| Many would agree it is difficult to settle IRS tax debt in | | | | Do I qualify? This is the million dollar question that every |
| terms of the original balance you owe then it is to | | | | taxpayer in this situation asks. Simply put, penalty |
| settle penalties. Going through the penalty abatement | | | | abatement is assessed on a case by case basis. In |
| process with the IRS is not quick and simple. That | | | | other words, your case will be reviewed by the proper |
| being said, you may be able to get your penalties | | | | individuals within the IRS. If you have reasonable cause |
| abated if you meet the proper requirements and file | | | | for requesting penalty abatement you have a chance |
| the proper paperwork. Generally speaking, penalty | | | | to "win." Of course, it is your job to sell your story and |
| abatement relieves you from some (or in many cases | | | | show that your cause is reasonable. |
| all) of the penalties you have accrued from back | | | | There are many circumstances in which penalty |
| taxes. For those who can explain why they have not | | | | abatement is usually granted to the taxpayer: |
| been able to pay their taxes the penalty abatement | | | | 1. If your records were destroyed in a natural disaster. |
| process may work in their favor. | | | | 2. If a natural disaster made it difficult for you to pay |
| If you wish to get penalty abatement you must | | | | your taxes on time. |
| persuade the IRS that there was a good reason as to | | | | 3. If your business was targeted in a crime such as |
| why you did not pay your taxes. They are willing to | | | | embezzlement. |
| listen, but you must have a reasonable and believable | | | | In the end, expect the IRS to get in touch with you to |
| case. | | | | determine just where you stand. They will want to |
| There are three common ways to present your case | | | | know if this is simply an attempt to get out of paying |
| for penalty abatement to the IRS: | | | | penalties, or if you have a serious issue that caused |
| 1. A written statement is most common. This allows | | | | you to fall behind. Be sure to present your case in the |
| you to state your case in a short letter to the IRS. | | | | best possible light, and answer all questions that are |
| 2. If you do not think a written statement will work you | | | | asked of you. If you take the proper steps and have a |
| have the right to request a verbal interview. | | | | case that hits home with the IRS there is a very good |
| 3. You can file Form 843 to present a short version of | | | | chance that you will be granted penalty abatement. If |
| your case, as well as the reasons why you feel you | | | | you smart, find a great tax relief firm to help you. |
| qualify for penalty abatement. | | | | |