The IRS can impose a huge number of tax defaulters who are either not paying taxes or not paying on time. These penalties may also include monetary fines imposed on the taxpayer. Some of the main causes for these penalties are Failure-to-File which is imposed if you file your taxes after the deadline and Failure-to-Pay which is imposed when you have back tax balance after you have filed the taxes. These penalties can be abated by the IRS if you carefully present your case.

 

What is a Penalty Abatement?

Penalty Abatement is a way for the taxpayer to get their penalties removed by the IRS. The IRS has presented this solution to the taxpayers to help them with their tax-related process. In some cases, the IRS can waive the penalties and just ask you to pay the owed taxes without any penalties. It will help the taxpayer pay the taxes. It encourages the taxpayer to pay their outstanding taxes. 

 

Criteria for Penalty Abatement

The taxpayers can ask the IRS to waive their taxes in some cases. But they have to be eligible to apply for the penalty abatement criteria for IRS to successfully accept their application. Here are a few criteria that you must see before applying for a penalty abatement:

  • The taxpayer has successfully filed all the taxes that were owed to him. Or, the taxpayer has come to an agreement with the IRS for an extension in the deadline.
  • The taxpayer should not owe any tax to the IRS. or, they have already come to an agreement with the IRS on the payment plan for those outstanding taxes before applying for the penalty abatement.
  • The track record of the taxpayer is clean. Meaning that the IRS has not imposed any tax penalties on the taxpayer in the past three years.

 

Effectively Presenting Your Case

For you to successfully get your penalties waived off, you must present your case to the IRS in a good manner. It includes establishing a perfect reason for not paying your taxes on time. It is better to include that you tried to pay the taxes but could not for some reason. If you are applying for trust, then you must also include the person who had the authority to file the taxes at the time. 

If you were in a hospital at the time, attach the copies of your hospital bills and receipts to reinforce your case. You may also attach the court records to make your case even stronger. If you follow all these requirements and fulfill the criteria for the penalty abatement as mentioned earlier, then there is a huge chance that you might succeed in getting it. 

There are no hard and fast rules that can guarantee a tax abatement. But to make your case even more effective, it is always better to get professional help to better guide the process.