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IRS Abatement of Penalties and Interest | No Magic Wand, You Must Establish Reasonable Cause and Exercised Ordinary Business Care and Prudence

 

Click here for updated 2018 Post 

The first question many clients ask me is, "were you able to get the IRS (and/or State) to waive any of the penalties or interest?" The frustrating thing for me is that many people ask this before we even have an agreement in place to resolve the back taxes.  Talk about putting the carriage before the horse!  

If you are looking to hire someone to prepare a Penalty Abatement request for you, please fill out my questionnaire and I will advise you what I believe your chances are to qualify and will provide you with a quote if it appears you have a reasonable shot of convincing the IRS to abate some/all your penalties.

The bottom line is that many people think they are special and deserve a break but obviously that is not the case.  There is no magic wand that is used to abate penalties and the majority of interest can not be abated at all (only the interest that is related towards the penalties, the other interest is statutory-so if you are on a payment plan you are going to pay interest, period).  

The following is taken directly from the Internal Revenue Manual (IRM) on when the IRS may consider abating penalties and associated interest.

There you go!  If you want honest help from someone who is not going to nickle and dime you or promise you false results contact me. 


Nick Hartney, IRS Enrolled Agent 

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