Being on the wrong side of the IRS can translate into sleepless nights for those at the receiving end. While the IRS has more than a few provisions for taxpayers struggling to meet their tax obligations, in a lot of cases there is nothing people can do to overcome the obstacles they are facing, which can result in IRS penalties. Even in such cases, the IRS keeps its doors open. The Federal authority allows taxpayers to request removal of penalties, provided they meet certain preconditions. If their request is rejected, they might be eligible to request an Appeals conference or hearing. The question is, when can you file an appeal against IRS penalties?
Primary Conditions
A taxpayer can file an appeal against IRS penalties only if all of the following are met:
- The taxpayer has received a IRS letter stating that they have failed to file and/or pay a penalty.
- The taxpayer has already sent a letter requesting the IRS to remove the penalty imposed on their account.
- The penalty removal request has been turned down by the IRS, and the taxpayer has received a letter confirming the rejection.
Related Blog Post: Notable Dos and Don’ts When Applying for IRS Penalty Abatement
Eligibility Criteria
A taxpayer can appeal against an IRS penalty if they were unable to file or pay the penalty due to a factor beyond their control. The IRS has a number of scenarios it classifies as “reasonable causes”. These include:
- Death, a serious illness, or an unavoidable absence of the taxpayer or an immediate family member.
- Natural disaster, casualty fire, or other such mishaps
- Lost or missing records of the taxpayer
- A human error caused the penalty
- The penalty resulted from an erroneous advice
If any of the aforementioned circumstances apply to a taxpayer, they may meet the criteria for a reasonable cause as defined by the IRS. Having said that, in all these situations, the IRS needs a detailed description and explanation of the scenario to assess whether or not the reason can actually be considered as a “reasonable cause”.
Related Blog Post: Answering 5 FAQS about IRS Penalty Abatement
Filing an Appeal
Filing an appeal against an IRS penalty can be a tricky maze for anyone without formal knowledge or expertise with the Tax Code and its finer lines. That is the reason it is advisable to hire an IRS tax attorney with proven expertise in the field, rather than taking matters in your own hands. That is precisely what you can expect when you choose the Law Offices of Nick Nemeth to help you out of your IRS problems. Over the years, we have helped thousands of taxpayers find their way out of all sorts of IRS tax-related problems, and the next success story could be yours.
Contact us today for a completely confidential no-obligation consultation. Simply call (972) 426-2553 or fill out our contact form and we’ll get back to you as soon as possible.