Tax Penalty Relief
The IRS imposes penalties on taxpayers that do not comply with the requirements of the tax law. However, the IRS is authorized to reduce or eliminate the penalties imposed in specified circumstances.
Other People Are Reading
-
Reasonable Cause
-
The taxpayer can provide the IRS with a written statement setting forth reasons for the noncompliance that gave rise to the penalty. If the IRS is satisfied that you had reasonable cause, accrued penalties will be reduced or waived.
Erroneous IRS Advice
-
Penalties can be waived when a taxpayer initially relies on written advice from the IRS and is later informed it was the wrong course of action. To receive any relief, you must have written to the IRS requesting the advice and provided complete and accurate information. Furthermore, the IRS's suggested course of action must have been followed precisely.
-
Offer in Compromise
-
When a taxpayer will suffer an economic hardship if required to make full payment of a penalty incurred, an Offer in Compromise may be submitted to the IRS to reduce the amount of penalties due. In evaluating a taxpayer's offer, the IRS will consider your ability to pay the full penalty and the probability it can collect an unreduced balance from you.
-
