Penalty Abatement – Reducing Your Tax Penalties Will Reduce Your Tax Debt

If an IRS Penalty Abatement request is worth making – AND AN IRS PENALTY ABATEMENT IS ALWAYS WORTH MAKING – an IRS Penalty Abatement is worth making correctly.

Are you eligible to reduce yours through a Penalty Abatement?

Contact Flat Fee Tax Service, Inc. and find out if you have reasonable cause to eliminate your IRS penalties.

 

Your IRS Penalty Abatement Reduction Hotline:

1 – 800 – 589 – 3078

http://www.flatfeetaxservice.us

The penalties and interest that the IRS will add to your tax debt will be incredible. You can expect your tax debt to double in approximately 3 years.

Taxpayers and many tax representatives seem to think that sending a simple letter to the IRS requesting that the IRS Penalties and Interest be abated will suffice. The truth is that the IRS receives millions of these simple IRS Penalty and Interest relief request letters every year and the great majority will be summarily rejected.

The IRS receives so many sub-par requests for IRS Tax Relief, an Application / Petition that is done with thought and thoroughness stands out in a positive way.

The purpose of IRS Penalties is to punish you, the taxpayer, for failing to comply and to send a message to other taxpayers that compliance will be strictly enforced. If neither of these purposes is furthered by the imposition of an IRS tax penalty, the IRS should not assess it. Furthermore, for most types of IRS penalties, if the taxpayer has Reasonable Cause for his failure to comply, the IRS penalty should not be assessed.

The IRS lists numerous situations in which Penalties and Interest can be abated with “reasonable cause” based on your own unique situation.

Reasonable Cause – The IRS considers Reasonable Cause for Penalty Abatement to be:

  • Ignorance of the Law (you must demonstrate you made a reasonable effort to learn the law) Error or Mistake was Made, but you must still show due diligence, ordinary business care and prudence” had been exercised.
  • Forgetfulness, but you must still show “ordinary business care and prudence”. Serious Illness, Death, or Unavoidable Absence.
  • Unable to Obtain Records
  • Incorrect Advice from a competent tax professional
  • Incorrect Advice directly from the IRS, written or oral
  • Fire, Casualty, Natural Disaster, Other Disturbance

The Internal Revenue Manual goes on to say that ANY REASON will be accepted as Reasonable Cause if it can be shown that the taxpayer exercised ordinary business care and prudence and, despite that, was still not able to comply with their tax obligations.

An IRS Penalty Abatement Petition gives your Flat Fee Tax Service Attorneys the opportunity to plead your case to the IRS. Unlike most other claims for Tax Relief, a Penalty Abatement puts a very human face on your IRS case, which certainly can work for your best interest. Decisions are made by the IRS on an individual, case-by-case basis, which is very encouraging for you.

Have you had any of the below life experiences affect your life in an adverse manner?

Divorce?
Medical Reasons?
Substance Abuse?
Loss of Income?
Death in the Family?
Failed Business?
Something happened to you.

In fact, IRS guidelines generously suggest that a Penalty Abatement should be “generally granted when the taxpayer exercises ordinary business care and prudence” in trying to pay their back taxes.

 “Reasonable Cause” is a very subjective matter and the only way to definitively determine whether or not a failure to comply was willful or a result of extenuating circumstances is for the IRS to conduct a thorough investigation of all the facts and circumstances giving rise to the failure.

No matter how well you state your case, the IRS Appeals Officer assigned to your IRS Penalty Abatement request will have some hard questions for you. The IRS Revenue Officer probably will look at your history of paying your IRS tax. The IRS will ask, “Is this just another attempt to get out of paying?” That is a question that needs to be overcome.

If you submit a Penalty Abatement petition and it is denied, you cannot make a request on the same grounds again. This all the more reason to have an accomplished professional prepare your IRS Penalty Abatement.

In fact, IRS guidelines generously suggest that a Penalty Abatement should be “generally granted when the taxpayer exercises ordinary business care and prudence” in trying to pay their back taxes.

The following list is taken from the IRM or Internal Revenue Manual that gives the guidelines of what IRS agents are instructed to look at when considering penalty abatement:

  • What are the events that happened, when did it happen, and why did these events prevent you from complying with the tax law?
  • How were your other affairs handled during this time? Did the you (or does it appear) single out the IRS not to be but paid other creditors? What steps were taken to try and mitigate your circumstances? Ordinary business care and prudence is closely looked at here.
  • Is there a direct “timeline” correlation between what happened and the taxes being file late or not paid?
  • Is there a history of filing and or paying late? The IRS is going to look at your  history; repeat offenders, have a tougher job convincing the IRS that this was not intentional.
  • Were the circumstances “beyond the control of the taxpayer” truly unavoidable, and could not be anticipated? If so, this generally establishes reasonable cause.
  • Documentation will be the bulwark of your case. Provide as much proof of what you are arguing as possible. The more  evidence you produce the better the chances for relief.

Typically, a petition is a formally structured letter with an introduction, the request for penalty relief under which relief program(s).

This would be followed by a Statement of the facts surrounding the case demonstrating the “reasonable cause” and ” ordinary business care” and as much documentation of the facts that you can muster.

Finally any legal or code related facts that would bolster your claim. Remember this is not a court case so there are no precedents. Your expectations of success will be directly related to the experience of the tax professional who has prepared and shepherd your Penalty Abatement. That is the reason why Flat Fee Tax Service believes in this statement:

“If an IRS Penalty Abatement request is worth making – AND A PENALTY ABATEMENT IS ALWAYS WORTH MAKING – a Penalty Abatement is worth making correctly”.

Your “reduce my IRS Tax Debt” Hotline: 

1 – 800 – 589 – 3078

Visit Our Websites:

https://www.thebestirshelp.com

http://www.flatfeetaxservice.us

https://www.facebook.com/thebestirshelp

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