Can You Remove or Reduce IRS Tax Penalties?

If you owe penalties to the IRS, in addition to back taxes, you want to consider all your options for reducing your liability. One of the best ways you can do this is by learning how to remove IRS penalties. This is not something that everybody can do, but there are some options that may suit your situation. Simply put, you can remove IRS penalties. But this is something that the IRS will have to agree to.

With abatement you have the ability to remove or reduce some or all of the penalties and interest that you have occurred. That being said, you cannot get rid of the initial amount of tax through penalty abatement. Instead, you must deal with this situation separately if you cannot afford to pay the IRS. Most people find that abatement allows them to remove the majority of their penalties, but not the interest on their account. This is better than nothing, and if you have this option you should be sure to take full advantage. In many cases, penalties can make up to 25 percent of the total amount owed. Getting this removed from your account can take a huge financial burden off your back. 

It is a good idea to file for penalty abatement if you agree that you owe money, but are unsure of why penalties have been assessed to your account. One important note: if you apply for penalty abatement and the IRS agrees you need to be ready to pay your tax debt in full.

To qualify for penalty abatement you need to convince the IRS that you should not have to pay this additional money. Here are just a few reasons that will give you a good chance at receiving penalty abatement: a serious sickness, family problem such as a divorce, destruction of important tax records, tax professional who offered harmful advice, a natural disaster, and long term unemployment. If you have faced any of these issues you have a much better chance of removing IRS penalties.

To remove IRS penalties you need to file for penalty abatement. The process for doing so is simple. You have three options:

1. Send a letter to the IRS explaining your situation and requesting a refund of the penalties that have been charged.


2. If you would rather not write a letter, you can call the IRS and request to speak directly with a representative that handles these cases.


3. IRS Form 843 is used specifically to request abatement. You can follow the steps outlined on this form to get started.
   

In short, you can remove IRS penalties. But remember, you have to prove to the IRS that you have a good reason for incurring the penalties in the first place.

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