There is only one way to get IRS penalties and interest removed to lower your tax bill.
You must know the system to get IRS tax penalties abated or removed from the IRS.
As former IRS agents we know the system. you can go to our home page and look at abatements of penalties and interest for full detail on how to get IRS penalties removed.
If you have more than $25,000 worth of penalties and interest is best to hire a tax professional if you have under $25,000 in your penalties and interest please note the following:
5.1.15.1 (09-03-2008) From the Internal Revenue Service.
People have asked, where is the requirement found to abate penalties and interest?
It is found in the IRM. Here is the authority and law to do this.
Tax Abatements – Law and Regulations
1. According to the law and regulations, the Service has the authority to abate tax.
2. Law – Internal Revenue Code (IRC) 6404(a) provides (in part):
The Secretary is authorized to abate the unpaid portion of the assessment of any tax or any liability in respect thereof, which–is excessive in amount, or is assessed after the expiration of the period of limitation properly applicable thereto, or is erroneously or illegally assessed.
3. Regulations – Treasury Regulation 301.6404?1 provides (in part):
The district [area] director or the director of the regional service center [servicing campus] may abate any assessment, or unpaid portion thereof, if the assessment is in excess of the correct tax liability, if the assessment is made subsequent to the expiration of the period of limitations applicable thereto, or if the assessment has been erroneously or illegally made.
No claim for abatement may be filed with respect to income, estate, or gift tax.
Except in case of income, estate, or gift tax, if more than the correct amount of tax, interest, additional amount, addition to the tax, or assessable penalty is assessed but not paid to the district [area] director, the person against whom the assessment is made may file a claim for abatement of such overassessment. Each claim for abatement under this section shall be made on Form 843.
The Commissioner may issue uniform instructions to district [area] directors authorizing them, to the extent permitted in such instructions, to abate amounts the collection of which is not warranted because of the administration and collection costs.
Do not let an IRS agent tell you they cannot abate the penalties on cases. They will tell you this because they are lazy and do not want to file the paperwork. Show them you know of this authority.
We are very successful on abating penalties and interest when reasonable cause does exist.
