Penalty Abatement Relief
What is Penalty Abatement Relief?
What is Reasonable Cause?
Reasonable Cause, as defined by the IRS, is based on all facts and circumstances in your situation. It must be established that you followed all procedures to meet your tax obligations but due to certain circumstances, were unable to meet them. The IRS notes that financial hardship does not make you eligible for the reasonable cause waiver but the circumstances that led to the hardship may make you eligible.
Eligible causes include:
What is First Time Penalty Abatement (FTA)?
This type of penalty relief is meant to reward those who typically meet their tax requirements. It’s available to you if you typically follow tax procedures and obligations but for the first time, could not meet your tax obligation on a single return. You must not have received a penalty on the specific type of return within the past three years in order to be eligible for this waiver.
You Are Eligible for FTA if:
What is a Statutory Exception?
The IRS requires these elements for you to be eligible for this type of relief:
What About the Interest Caused By the Penalties?
If the IRS finds you eligible for any of these waivers, the interest charged because of the penalties will be reduced or removed by the IRS.
If you find yourself in danger of penalties from the IRS, you may be eligible for one of these penalty relief options from the IRS. It is best to speak with a tax professional about your options and what the best form of penalty relief would be for you.Give us a call today and we can help you decide which type of penalty relief best suits your situation. See more of our IRS problem resolution services.