Have you been hit with IRS penalties and interest? If your standing debt with the IRS has started to cause you trouble, it’s time to act. Especially if your debt is a result of what the IRS deems a reasonable cause. Seeking IRS penalty abatement and debt relief sooner, rather than later, will boost your chances of successfully finding a favorable resolution.
Reasonable Cause IRS Penalty Abatement
One of the common types of IRS penalty abatement is known as Reasonable Cause Abatement. This type of abatement of penalties and interest is granted only when you can prove to the IRS that you had a good reason for not fulfilling your tax filing or payment obligation.
To determine the legitimacy of a reason behind non-compliance, each case is evaluated on a one-on-one basis. The IRS not only takes into account the reported reason for not filing or paying, but also how it individually affected your ability to do so. This involves an evaluation of supplied proof, financial history, and general background.
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What Qualifies As Reasonable Cause?
To qualify for reasonable cause penalty abatement from the IRS, you need to be able to prove your case. This means showing you had a good enough reason to not file or pay your taxes. Acceptable reasons involve trying situations that prevent you from fulfilling and are also out of your control.
Some legitimate examples that qualify for IRS reasonable cause penalty abatement are:
- Death of a close family member
- Serving jail time
- Being secluded in a rehab facility
- Natural disasters in which your safety or records were compromised
- Being held hostage
- Being kept from your duties due to disturbances such as strikes, riots, etc.
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How To Make Your Case For IRS Penalty Abatement
Supplying pieces of evidence like written documents can help build a better case. Additionally, the IRS can require you to provide more information on your background and financial standing. To get rid of any penalties and interest, the IRS will pay close attention to your tax history. If you’ve missed payments or filing your taxes before, this can affect your chances at an abatement.
In Conclusion
The IRS is understanding of serious circumstances, especially when they’re out of your control. If you missed out on your taxpayer obligations but have reasonable cause for doing so, you have a good chance at IRS penalty abatement. To optimize your chances at IRS penalty abatement, work with a tax law attorney from The Law Offices of Nick Nemeth, PLLC. Our expertise in penalty abatement goes a long way in making the process easy and simple. Contact us today for a free consultation by calling us at (972) 426-2553. You can also email us at jamie@myIRSteam.com to get more information on IRS debt forgiveness.