Hi, my name is Nick Sutton and this is Marc Jernigan. Can we get penalties abated? This may be one of the most common questions that we get. The penalties are typically a large amount of money and most clients say something to the effect of, "If it weren't for the penalties I owe the IRS, I'd be able to pay them in full." The IRS's policy is to use penalties as a deterrent for non-compliance, whether it is non-compliance in filing or non-compliance in failure to pay, or both. The IRS does have the statutory authority to charge taxpayers with penalties if you're not compliant and not fully paid. The IRS is charging you penalties and it won't be long into our conversation before you ask if I can get some of these penalties abated. Most penalties are system-generated, meaning they are automatically asserted and sent out by computers. They are not examined by a human eye. If you want the IRS to waive a penalty, you need to show a reasonable cause for your non-compliance, whether it be fine or pain. So, the answer is, it depends. Do you have reasonable costs? The removal of penalties generally requires the skills of a highly trained professional. Your highly trained professional representative should be asking you things like, "What was the cause of your non-compliance?" What caused your failure to pay the IRS the taxes? And you need to let them know. Your professional representative needs to understand this underlying cause so that they can explain it to the IRS. Everybody has a story, but a story may not be a reasonable cause. If you want to know what counts as a reasonable cause, the IRS has a list on their website. If you want a coach to make an...
Award-winning PDF software
Video instructions and help with filling out and completing Are Form 843 Representative
