When you’ve gone beyond a reasonable amount of time to pay your taxes and they become long over due, the IRS will slap penalties and fines on your back taxes. This will increase the debt amount and further increase your total debt to the IRS. This is where penalty abatement comes in. Abatement is simply another word for “removing the penalties.” In the most common cases, FTF (Failure to File) or FTP (Failure to Pay) penalties require abatement because IRS assesses these penalties via an automated system.
We can help you fill out and complete the Form 843: Claim for Refund and Request for Abatement and attach your rationale and evidence to support your reasonable cause claim.
As mentioned, a lot of these penalties are almost automated and don’t often consider the condition of the tax payer. In cases of an appeal, an actual IRS personnel will hear the case and make an informed decision.
Keep in mind the statute of limitations for penalty abatement.
Tax payers can generally request for abatement of penalties within the normal refund statute of limitations which is typically 3 years from the date your tax return was filed or 2 years your paid the penalty. In the past, the IRS has sometimes allowed abatements past the refund statute expiration date. However, after having corrected this system error, most requests outside of this time frame are often rejected.
When we’re talking about Tax Resolution, a program you’ll hear a lot about
is an Offer in Compromise. This is one of the IRS’s popular tax resolution
programs and for a very good reason. Here’s all you need to know about
how an offer-in-compromise works