Penalty Abatement
Besides the Offer in Compromise, there is another, very effective program for reduction of an outstanding tax debt. If there were circumstances beyond your control that prevented you from paying your tax debt and led to delinquency, we can challenge the penalties and interest that have built up and negotiate them down. Relief from penalties falls into four separate categories. They are:
- Reasonable Cause - Mistake made by the taxpayer, ignorance of law, death, serious illness, unavoidable absence.
- Statutory Exceptions - Simple or complex legislative tax code changes.
- Administrative Waivers Undue hardship, fire, flood, natural disaster, bad legal/tax advice.
- Correction of Service Error - Mistake made by the IRS. Source IRS.
Because relief from accrued penalties and interest is based more on stated representations rather than financial hardship, terms for a successful penalty abatement are very specific. More so than any other, this program involves a great deal of skill to successfully navigate the IRS protocol and bring resolution. If applied for correctly and effectively, results are substantial; savings are usually thousands of dollars for the average taxpayer. Our staff of tax professionals has years of experience and know the secrets of this program. When you call, your personal tax strategist will cover the intricate details of a penalty abatement, accurately explaining why you would or wouldn't be a candidate for this relief.