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Abatement of Interest and Penalties

A Penalty Abatement can be a taxpayers friend when a tremendous portion or small portion of the taxpayers debt consists of penalties and interest, when penalty abatement is engaged the taxpayer will be able to remove all penalties and interest that was applied by the IRS. In order to qualify for an abatement of penalties, you must describe to the IRS a very reasonable hardship that you had to endure and an abatement of penalties and interest is all but a natural remedy. Examples of possible hardships are, if your house was hit by a tornado, you were in hurricane Katrina, you were in the middle of a civil war in Africa, and you almost died battling the aids virus. On the other hand if your excuse is, Oh it just slipped my mind to file my taxes!, that will not work.

Applying for A Penalty Abatement

Here are several ways to file for penalty abatement. The first is sending in an appeal to the IRS with a description stating why you think an abatement of interest and penalties is justified. Next if your written explanation is ineffective the next route would be a request for a physical interview, to further explain why you should qualify for an abatement of penalties and interest. Lastly you can file for a refund and request an abatement form from the IRS (IRS Form 843). You should explain yourself fully and provide as much detail as possible.