If you believe you should not be responsible for paying penalties incurred on your account, the abatement process is where you need to start. If you apply for tax penalty abatement and it is accepted, you must then pay your tax liability in full.
Are you ready to do so?
Along with the above, you should realize that abatement is not 100 percent guaranteed. You need to prove to the IRS that you should not be responsible for the penalties. Some of the reasons that you may not be liable include: divorce, destruction of tax records, time in prison, major illness, bad advice from the IRS or a tax professional, extended period of unemployment, and death of an immediate family member.
What do you think about penalty abatement? If you are ready to move forward, it is good to know that the process for doing so is relatively simple. There are several ways to file for penalty abatement including: sending a written letter to the IRS stating why you think you qualify; requesting an oral interview in which you can talk about your situation and why you are a candidate for abatement; complete IRS Form 843 and mail it to the IRS.
It is simple to understand the ins and outs of tax penalty abatement. With this, you are asking for penalties and interest to be removed from your account. This is a great idea, but only if you are able to pay the rest of your liability in full.
Those who have questions about tax penalty abatement or need help should hire a professional. Not only can a professional explain the finer details, but he can also help you apply. This should help increase your chance of having your request accepted.
Every year, many people take advantage of tax penalty abatement. In short, this means that they do not have to pay their entire tax bill. At the very least, you should consider abatement as well as the pros and cons that are associated with it. This will help you make a sound decision in the end.