When you file late or if you intentionally file a falsified tax return, the IRS is going to hit you with fines, interests, and penalties big time. You are going to be subjected to so many fines it may be unimaginable for you to conceive. If you need assistance or information about tax penalty abatement or how the process works then consulting with a tax attorney is probably a very good idea. Going through the abatement process allows your tax attorney to take your case to the IRS on your behalf and to request an opportunity to plead your situation.
How to file an appeal for penalty abatement
By making an appeal for penalty abatement, you are personalizing this matter and giving credence to your cause. This can prove to be fruitful and work to your advantage in many ways. If the appeal process works, you may be alleviated of some or all of your tax penalties. This can be very beneficial to people who are unable to pay the fines and interest. Your tax professional will plead your situation and provide you with the best negotiation possible. It is best not to attempt to do this alone because you may only get one chance and you don’t want to mess it up.
Tax penalties are a very large reality when dealing with the IRS, it was estimated that as of 2005, the penalties were around $16 billion dollars and the amount is climbing yearly. The IRS does whatever is necessary to collect on back taxes, so if you can’t pay then you need to request your tax attorney to request penalty abatement. This may be your only chance to work out your tax problems once and for all.
Are you eligible for penalty abatement hearing?
If your tax professional requests a hearing to determine your eligibility for penalty abatement, then it means the IRS is willing to hear your case and reconsider the matter. There are three ways that your tax professional can request an abatement hearing; to submit a written request, through a verbal interview between your tax attorney and the IRS, and finally through Form 843. Whichever avenue is chosen, your tax professional will provide information to the IRS as to why your case should be reconsidered. If you’re successful then the penalties and interest will be reduced or forgiven. This is why it is very important for you to have the best representation possible.
The IRS goes through penalty abatement with tax payers on a case-by-case basis. This is encouraging and “reasonable cause” can be open for interpretation. According to the IRS, abatement should be “generally granted when tax payer exercises ordinary business care and prudence”, when attempting to pay back outstanding tax debts, fines and interest. Did you make a genuine effort to repay the taxes and find a solution to your problem? When you first ran into this problem, did you contact the IRS in a timely manner? Did you attempt to make a payment arrangement or have you been making repayments on an installment basis? Remember that with any problem, you will need to prove yourself through a paper trail. So it’s very important that you remember to keep all your tax records.
Facing the IRS
No matter what your situation may be with the guidance of a qualified tax attorney, you can face the IRS confidently. The professional will face a penalty abatement hearing with the IRS, knowing all of your information and present the best case possible on your behalf. The tax attorney will present your case objectively and from every angle and leave no question unanswered. When finished and if their arguments are persuasive, you will likely be granted the abatement request.