Abatement of Interest and Penalties West Lafayette IN

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

Local Companies

H & R Block
(317) 867-3698
17445 Carey Rd
Westfield, IN
Tax Shop the
(812) 793-2838
408 E Howard St
Crothersville, IN
Boggs Larry Tax Service
(812) 427-3929
318 Liberty St
Vevay, IN
Colbert Ball Tax Service
(260) 827-0100
941 N Main St
Bluffton, IN
Gencorp Automotive
(317) 580-2400
11711 N Meridian St
Carmel, IN
Underwood Income Tax
(317) 784-7267
2445 Shelby St
Indianapolis, IN
Accountax Inc
(317) 257-5747
6100 N Keystone Ave
Indianapolis, IN
Lightning Refund
(317) 636-0660
3105 English Ave
Indianapolis, IN
K and K Tax & Accounting
(317) 890-1700
2236 N Mitthoeffer Rd
Indianapolis, IN
Beach R L & Co Accountants
(219) 462-7544
1608 Lincolnway
Valparaiso, IN

provided by: 

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.


Copyright © GotTrouble.com, Inc. All rights reserved.

Click here to read rest of the article

Featured Local Company

Raymond James & Associates

217-431-0307
25 E Liberty Lane
Danville, IL