Question:
I’ve been getting threatening notices from the IRS recently. I think I can pay the taxes due, but what can I do about these ridiculous penalties and interest charges? Does the IRS waive penalties?
Answer:
There are several different ways the IRS removes or reduces penalties. One option is called First Time Penalty Abatement (FTA), but you must have a “clean record” for the previous 3 years prior to the year you’re requesting relief on.
The other way to obtain abatement is to show “Reasonable Cause”. Reasonable cause is basically something that prevents you from filing and paying your taxes on time. The IRS lists some nine different reasonable cause defenses you can apply under. One defense argument, for example, is: death, serious illness, or unavoidable absence. If you failed to file or pay on time due to the death, serious illness, or unavoidable absence (yourself or immediate family members), and the issue was addressed in a reasonable amount of time after it happened, then you may qualify for abatement.
You’ll need to show proof in writing of the serious illness, death, or unavoidable absence as part of making a formal request by letter to the IRS, but if you qualify you may be able to get a full or partial abatement, meaning waiver, of your tax penalties. Call us to see if this or any of the other eight arguments might apply to you.
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At Beacon Tax Advocates, we are experts at navigating the IRS maze and will customize a resolution plan to fit your individual needs and permanently solve your IRS problems. You’ll never have to speak or meet with the IRS once we’re in the picture! Call us today at 207-502-7181 for a free confidential consultation.
