How to get the IRS to remove Penalties and Interests
The three most common causes of a an IRS tax penalty are; late filing, late payment, and underpayment of the amount due in taxes (this is when you send below your estimated tax payment). What you need to do to get the IRS to remove penalties and interests for your personal tax debt is give a reasonable cause.
When we say give a reasonable cause, we are simply implying that you give an excuse but one strong and reasonable enough. Some strong enough excuses can include health-related issues, depression, and issues that have to do with the loss of a family member. When you write one of these as reasonable cause, they are going to stand a greater chance of being accepted.
The IRS has its own definition of a reasonable cause and excuses like “I forgot” are definitely not part of it. Giving a lazy excuse will not get the IRS to look favorably upon your case.
The examples of reasonable causes we gave above are your best bet. They let the IRS know that you did not break the rules out of nonchalance. While they may not work a hundred percent of the time, but they do work most times.
You can only get either of two responses from the IRS; they can either say yes, which means that they’re going to accept your reasonable cause and remove your penalty or they’re just going to say No.
The IRS may, but is not likely to ask you for proof for your reasonable cause. Also, if you have a good history of filing and paying your tax return early, your excuse for a reasonable cause has a higher chance of getting accepted.
IRS first time penalty abatement
If in times past, you have always filed or paid your taxes on time, then you stand a higher chance of qualifying for the first time penalty waiver called the IRS first time penalty abatement. Take note that your past payments and filings are all computerized and taken note of by the IRS and if you have a bad history of late payment and late filing, even if you have s reasonable cause, it will likely work less than ten percent of the time.
To increase your chances of getting a first-time penalty abatement, after receiving the notice for your penalty, try reaching the IRS by phone because the IRS agents have the liberty of making that decision at their discretion.
On the notice of your penalty, you will see a number where you can contact them. Just place a call through to them and you may be able to easily get your penalties waived.
If this does not work, let’s say the IRS agent says no, you have another option. Simply go back to the letter (the notice of the penalty) and reply to it stating your reasonable cause, why you believe you should be excused of the penalty, and send it as a mail to the IRS.
If this works and the IRS accepts it, then congratulations. However, if this fails also, your last resort is filing the official penalty abatement form.
There is an official form to fill to get the IRS first time penalty abatement. You can just fill it and hope for a favorable response. If you are wondering how to get the IRS to remove Penalties and Interests, these are your three options for securing the IRS first time penalty abatement.
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