There are several different ways the IRS removes or reduces penalties. One option is called First Time Penalty Abatement (” FTA”). This is generally requested verbally over the phone, but you must have a “clean record” for the previous 3 years prior to the year your requesting relief on. This does not require you to have a “reason” or an “excuse”!
The other option is a bit more involved and is called “Reasonable Cause”. The IRS has some nine different reasonable cause defenses you can apply under. One of them for example, is death, serious illness, or unavoidable absence. It only covers immediate family members, and the issue must be addressed in a reasonable amount of time after the illness or death. You’ll need to show other obligations weren’t paid-not just the taxes. You’ll also need written proof of the illness or death. This must be requested via a formal letter to the IRS written in a very specific format. Call us to see if any of the other 8 arguments apply to you.
We at Tax Resolution 360 are experts in IRS tax problem resolution and penalty abatement. We help taxpayers with their IRS Problems every day. There is a solution to EVERY problem. You’ll never have to speak or meet with the IRS, once we’re in the picture! Call us today for your FREE confidential consultation.