Get Rid of IRS Penalties – Remove, Eliminate IRS Penalties – Former IRS
To get rid of, remove, or eliminate IRS penalties there are very specific guidelines to make this happen and to have these penalties gone.
It is critical you met the criteria found under the reasonable cause section of the Internal Revenue Manual. Remember each situation is unique and there are no two cases the same.
You can find on our website a complete list of reasonable cause factors that exist and a working outline to create your own claim for abatement of penalties and interest.
Please go to our homepage and click on Abatement of Penalties.
Listed below are the facts about reasonable cause.
Reasonable Cause to get rid of, remove, eliminate IRS Penalties
IRS Reasonable cause is based on all the facts and circumstances in each situation and allows the IRS to provide relief from a penalty that would otherwise be assessed.
Reasonable cause relief is generally granted when the taxpayer exercised ordinary business care and prudence in determining their tax obligations but nevertheless failed to comply with those obligations.
Equitable Treatment
In the interest of equitable treatment of the taxpayer and effective tax administration, the non-assertion or abatement of civil penalties based on reasonable cause or other relief provisions provided in this IRM must be made in a consistent manner and should conform with the considerations specified in the IRC.
Treasury Regulations (Treas. Regs.), Policy Statements, and IRM Part 20.1, Penalty Handbook determine these cases.
IRS reasonable cause relief is not available for all penalties; however, other exceptions may apply.
Exercising Ordinary Care
For those penalties where reasonable cause can be considered, any reason which establishes that the taxpayer exercised ordinary business care and prudence, but nevertheless was unable to comply with a prescribed duty within the prescribed time, will be considered.
When IRS is considering the information provided in the following subsections, remember that an acceptable explanation is not limited to those given in IRM 20.1.
Penalty relief may be warranted based on an “other acceptable explanation,” provided the taxpayer exercised ordinary business care and prudence but was nevertheless unable to comply within the prescribed time.
The wording used to describe reasonable cause provisions varies.
Some IRC penalty sections also require evidence that the taxpayer acted in good faith or that the taxpayers failure to comply with the law was not due to willful neglect. See specific IRM 20.1 sections for the rules that apply to a specific IRC penalty section.
Taxpayers have reasonable cause when their conduct justifies the non-assertion or abatement of a penalty.
Keys to successful abatement’s:
Each case must be judged individually based on the facts and circumstances at hand. Consider the following in conjunction with specific criteria identified in the remainder of this subsection:
1. What happened and when did it happen.
During the period of time the taxpayer was non-compliant, what facts and circumstances prevented the taxpayer from filing a return, paying a tax, and/or otherwise complying with the law?
2. How did the facts and circumstances result in the taxpayer not complying.
How did the taxpayer handle the remainder of their affairs during this time.
3. Once the facts and circumstances changed, what attempt did the taxpayer make to comply.
Reasonable cause does not exist if, after the facts and circumstances that explain the taxpayer’s non-compliant behavior cease to exist, the taxpayer fails to comply with
Reasonable cause does not exist if, after the facts and circumstances that explain the taxpayer’s non-compliant behavior cease to exist, the taxpayer fails to comply with the tax obligation within a reasonable period of time.
Get Rid of IRS Penalties – Remove, Eliminate IRS Penalties – Reasonable Cause
