Abatement of Penalties

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The Internal Revenue Code authorizes the abatement of penalties imposed by the IRS for failure to file tax returns or for failure to pay tax and other penalties, if the failure is due to reasonable cause and not willful neglect.

Forgiveness of penalties is decided on a case-by-case basis. Generally, if the taxpayer exercised ordinary business care and prudence and was, nevertheless, unable to file the return on time, the delay is considered due to reasonable cause. Also, a failure to pay may be due to reasonable cause if the taxpayer exercised ordinary business care and prudence, yet could not pay the tax liability.

If the IRS determines that failure to pay or failure to file was due to reasonable cause and not willful neglect, the penalty will not be assessed. You would still be responsible, however, for the underlying tax owed plus interest due.

We can help you seek abatement of your penalties due to reasonable cause and get a reduction in the amount you owe.

We can conduct an evaluation of your current tax situation and make some recommendations. If we find an area of concern, you can rest assured that by engaging our services, our office will act as your advocate and seek to resolve your IRS problems.

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