Whether you made an honest mistake or extreme circumstances led to a debt you simply couldn't pay, penalties and interest are often an undeserved punishment for owing the IRS. Fortunately, there are ways to alleviate the penalties and interest that are making your tax debt impossible to pay.
Remove an Income Tax Penalty with IRS Penalty Abatement by proving Reasonable Cause:
The IRS will allow you to Remove IRS Penalties and make an IRS payment for one of the following reasons.
-IRS made and error. The IRS sent you an incorrect refund or wrongfully charged you with a debt before you even made an IRS payment.
-The IRS delayed. If you received a "30-Days" Notice of Demand to make an IRS Payment late, the penalties that accrued for the 60 days could be abated removed with IRS Penalty Abatement. Basically, you can't be faulted for failing to make your intitial IRS payment if the IRS didn't notify you that the IRS Payment was due.
-No Notice. The IRS did not send you notice to make an IRS Payment before applying IRS Penalties and Interest.
-Natural Disaster. If a Natural Disaster caused you to file your taxes late, caused you to lose your tax information, or caused you to miss making an IRS payment, you're a candidate for IRS Penalty Abatement.
3 Steps To Remove an Income Tax Penalty from your Tax Debt
Getting a penalty abatement is easier said than done. Read the following steps before you start.
-Get the Proof: Gather all the documents that support your Reasonable Cause for not making a timely IRS Payment.
-Contact the IRS: Contact the IRS to let them know you want to make an IRS Payment. Also, let them know you want to apply for the IRS Penalty Abatement service and explain your Reasonable Cause.
-Request Abatement: File "Form 843 Claim for Refund and Request for Abatement." This is the Official IRS Penalty Abatement Form that will allow you to Remove your IRS Penalties.
Special Cases: The IRS is very picky about who they allow to apply for IRS Penalty Abatement. You need substantial evidence to proves why you shouldn't have to pay the Income Tax Penalty. The IRS won't accept a lame excuse. Additionally, you still need to make an IRS Payment even after they Remove IRS Penalties from your account. If you feel a little overwhelemed by the whole Income Tax Penalty issue, consult with a Tax Professional. They'll be able to help you remove IRS Penalties and apply for IRS Penalty Abatement with ease.