Abatement of Interest and Penalties Madison WI

It is possible, under fairly narrow criteria, to ask to the IRS to reverse penalties and interest.

Local Companies

Neuenschwander Asset Management, LLC
608-838-3330
4722 Farwell Street
McFarland, WI
Neuenschwander Asset Management, LLC
608-838-3330
4722 Farwell Street
McFarland, WI
Kemp Financial Services
608-442-3500
3807 State Hwy 19
Sun Prairie, WI
Liberty Tax Service
(608) 251-4242
945 S Park St
Madison, WI
Motiff & Fayram Ltd
(608) 833-2111
402 Gammon Pl
Madison, WI
H & R Block
(608) 241-1832
4198 Nakoosa Trl
Madison, WI
Instant Tax Service Inc
(608) 826-1040
433 Grand Canyon Dr
Madison, WI
H & R Block
(608) 829-2135
6746 Odana Rd
Madison, WI
Greene David
(608) 662-8262
7818 Big Sky Dr Ste 104
Madison, WI
H & R Block
(608) 829-1442
7011 Tree Ln
Madison, WI

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It is possible, under fairly narrow criteria, to ask to the IRS to "abate" (reverse) penalties and interest.

  • Abatement of interest
  • Abatement of penalties

Abatement of interest

Interest associated with individual tax returns can be abated only for the following reasons:

  • (A) An IRS math error;
  • (B) Interest on an erroneous IRS refund;
  • (C) Interest on underpayments by taxpayers residing in presidentially-declared disaster areas;
  • (D) Interest that is attributable to any unreasonable error or delay resulting from an IRS ministerial or managerial act.

To request an abatement of interest due to an IRS ministerial error, use IRS Form 843. Abatement of interest based on an IRS ministerial or managerial act is highly technical and may require the assistance of a qualified attorney.

Abatement of penalties

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.


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Featured Local Company

Neuenschwander Asset Management, LLC

608-838-3330
4722 Farwell Street
McFarland, WI
www.namadvisors.com