If you have been told by the IRS that you are being charged a penalty fee for tax related issues, you should seek the counsel and advice of an attorney and apply for a penalty abatement.
No matter what your situation is, you should not give up hope. By speaking with an experienced attorney you can determine the best course of action to take, which may include requesting penalty abatement.
It’s important to understand that just because you have been notified by the IRS regarding back taxes and penalties, in all probability, no one has reviewed your case on a personal basis.
The IRS relies heavily upon automated computer systems that will identify delinquencies and discrepancies.
It may be that you have had a period of hardship, disaster, or other tragedy that contributed towards your becoming delinquent with your tax payments.
If you think your situation may qualify for penalty abatement then you should schedule a consultation with an experienced tax attorney. He or she will be able to assess your case and if you qualify, help guide you through the process.
There are a number of different situations that may qualify for penalty abatement, such as a serious sickness or disability. Natural disasters, such as fires, hurricanes, floods, that cause a great disruption in your financial security might qualify for penalty abatement.
Also, if you can show that due to circumstances outside of your control, your records were destroyed you may qualify for penalty abatement.
Additionally, you must be able to prove that you were not negligent in paying your debts to the IRS. Since the process is complicated, the best way to determine the course of action that you should take is to schedule an evaluation with an attorney.