How to Remove IRS Penalties & Abatement
You may have paid your federal taxes late, and are now being charged hefty penalties by the Internal Revenue Service. If you don't feel that you should be held liable for the tax penalties, you can apply to the IRS for a tax penalty abatement. However, you must be able to show reasonable cause to request an abatement--such as physical or mental illness, death of a family member, fire, theft, unemployment or another plausible reason that caused you serious financial hardship. Getting rid of your tax penalties will lift a huge financial burden off you, since they can make up 25 percent of your total tax debt.
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Instructions
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Send a written petition to the IRS explaining your reasons for requesting a tax penalty abatement. Attach a photocopy of the original IRS notice listing your tax penalties. Include any supporting documentation that help make a strong case for why you should have your tax penalties removed. Mail the written petition and supporting documents to the address listed on the penalty assessment letter that you received from the IRS.
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Request an in-person interview with an IRS agent at your local IRS office to plead your case for a tax penalty abatement. Explain to the IRS agent why you quality for a tax penalty abatement. Bring along any supporting documents and a copy of the original IRS tax notice listing your penalties.
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Go to the IRS website at www.irs.gov. Download the tax abatement form, which is Form 843. Follow the instructions for filling out the form, and make sure to include all supporting materials that show why you should receive a tax penalty abatement. Mail to the IRS at the address listed on the form.
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File an offer in compromise with the IRS, which is a procedure for negotiating your IRS tax bill, including all penalties. Go to the IRS website and download IRS Form 656. Fill out the form carefully and attach all supportive documentation that the IRS requests.
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Tips & Warnings
Make sure to make copies of all documents that you send the IRS.
References
Resources
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