How to Appeal a Late Tax Filing Penalty
Each taxpayer is expected to have his or her return filed and tax paid on or before April 15. If the return is filed late, the government will assess a penalty of 5 percent for each month the return is late, not to exceed 25 percent of the total tax due. Fortunately, the IRS does allow for an appeal of a late filing tax penalty if the taxpayer meets certain criteria.
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Instructions
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How to Appeal
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Complete IRS Form 843 to request an abatement of your late filing penalty. If you have a history of filing your returns on time, the IRS will usually grant you a one-time abatement. Form 843 can also be used to request an abatement of penalty due to reasonable cause. If you request a reasonable cause abatement, you should include a written narrative with Form 843 which explains the specific circumstance which prevented you from filing your return on time. Your explanation must thoroughly outline the circumstance which prevented you from filing the return and how you handled the circumstance. In determining whether the taxpayer's appeal will be granted, the IRS will consider the taxpayer's filing history, the length of time between the filing deadline and the date the return was received and the specific circumstances.
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Call the IRS customer service line at 1-800-829-1040 to request an abatement of your failure to file penalty. The customer service representative will use an automated software program to determine whether you are eligible to receive an abatement. He or she will ask you a series of questions regarding the situation which prevented you from filing on time and enter your answers into their online program. The online assessment program will make the final determination as to whether the abatement will be granted.
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Write to your local IRS processing center to request an appeal of the penalty assessment. Once your letter is received, the IRS will assign a customer service representative to make a determination as to whether the failure to file penalty will be removed.
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Tips & Warnings
Forgetfulness is not considered a reasonable cause for appeal. In addition, delegating the filing of your taxes to another person does not meet the criteria for abatement of the failure to file penalty. Ultimately, the IRS holds the taxpayer solely responsible for the filing of the return. The only exceptions to this are cases where severe illness or death are involved.
