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When you owe money to the IRS and you do not pay it on time, then you will be facing interest and penalties. This increases the amount you owe exponentially, which could make it even harder for you to pay your IRS tax debt. If the penalties on your tax debt create a hardship for you, you can apply for penalty abatement or adjustment.
Penalty Abatement is a program where the IRS removes any penalties on your account. These could have arisen due to filing late, a falsified tax return, and other problems with your tax return. You might also have faced an IRS audit, which found that you underpaid. This requires you to pay the amount you owe, and you will typically also be charged certain penalties. You have the right to appeal the penalties to get them removed or reduced, which in many circumstances significantly reduces your tax liability and increases your ability to pay. It is not rare for the IRS to remove the penalties; about one-third of tax penalties are successfully removed.
The IRS reviews each individual case to see if it qualifies for abatement or adjustment. Some common reasons for being approved include a problem with your tax return in the mail that delayed its receipt, a death or illness, errors by the IRS, or some catastrophe or disaster destroying the records. One of the main qualifications for IRS penalty abatement is reasonable cause, and this can be interpreted in a variety of ways. The other three categories include Administrative Waivers, Correction in Service Error, and Statutory Exceptions.
The process for successfully receiving abatement for your penalties is complex. First, you have to fill out the penalty abatement form declaring why you feel you should be relieved of the charges. Then, you will typically have to face an IRS hearing that will decide whether or not you deserve to receive the abatement.
Fighting for penalty abatement or adjustment from the IRS can be time-consuming and difficult. By allowing the professionals at Fidelity Tax Relief to take on your case, you do not have to worry about the process. Instead, you will have experienced tax professionals working on your behalf, filing the IRS penalty abatement form, and facing the IRS during your hearing. They will be able to present your case in a professional and objective manner, which improves your chance of success. If there are any other tax relief programs for which you qualify, such as Offer in Compromise or Installment Agreements, they will assist you in applying for them.
The tax professionals at Fidelity Tax Relief will review your case to see if Penalty Abatement or some other type of tax debt settlement is right for your case.