Abatement of IRS Penalties and Interest

Taxes are bad enough. Personal matters in life can get you behind in your taxes and it is nigh impossible to catch up. The IRS has a program to get your life back without pages and pages of forms to fill out. Today I am going to talk about abatement of IRS penalties and interest.

• Abatement of IRS Penalties: It is easier to get the IRS to abate a penalty than interest. File Form 843 to request abatement. Keep your explanation short and to the point. The biggest drawback is that you need to pay the IRS in full for the tax period you are requesting abatement. If you owe on several years of taxes, file for abatement as soon as each year is paid.
• Abatement of IRS Interest: The IRS allows for abatement of interest for two reasons only: the IRS gave you bad written advice or the IRS delayed an audit unnecessarily causing more interest to accrue.

Learn more about the IRS abatement program here: The IRS Audit Manual: IRS Penalty and Interest Abatement


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