Abatement of Interest and Penalties Houston TX

Abatement of penalties is based on what the IRS calls "reasonable cause."

Generally, if you used ordinary business care and prudence but in spite of those efforts and due to circumstances beyond your control you were unable to meet your federal tax obligations, the IRS might abate any penalties. Mere financial hardship will typically not be considered reasonable cause.

To make such a request, file a detailed account of your efforts to meet your federal tax obligations and the specific reasons why you were unable to comply. Provide as much supporting documentation as possible. The IRS will review these requests carefully to match the facts claimed with the supporting documentation. Some of the recognized bases for reasonable cause include:

• (A) Reliance on erroneous written advice from the IRS;
• (B) Reliance on erroneous advice from a qualified tax advisor;
• (C) Disturbance as the result of fire, casualty or other natural disaster;
• (D) Serious illness affecting you or a close family member;

Penalty abatement can be highly technical thus generally requires the assistance of an experienced tax attorney or other tax professional.