When dealing with Internal Revenue Service (IRS) tax problems, you may find yourself envisioning any number of nightmare scenarios. You may worry about the IRS garnishing your wages, seizing your assets, or putting a lien on your family’s house in Tulsa. Unfortunately, it’s not just the unpaid tax that you have to worry about. When a tax that is owed goes unpaid, penalties start to accrue, and they can add up quickly. If you are already facing tax penalties, it’s time to consider whether you might qualify for a tax penalty abatement.
How the IRS Evaluates a Request for Tax Penalty Abatement
One example where you may qualify for a tax penalty abatement is if you relied on the oral advice that you received from someone who works for the IRS, resulting in a mistake that is now incurring penalties. The employee must have been working in his official capacity when giving the advice. In addition, the IRS will consider the following when evaluating your request:
- Whether you exercised ordinary business care and prudence when you relied on the advice.
- Whether there was a clear relationship between your situation, the advice you received, and the penalty that was assessed.
- Your prior tax history, including your prior experience with dealing with the IRS tax requirements.
- Whether the IRS gave you the correct information in a different way, such as through the use of forms or publications.
- Whether you have supporting documentation to prove that you relied on bad advice from the IRS.
Our Tax Attorneys Can Help Settle Your Tax Penalty Issue
If you are ready to learn more about finding an alternative solution to your tax penalty problem, we encourage you to contact us for a free evaulation from our tax attorneys. We have helped countless clients work with the IRS to find a solution to their tax liability problems. View our listing on Avvo to learn more about our services and strengths.