Penalty Removal
Penalties are often imposed but also frequently abated in a proper settlement negotiation
The IRS Penalty Abatement Program
The IRS can remove (abate) or reduce penalties for “reasonable cause.” Interest, on the other hand, is rarely abated or reduced. The IRS Manual (IRS Policy Statement P-2-7) states:
Any sound reason advanced by a taxpayer as the cause for delay in filing a return, making deposits … or paying tax when due will be carefully analyzed…Examples of…reasonable cause:
- Death or serious illness of the taxpayer…or immediate family.
- Unavoidable absence of the taxpayer.
- Destruction by fire or other casualty of the taxpayer’s place of business or records.
- Taxpayer was unable to determine amount of deposit of tax due for reasons beyond taxpayer’s control.
- Taxpayer’s ability to make deposits or payments has been materially impaired by civil disturbances.
- Lack of funds is an acceptable reasonable cause for failure to pay any tax or make a deposit…provided it can be demonstrated lack of funds occurred despite the exercise of ordinary business care and prudence.
- Other explanations may be acceptable…Acceptable explanations of delinquency are not limited…Any reason…establishing that the taxpayer exercised ordinary business care and prudence but was nevertheless unable to comply within the prescribed time will be accepted as reasonable cause.
United Tax Group can provide penalty abatement help by removing penalties the IRS has assessed you with and lower your tax debt.
Contact the Tax Settlement Professionals at United Tax Group TODAY! (877) 829-3703