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Qualifying for IRS Penalty Abatement


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									Title: Qualifying for IRS Penalty Abatement

Article Summary: Penalty abatement is a waiver of the charges and fees incurred on late or non-
payment from filing of income tax. Not all individuals would be granted penalty abatement and it is
awarded by the IRS on a very selective basis.

Article Body

Qualifying for IRS Penalty Abatement

IRS is known as an organization that accepts absolutely no excuses. They are implementing strict
disciplinary measures for taxpayers who pay their taxes late such as 25 percent penalty for the late
payments and further interest on it. But the existence of the penalty abatement softens the perception
of strict reinforcement for just a little bit. Penalty abatement West Palm Beach is a waiver of the
charges and fees incurred on late or non-payment from filing of income tax. Not all individuals would be
granted penalty abatement and it is awarded by the IRS on a very selective basis.

In order to qualify for penalty abatement, a business owner must prove that he cannot pay his taxes for
certain reasons. The applicant must also prove supporting evidence to prove that he did not
intentionally evade the deadline. Of course, the applicant must have a valid reason and then the case
will be reviewed. Upon receiving of penalty abatement, the person is expected to a good will to settle all
of the outstanding taxes on their account. Failure of paying the remaining tax balance would lead in to
more charges by the IRS.

In this article, we would introduce you to the valid reasons that IRS ca grant for individuals and business
owners. The following are the examples:

Examples of Unexpected Events

Calamities and Natural Disaster

If you were a victim of a hurricane, fire, flood or any hard hitting calamities then leading you to unable
to pay your taxes at deadline, you are valid to apply for abatement. IRS would know if you live in an area
that has a recorded natural disaster. The IRS usually releases public announcement with information on
how to file for penalty abatement. You can always visit their website at www.irs.gov and see the process
in making penalty Abatement.


If you have been a victim of a local crime like theft and your records were taken away by the culprit, you
have the right to apply for abatement by submitting necessary documents that would serve as your
evidence. The police report would be your best evidence when the theft was recorded. Also include any
necessary document needed like insurance plan that shows any claim documentation.
Major Illness and Death in the Family

If you suffer from a serious illness and had to be hospitalized during the time that you have to suppose
to file your taxes, you can provide the necessary documents like medical certificates. Individuals with
genuine reasons for non-compliance are also granted by the IRS because naturally things happen in life
to put plans into a tailspin. However, reasons like death in the family will also be a factor to consider
your application. But you must provide them the reason and written explanation how the death
impacted your responsibility to pay your taxes (If you are responsible for the financing of the funeral). As
always, you need to supply proof of death by presenting the death certificate of your relative or family

Mistakes Committed by Professionals

Tax Professional’s faulty advice

Taking the advice of a tax professional that made a mistake or maliciously did not tell you the truth that
may contribute with the reasonable cause. You need to provide proper documentation to support your

Faulty Advice from the IRS

There are some cases where the staff of the IRS may be responsible for giving incorrect information that
results in missing deadlines or making incorrect information that results in missing deadlines or making
wrong payments. If this is your case, let the IRS know that their staff committed the error and support if
with proper documentation that is provided to you by the faulty staff member and then indicate that
you were following this advice. Make sure to remember the time and date that you went in the IRS staff
and support everything with writing.

In issuing penalty abatement, it is essential to have the proper documentation to have a solid proof that
you have intentionally missed the deadline. Make sure to submit your application as soon as possible to
make yourself look credible. Once IRS have rejected your motion, you can never use the same reason
once more.

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