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What is IRS Penalty Abatement? In many cases, tax debt may include a significant portion of penalties and interest. If you're facing penalties for late filing or payment, you may be able to get them removed or refunded through a process called penalty abatement or adjustment. Abatement refers to the elimination of assessed tax liability, while adjustment refers to the reduction or alteration of assessed tax liability.

Relief from penalties falls under four categories: Reasonable Cause, Statutory Exceptions, Administrative Waivers, and Correction in Service Error.

What is Reasonable Cause for IRS Penalty Abatement? The IRS may review penalties if there is a reasonable cause for abatement or adjustment. Reasonable cause may include:

  • Incorrect mailing address

  • Death or illness in the family

  • IRS employee error

  • Natural disasters like earthquakes, floods, or other catastrophes

How to Request Abatement of Tax Penalties? Successful tax resolution results in the removal of about one-third of tax penalties by the IRS. To request the removal or refund of a tax penalty, you'll need to complete IRS Form 843, also known as a "Claim for Refund and Request for Abatement."

Professional Help with IRS Penalty Abatement Low Cost Tax Service can help you make payment arrangements that the IRS will accept. If there were circumstances beyond your control that led to delinquency, our tax specialists can challenge the penalties and interest that have accumulated.

Penalty Abatement may be the best option for resolving IRS Tax Debt, and Low Cost Tax Service can help you determine if this is the right solution for your situation.

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