The IRS’s ability to assess penalties, and the parameters for doing so, are written into tax laws. In addition to being assessed, penalties also accrue interest until the tax balance is paid in full. When you have a high tax balance, the rate at which interest and penalties accrue, and compound can be crippling.
What exactly is a penalty abatement and what does it mean for you? Think of penalty abatement as a way to ask the IRS for a break on the penalties that have been assessed against you. If granted, penalty abatement can be much like getting discount on a big bill.
There are guidelines for how and when to apply for penalty abatement relief. This generally requires a specific form to be prepared and submitted with the legal arguments and proof to support the positions taken for your request for penalty abatement relief. The IRS will then review your request for relief and determine whether to grant a full, partial, or no abatement at all.
The IRS has legal parameters they can consider when reviewing requests for penalty abatement relief. Generally, they are willing to consider genuine hardships, or other situations detailed in the tax laws, that can be supported with documentation to provide relief where appropriate.
Not everyone will qualify for penalty abatement relief and it is important to understand the tax laws, how they apply to your situation, and have thorough documentation to support your positions. Without all of these components, the likelihood of your request for penalty abatement being granted will be slim.
Dealing with the IRS and tax problems can be incredibly stressful. Understanding the rules and proper procedures can make the process smoother and increase the likelihood of success.
For help navigating your tax problems and negotiating a resolution, contact the experienced tax team at the Business Law Group. Our team is ready to help you by taking the burden of dealing with the IRS and helping you navigate your tax problem to find a resolution tailored to your situation. Call us at (719) 355-8840 or email info@businesslawgroup.us to get started today.
