Qualifying for IRS Penalty Abatement
IRS is known as an organization that accepts absolutely no excuses. They are implementing strict disciplinary measures for taxpayers who pay their taxes late such as 25 percent penalty for the late payments and further interest on it. But the existence of the penalty abatement softens the perception of strict reinforcement for just a little bit. Penalty abatement West Palm Beach FL is a waiver of the charges and fees incurred on late or non-payment from filing of income tax. Not all individuals would be granted penalty abatement and it is awarded by the IRS on a very selective basis. In order to qualify for penalty abatement, a business owner must prove that he cannot pay his taxes for certain reasons. The applicant must also prove supporting evidence to prove that he did not intentionally evade the deadline. Of course, the applicant must have a valid reason and then the case will be reviewed. Upon receiving of penalty abatement, the person is expected to a good will to settle all of the outstanding taxes on their account. Failure of paying the remaining tax balance would lead in to more charges by the IRS. In this article, we would introduce you to the valid reasons that IRS ca grant for individuals and business owners. The following are the examples:
Examples of Unexpected Events
Calamities and Natural Disaster
If you were a victim of a hurricane, fire, flood or any hard hitting calamities then leading you to unable to pay your taxes at deadline, you are valid to apply for abatement. IRS would know if you live in an area that has a recorded natural disaster. The IRS usually releases public announcement with information on how to file for penalty abatement. You can always visit their website at www.irs.gov and see the process in making penalty Abatement. Theft
If you have been a victim of a local crime like theft and your records were taken away by the culprit, you have the right to apply for abatement by submitting necessary documents that would serve as your evidence. The police report would be your best evidence when the theft was recorded. Also include any necessary document needed like insurance plan that shows any claim documentation. Major Illness and Death in the Family
If you suffer from a serious illness and had to be hospitalized during the time that you have to suppose to file your taxes, you can provide the necessary documents like medical certificates. Individuals with genuine reasons for non-compliance are also granted by the IRS because naturally things happen in life to put plans into a tailspin. However, reasons like death in the family will also be a factor to consider your application. But you must provide them the reason and written explanation how the death impacted your responsibility to pay your taxes (If you are responsible for the financing of the funeral). As always, you need to supply proof of death by presenting the death certificate of your relative or family member.
Mistakes Committed by Professionals
Tax Professional’s faulty advice
Taking the advice of a tax professional that made a mistake or maliciously did not tell you the truth that may contribute with the reasonable cause. You need to provide proper documentation to support your case. Faulty Advice from the IRS
There are some cases where the staff of the IRS may be responsible for giving incorrect information that results in missing deadlines or making incorrect information that results in missing deadlines or making wrong payments. If this is your case, let the IRS know that their staff committed the error and support if with proper documentation that is provided to you by the faulty staff member and then indicate that you were following this advice. Make sure to remember the time and date that you went in the IRS staff and support everything with writing. In issuing penalty abatement, it is essential to have the proper documentation to have a solid proof that you have intentionally missed the deadline. Make sure to submit your application as soon as possible to make yourself look credible. Once IRS have rejected your motion, you can never use the same reason once more.
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