know your options, please contact us for a free consultation. Whether you retain our services or not, you will still have a clearer idea about what you need to do and the IRS' collection process.