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"Abatement" of interest and penaltiesIt is possible, under fairly narrow criteria, to ask to the IRS to "abate" (reverse) penalties and interest. Abatement
of interest Abatement of interestInterest associated with individual tax returns can be abated only for the following reasons:
To request an abatement of interest due to an IRS ministerial error, use IRS Form 843. Abatement of interest based on an IRS ministerial or managerial act is highly technical and may require the assistance of a qualified attorney. Abatement of penaltiesAbatement of penalties is based on what the IRS calls "reasonable cause." Generally, if you used ordinary business care and prudence but in spite of those efforts and due to circumstances beyond your control you were unable to meet your federal tax obligations, the IRS might abate any penalties. Mere financial hardship will typically not be considered reasonable cause. To make such a request, file a detailed account of your efforts to meet your federal tax obligations and the specific reasons why you were unable to comply. Provide as much supporting documentation as possible. The IRS will review these requests carefully to match the facts claimed with the supporting documentation. Some of the recognized bases for reasonable cause include:
Penalty abatement can be highly technical thus generally requires the assistance of an experienced tax attorney or other tax professional. |
