Penalty Abatement
IRS forgiveness of failure-to-file, failure-to-pay, or accuracy-related penalties under specific qualifying circumstances.
Detailed Explanation
Two primary paths exist: First-Time Abatement (FTA) is available to taxpayers with a clean compliance record for the prior three years and is granted upon request for a single tax period. Reasonable Cause abatement requires showing that the failure was due to circumstances beyond the taxpayer's control (illness, natural disaster, reliance on professional advice, etc.). Interest is generally not abatable except in narrow circumstances. Penalty abatement is requested via Form 843 or by phone or letter.
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Learn about IRS & State Tax ResolutionRelated Terms
IRS Audit
A formal examination by the Internal Revenue Service of a taxpayer's records to verify that income, deductions, and credits were reported correctly.
IRS Installment Agreement
A formal payment plan with the IRS that allows taxpayers to pay tax debt over time, monthly, instead of in a single lump sum.
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