What is a Penalty Abatement?
In the simplest terms, a Penalty Abatement is the removal of penalties levied against your tax bill.
These penalties can be placed on your account for a number of reasons, like failing to file or failure to pay your taxes on time. You may qualify for relief from these penalties, however.
For example, if it’s clear that you have made an effort to comply with the requirements set out to you by the IRS but were unable to due to circumstances outside of your control.
When Does a Penalty Abatement Come Into Play?
If you or a hired professional have assessed your penalties and deemed them to be unfair or simply unpayable you can request an abatement or exclusion form penalties when filing your tax return.
However, it is worth noting that penalties must meet certain criteria to be considered for abatement or relief, these include:
- Failing to file a tax return
- Failing to deposit certain taxes
- Failing to pay on time
Your file will need to be reviewed by the Internal Revenue Service (IRS) to determine whether or not you will be eligible for Penalty Abatement.
Do I Need A Professional To Help?
Hiring a professional to help you determine whether or not it is worth applying for Penalty Abatement is a good investment. As experts in our field, we bring a mountain of knowledge and experience to the table that allows you to take the guesswork out of the process.
We can also help you appeal if you have previously applied for a Penalty Abatement and been denied.
Extra Notes:
It is important to note that the IRS does not offer abatement of interest on your account. Interest is charged by law so will continue to be applied to your account until the full amount is paid. However, interest will be reduced if your penalties are abated and this will automatically be applied to your account upon successful application for abatement.
Working With TaxFinders:
If you’re ready to head on the path towards financial freedom, give us a call!
English
Spanish