Penalty Abatements: Forgiveness of IRS and State Tax Penalties
The IRS charges penalties and interest on the tax you owe. Under certain circumstances, the IRS or State will agree to reduce these penalties or refund penalties paid back to you. For forgiveness of State tax penalties, click HERE. Contact us today for more information!
Achievable Dream Tax Resolution offers FREE penalty abatement requests with any tax resolution strategy!
Common reasons the IRS will forgive penalties:
- This is the first time you have owed taxes
- You owed taxes because of circumstances outside your control
- Paying the taxes would have caused you an undue hardship
- You are no longer accruing back taxes
- You owed taxes because of natural disaster; fire, hurricane, flood, etc.
- You owed taxes because of theft and there are police records to support this.
- You were unable to file your taxes because you were serving in the military in a combat zone.
- You were unable to file your taxes because you were incarcerated.
- You were unable to file or pay your taxes because you were in the hospital or suffered from a medical condition which prevented you from meeting your tax obligations.
Reasons the IRS will NOT forgive penalties:
- You were afraid to file your taxes because you owed a balance.
- You did not file your tax returns because you fell for a tax avoidance scam
- You procrastinated or forgot to file your taxes on time.
A Penalty Abatement Success Story
"We are a not for profit located in Panama City, Florida that specializes in charitable services for children and individuals with mental and physical disabilities. Our agency ran into problems with our 990 tax forms and it was determined that we could be responsible for payment penalties and interest in excess of $20,000. On November 9th, (Mrs. Duran) called with great news, our penalties and interest of more than $21,000 had been abated by the Internal Revenue Service. I could not have been more pleased with the outcome as it was totally unexpected. We assumed that we would have to work out a payment plan with the Internal Revenue Service and fulfill our obligation of paying the penalties and interest. If this would have been the case, then we would have had to cut several of our programs to manage this new debt. It is comforting to know that there are companies like yours who meet the needs of others by putting them and their problem first and making every effort to solve that problem with the highest degree of professionalism and compassion." - Fred