Requirements for IRS Penalty Abatement
The IRS allows individuals to dispute interest and penalties that they have been charged for several reasons. If a taxpayer falls into any of the categories outlined by the IRS’s broad definition of abatement, it is likely that the majority of the penalties can be wiped clean. The IRS requires that the individual filing for penalty abatement meets one of three reasons which are reasonable cause, administrative waivers or a mistake by the IRS.
Requesting and Filing for Penalty Abatement
If the taxpayer meets the requirements for penalty abatement they will be required to file several documents with the IRS to prove to the IRS that they do indeed meet the requirements. There are three ways a taxpayer can present their case to the IRS for abatement; verbal, written or through IRS form 843. No matter which way you choose you will be required to explain and detail out a good reason why you failed to pay the taxes owed.