Don’t Pay IRS Penalties!
The IRS has over 148 different types of penalties. And boy do they love to hand them out. The worst part is that the IRS also charges interest and additional penalties on the original penalty.
So you must try to get them reduced or completely abated to zero.
After you have decided to make a request to the IRS to “Abate Your Penalties” you must consider where and when to make the request. In my experience your chances are better in dealing with IRS Service Centers. The timing of your request depends on the type of penalty assessed against you. It always makes sense to request penalty abatement before you pay the IRS. Although, if you’ve already paid the bill, it can’t hurt to ask for a penalty abatement and refund.
These penalties can often be reduced to ZERO if you have “REASONABLE CAUSE.” What makes up REASONABLE CAUSE you ask? Well, in my experience in negotiations with the IRS, anything may qualify as long as its reasonable.
I’ve had the IRS abate penalties for medical reasons, bad accountants, ignorance of the tax laws, ex-spouses, helping to provide care for a loved one, military call-ups, fires, floods, alcoholism, drug abuse, death, and even relying on IRS advice.
Penalties can be such a high percentage of the total amount owed to the IRS; it usually makes sense to consider requesting the IRS to reduce all penalties to ZERO.
YOU MAY BE PLEASANTLY SURPRISED. YOU HAVE NOTHING TO LOSE AND THE SAVINGS COULD BE HUGE!