An IRS penalty abatement is the best way to eliminate IRS penalties for late payment and late filing.\u00a0 An IRS penalty abatement doesn\u2019t reduce the underlying tax, just the penalties associated with that tax.\u00a0 However, the IRS penalty abatements are few and far between.\u00a0 You had better have a good story (excuse) ready before you request an IRS penalty abatement.<\/p>\n
When you file your returns late, or are unable to pay a tax, you have three components to your IRS tax debt \u2013 the tax payable, interest which begins on the date the return was due, and penalties from filing late and\/or paying late.\u00a0 When you agree with the amount of tax due, and you understand that interest for late payment can\u2019t be waived under any circumstances, then you are left with the penalties.<\/p>\n
These IRS penalties can be 25% to 50% of the tax, so they often make up a significant portion of your total IRS tax debt.\u00a0 An abatement targets these penalties and is based on fairness \u2013 it would be unfair to hit you with these fees because the late filing or late payment was outside of your control.<\/p>\n
Note that and IRS penalty abatement is not based on your ability or inability to pay the tax, interest or penalties.\u00a0 It is based solely on fairness.\u00a0 Whether you can afford to pay or not does not come in to the equation.\u00a0 If you are unable to pay the debt, then you need an installment agreement or an Offer in Compromise.<\/p>\n
If you wish to file for an IRS penalty abatement, you should be able to prove that the late filing or late payment was due to an extreme situation \u2013 that you were victimized by factors beyond your control.\u00a0 And you story had better be convincing.\u00a0 The IRS approves very few penalty abatements.<\/p>\n
Here are a few grounds for an IRS penalty abatement:<\/p>\n
These, along with another significant disruption of your life, are the best arguments for a tax penalty abatement.<\/p>\n
It is rare for written advice from your CPA or tax professional to result in an IRS penalty abatement.\u00a0 Most tax people have disclaimers on the bottom of their letters and emails stating their work can\u2019t be used to challenge interest or penalties.\u00a0 While you can sue your tax person for erroneous advice, getting your tax penalties reduced or eliminated as a result is unlikely.<\/p>\n
I hope this article helps get you through the IRS penalty abatement process.\u00a0 For many of us, it is the best option\u2026 especially if you can\u2019t contest the underlying tax amount.<\/p>\n
<\/p>\n
Let\u2019s face it, taxes for expats and the offshore markets is specialized information that your mom and pop accountant down the street is not going to understand. Speak with our CPA if you are serious about reducing your tax obligations and staying compliant \u2013\u00a0Click Here To Find Out More<\/a><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" An IRS penalty abatement is the best way to eliminate IRS penalties for late payment and late filing.\u00a0 An IRS penalty abatement doesn\u2019t reduce the underlying tax, just the penalties associated with that tax.\u00a0 However, the IRS penalty abatements are few and far between.\u00a0 You had better have a good story (excuse) ready before you […]<\/p>\n","protected":false},"author":308,"featured_media":26237,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[1401],"tags":[],"yst_prominent_words":[5032,5026,5017,5028,5036,5012,5011,4908,4914,2328,5022,5015,5014,5019,5034,5030,5013,5038,5024,5037],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2015\/11\/money-2180338_1280.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/7910"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/308"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=7910"}],"version-history":[{"count":4,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/7910\/revisions"}],"predecessor-version":[{"id":41846,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/7910\/revisions\/41846"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/26237"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=7910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=7910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=7910"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=7910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}