| Back taxes, tax balance, unpaid taxes, all these among | | | | present to the IRS with sufficient evidence to support |
| others will cost taxpayer tax penalties. Disregard to | | | | a claim of inability to settle tax debts. Among the |
| settle this will eventually lead to doubling of penalties | | | | factors for abatement can be:o Bankruptcyo Health |
| and interests. In the end, there will be a more tax debt | | | | medical problems or terminal illness of a concern |
| amount to pay for a delinquent tax payer. However, | | | | taxpayer or a loved oneo Total destruction of |
| wait; there is an option from the tax due relief, the tax | | | | properties due to natural calamitieso Loss of |
| debt penalty abatement. | | | | accounting records |
| Tax penalty abatement is perhaps a song in every tax | | | | These are only among the few circumstances that a |
| debtor's ears. The thought that penalties will simply | | | | taxpayer may be in such a state. One or more of |
| vanish like magic, is very appealing. However, can this | | | | these can be the reasons for failing to settle tax debts |
| really be availed just like that? And why would IRS | | | | and hence asked for a tax debt relief. The least option |
| disregard penalties on tax obligations when these tax | | | | that IRS grants in this case are penalty abatement. |
| debtors are actually violating the laws? | | | | Tax dues, however, are not erased or forgotten by |
| Removal of tax penalties or penalty abatement is not | | | | IRS; perhaps a settlement is reached to resolve this. |
| something to be given away to every taxpayer that | | | | Tax penalty abatement is an easier option for IRS to |
| claims this. There are specific processes that IRS will | | | | implement as far as a tax due collection is concerned. |
| impose just for this tax due relief option is granted to a | | | | Because penalties are only a small fraction than a |
| taxpayer. In principle, and in practice, IRS will allow | | | | principal tax debt amount, so IRS can forego collecting |
| abatement when taxpayers' financial circumstance will | | | | this. However, a taxpayer should bear in mind that |
| prevent him/her from paying such. | | | | penalty abatement is just one small relief, what's |
| This is the question of taxpayers' ability to pay for the | | | | important is to avoid tax dues altogether. |
| penalty and the principal tax due. Taxpayer needs to | | | | |