The best tools for reducing your tax debt is known as a penalty abatement request. This is usually made for delinquency penalties, not the other types of penalties. Essentially, you're claiming that your failure to file or failure to pay was due to a good cause, and the IRS should waive those delinquency penalties. The standard is whether your failure to file or failure to pay was due to reasonable cause and not willful neglect. There is a list of reasons for which the IRS will grant penalty abatements, but the main reason is for medical problems. If you or a family member had medical issues, perhaps that was the reason why you filed late or paid late. The other reasons given by the IRS are not as persuasive. If the IRS grants your request, you could receive up to a fifty percent reduction in your taxes. However, even this is too much for some people, so the request may be futile. But for others, perhaps the lower debt can be paid or an offer and compromise would be appropriate. The penalty abatement request does not extend any statutes of limitations, so there are no negative consequences to you for its denial. There is no form for making such a request; it must be specially customized for you, and this is where our specialty comes in. If you feel you are entitled to a penalty abatement request, bring in all your evidence. We will go over it and construct a solid request for you. Of course, you can always call our office for more specific advice. Thanks, and we look forward to hearing from you.
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Video instructions and help with filling out and completing Which Form 843 Identifying
