How to Get Penalties and Interest Forgiven
Penalties Can Double or Triple What You Owe. If the penalties can be eliminated, the tax debt is more manageable. Over 145 penalties exist within the IRS code. But the most common penalties are imposed for (A) not paying on time and (B) not filing on time. For those who owe the IRS back income taxes, penalties are a big chunk of it.
The IRS uses the terms abatement or abate when referring to forgiving penalties.
In order to eliminate IRS penalties, the taxpayer must show good Faith and reasonable Cause. The Internal Revenue Penalty Handbook requires “good faith and “reasonable cause” in order for the IRS to abate penalties. Good faith means your actions, even in error, were not intended to break the law and you possessed a sincere belief you were acting properly. Reasonable cause means that, by applying common sense and considering existing circumstances, you had good reason to act or for your failure to act.
Read the library article which provides more details in how to get penalties cancelled. The article also provides specific examples of what constitutes good faith and reasonable cause.
Please call Michael Mack, day or night, at:
- 414-771-9200 (WI)
- 312-584-1440 (IL)
- 813-535-8080 (FL)
I would be happy to discuss solving any tax problem, including eliminating IRS and State tax penalties.