Understanding Abatement of Penalties and Interest with the IRS

Understanding Abatement of Penalties and Interest

If you are behind on your IRS tax payments, it is important to be mindful of IRS penalties and interest charges. The longer your debt remains unpaid, the more penalties and interest can accumulate. If neglected for a long enough time, IRS penalties and interest can become a serious issue. In fact, IRS penalties can rise up to 25% of your debt and quickly make your debt balloon. Fortunately, there are IRS penalty abatement options available to select candidates. Wondering if you could be one of them? Read on to find out!

IRS Penalty Abatement

Are you looking to find a way to avoid IRS penalties and interest charges? Let’s go over the main IRS penalty abatement options.

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First Time IRS Penalty Abatement

If you are current in your filings and have no penalties from the previous three years, you might be able to apply for first time IRS penalty abatement. Keep in mind though that a history of good behavior is not enough. To qualify you should also have paid or arranged to pay (through a payment plan) your tax debt. While not everyone is eligible for this IRS penalty abatement option, it is definitely one of the best.

IRS Penalty Abatement Due To Reasonable Cause

If you have failed to file your taxes or pay subsequent penalties, make sure to consider this IRS penalty abatement option. To get rid of your penalties through this method, you have to prove to the IRS that you had reasonable cause to fail to fulfill your obligations. According to the IRS, a reasonable cause can be a natural disaster, a major disturbance, serious illness, death of the taxpayer and immediate family, or inability to obtain records. If you think you are a candidate for this IRS penalty abatement option, make sure to gather evidence to support your case against the IRS.

Penalty Abatement Due To Statutory Exceptions

There’s one more condition under which the IRS might grant a taxpayer the abatement of penalties and interest. This can only happen if you have received an erroneous advice on your taxes in written form. If this is the case, penalty abatement is a real possibility.

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Your Best Shot At IRS Penalty Abatement

Tax debt forgiveness and IRS penalty abatement might sound too good to be true. However, under the right conditions and with the right help, this can be a real possibility. At the Law Offices of Nick Nemeth,PLLC, we have helped thousands of clients find relief through IRS penalty abatement. It’s advisable to get professional help to boost your chances of getting rid of or lowering the penalties and improving your standing with the IRS. Find out how to work your way out of your IRS tax problems by reaching out to our attorneys. Call us today for a free consultation at (972) 484-0829 or send us a message.