Answer: Depending upon the specifics of your situation, it may be possible to avoid hundreds, or even thousands, of dollars in penalties simply by “designating” voluntary payments applied toward your tax liability. Keep in mind that payments made in accordance with a formalized installment agreement are not considered voluntary, so you have no right to
If you do not qualify for an Offer in Compromise, an alternative method of reducing the amount that you owe is to obtain an Abatement of Penalties. In order to obtain an Abatement of Penalties with the Internal Revenue Service it is necessary to establish what the IRS calls “reasonable cause.”
A Formal Request for Abatement of Penalties is a written request to the government stating a case for reasonable cause and abatement of penalties. These Formal Requests can vary widely in quality, depending upon who drafts the request.
In order to maximize your chances of obtaining an Abatement of Penalties, a professional and lawyerly written document is necessary. Facts must be portrayed in a light that is favorable to the taxpayer. The law must be stated accurately. The analysis should contain persuasive legal arguments applying the law to the facts at hand. Any supporting documents tending to establish reasonable cause should be attached.
Taxpayers generally only get one chance to request an Abatement of Penalties. Let our experienced attorneys make the most of it.
At Fortress, we guarantee that the tax practitioner handling your case will be a licensed attorney who has demonstrated superior advocacy skills – both verbal AND written. Since attorneys possess comprehensive training in legal writing and our staff possesses extensive experience in drafting Formal Requests for Abatement of Penalties, we can assure you of the very best chances of obtaining an Abatement of Penalties.
Attorneys vs Accountants
Which is Best for You?
One of the most frustrating situations my clients confront is the IRS’s addition of large amounts of tax or Civil Penalties to tax periods that ended a long time ago. There can be several reasons for additions to tax or Civil Penalties, but the most common ones I encounter are reporting and reconciliation deficiencies across
April 15th is right around the corner, and if you expect to owe 1040 income tax, but don’t have the resources with which to pay it, you are in the same boat as many Americans. First of all, don’t panic. Federal officers are not going to show up at your home on April 16th to