Abatement of Penalties & Interest
IRS tax penalties and interest can make up the bulk of one’s delinquent tax bill and often are the main reason for an unmanageable tax problem. However, several IRS provisions can provide taxpayers justice. The most common approvals for penalty abatement include:
1. First-Time Penalty Abatement
2. Reasonable Cause
3. Correction of Service Errors
4. Administrative Wavers
5. Statutory Exceptions – Under reasonable cause, the IRS will thoroughly assess the initial situation that resulted in penalties. Reasonable cause relief will be granted on the basis of if the taxpayer exercised ordinary business care and prudence in determining their tax obligations but was unable to comply with those obligations.
6. Unable to Obtain Records
7. Serious Illness
8. Loss of Household Provider
9. Incorrect Advice from Tax Advisor
10. Incorrect Advice from Service
11. Natural Disasters
12. Service Error – If you qualify, BTA can assist you in getting some or all your penalties and interest removed, or even obtaining refunds directly from the IRS.
