IRS Penalty Abatement Letter

Are you shocked by the stiff penalty amount? The IRS assesses different types of penalties and interest on unpaid back taxes.

If you have not paid your entire federal taxes, or have not reported your entire income, or filed your returns late then the IRS - Internal Revenue Service will tack on excessive penalties and interest. The IRS gives you an option whereby these penalties can be forgiven or abated. Though you are still held responsible for any outstanding taxes you owe, the Internal Revenue Service can possibly forgive your penalties on the unpaid taxes if you make a request for abatement that is acceptable.

When can the Internal Revenue Service abate your tax penalties?

Your request for penalty abatement can only be granted by the IRS if you can prove “reasonable cause” or good reasons for not paying your past due taxes in full.

What are the various reasons for to which your delinquent taxes can be abated?

The IRS may grant your request of abatement for the following reasons:

  • Due to a family member’s death.
  • Serious or chronic illness of you or any of your family members.
  • Severe environmental disturbances such as a flood or a hurricane.
  • The IRS or your tax advisor has given you incorrect advice.
  • Not being able to pay though you tried to take ordinary care in your business operations.
  • Uncontrollable reasons at your end that did not let you determine the due taxes.
  • Any other reasons though you had tried your best using an ordinary business care.
What is the process?

If you could not pay your delinquent taxes due to any of the reasons mentioned above, you could be a good candidate for penalty abatement by just asking the Internal Revenue Service for it. You need to make a “request for abatement” by writing a ‘penalty abatement request letter’ to the Internal Revenue Service. Along with it, you have to also enclose a copy of the IRS’s notice and any other written documentation to support the reasons for which you are making the penalty abatement request. You also need to complete IRS Form 843 (request for abatement and claim for refund) and enclose it with your request letter. Moreover, if you can do so, you may send your delinquent taxes’ payment (though not mandatory) while you are sending your penalty abatement request letter to the Internal Revenue Service.

We assist our clients in professionally drafting penalty abatement letters, by stating the facts, tax laws, and argument to accept the abatement. Call us today at 1-877-78TAXES [1-877-788-2937].