Video instructions and help with filling out and completing Are Form 843 Erased

Instructions and Help about Are Form 843 Erased

IRS penalties can add up quickly more so because if tax liabilities remain unpaid not only does the IRS tack on penalties but they also attack on interest on top of those penalties fortunately if your IRS defense lawyer is successful in obtaining a penalty abatement and the tax penalties are removed the interest on those penalties will be removed as well this is not to be confused with interest on the tax liability itself interest in that situation is statutorily assessed and not subject to abatement except under much more limited circumstances that I will address later on in this video but interest on penalties are different and can be erased and if the penalties disappear then there's no foundation on which the interest can accrue let's review the steps to request IRS penalty abatement the first step is to request from the revenue officer the pin X form pin X stands for penalty and interest notice explanations and will show where tax penalties and interest have been assessed this will give you IRS defense lawyer the ability to review the circumstances under which penalties have been assessed by the IRS and give the IRS lawyer the ability to examine which of those should be subject of an IRS penalty abatement request where the IRS penalty assessments may have been wrongly assessed or were any funds to be given to the IRS should be applied to best suit you the taxpayer your IRS tax lawyer will also ask you to explain what was going on in your life when these tax penalties were assessed the reason for these personal questions is the IRS defense attorney is looking to make a reasonable cause argument to the IRS for why penalty should be abated there are two types of penalty abatement requests number one first time penalty abatement the taxpayer must have three clear years where there were no IRS tax issues where the tax returns were properly filed and no penalties assessed prior to requesting first time penalty abatement for failure to file failure to pay and to deposit irx tax penalties but what if you've already received first time penalty abatement in the past luckily as long as the prior three years are all clear the taxpayer can again request first-time tax penalty abatement from the IRS even if it's not technically their first time number two reasonable cause penalty abatement when a taxpayer has multiple recent years of tax problems the first time penalty abatement program will not be available to them although first-time abatements may be able to be requested for the first year of penalties otherwise the taxpayers going to request penalty abatement for reasonable cause reasonable cause can be requested by filling out our S form 843 or letter that provides similar information and explains the situation and facts surrounding the reasonable cause penalty abatement request now let's get into an IRS interest abatement request as I insinuated earlier requesting that interest on a tax liability be abated can only be successful under a very limited set of circumstances but interest can be abated if the IRS lawyer can demonstrate that the interest was assessed because of an unreasonable delay by the IRS or because of an error in IRS calculations essentially the IRS must have been the cause of the problem that resulted in the interest assessment for example interest on a tax liability can be abated because of the IRS is own actions such as if an IRS agent is reassigned for training causing a case to sit for longer than necessary or if they lose taxpayer records which can happen from time to time the bottom line if you can't prove of the IRS was at fault for the interest accruing there is no way to remove interest from the tax liability portion of the tax debt and the taxpayer will be limited to getting the IRS penalty abated only if they meet the tax penalty abatement qualifications meet with an IRS lawyer to further discuss how to appeal an IRS rejection of quest for penalty payment in your IRS tax lawyer consultation you'll discuss the collections appeals program otherwise known as a cap appeal an IRS offer and compromise and maybe applying for a currently not collectible status go to WWE rs legal defense calm to learn more and schedule a consultation