| If you do not pay your taxes owed on time then you | | | | provided must be genuine. The decision will be made |
| will be charged with penalties and interest. Even though | | | | by the IRS according to their guidelines. Penalty |
| the interest rate is not that high, the amount payable as | | | | abatement can be the best form of tax relief for |
| tax will increase day by day. Ultimately a situation will | | | | individuals to eliminate penalties that have added up to |
| be reached such that the amount payable as tax will | | | | a significant amount. In certain situations, IRS has even |
| be very large and you couldn't pay that much amount. | | | | returned the payment made by the taxpayer as tax. It |
| In a situation where you have a legitimate reason for | | | | also gives a chance for a taxpayer to decrease the |
| late payment of taxes or unpaid taxes, you can make | | | | amount of interest to be paid as tax. |
| use of the penalty abatement for getting tax relief. | | | | Penalty abatement can be applied for in three ways. It |
| With the help of penalty abatement, you will be either | | | | can be done through written, verbal or Form 843. But |
| forgiven for the full tax penalty amount or a part of | | | | you must have a strong reason supported by valuable |
| the tax amount. In certain cases, IRS removes the full | | | | proofs to get tax relief through this method. The |
| charges made on the person and he/she will be | | | | situations under which you can apply for penalty |
| completely free from the penalty. | | | | abatement includes natural disaster, long term |
| In order to get the benefits of penalty abatement the | | | | unemployment, serious health problems, misplaced |
| taxpayer must produce the necessary documents to | | | | financial records, mistake from the side of IRS, death in |
| convince the IRS that there is a legitimate reason why | | | | the family, or any other reason that would have |
| you should not be held liable for the penalties owed. | | | | prevented you from filing or not paying the taxes |
| You will receive tax relief only if the IRS is convinced | | | | owed. |
| with the documents produced. The reason or reasons | | | | |