Penalty abatement refers to the elimination of penalties assessed by the IRS for not filing or paying taxes on time, while penalty adjustment refers to altering or reducing the amount of any penalty assessed. If you are facing penalties and interest assessed by the IRS and believe there is reasonable cause for the IRS to eliminate or adjust those penalties and interest, we can help.
In some cases, penalties and interest charges on outstanding tax obligations can be rather significant. Whether the amounts are large or small, there is often reasonable cause for negotiating with the IRS to get the penalties removed or reduced. In fact, about one-third of all tax penalties assessed by the IRS are eventually removed.
Determining Eligibility For Penalty Abatement or Adjustment
There are a number of reasons why the IRS may agree to reduce or remove penalties assessed. These include:
- Reasonable Cause
- Statutory Exceptions
- Administrative Waivers
- Correction in Service Error
Some situations that may fall under reasonable cause include:
- Mailing tax returns and/or payments on time, but the documents or payment do not arrive on time due to the incorrect amount of postage or writing the wrong address on the envelope.
- The destruction of records by a catastrophe, such as a fire, flood or natural disaster.
- A death or serious illness in the family.
For More Information About Penalty Abatements and Adjustments, Contact Us Today!
Call People’s Tax Relief for a free, no-obligation tax consultation at 866-788-8069 or fill out the form on the side of this page and one of our experienced tax negotiation specialists will contact you. During this consultation, we will help you determine if you may be eligible for a penalty abatement or adjustment, and if so, will help you negotiate with the IRS to have penalties and/or interest removed or reduced.