Alternatives to the IRS Penalty Abatement

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The IRS penalty abatement is a great option for avoiding hefty tax fines, but unfortunately, it’s not available to all taxpayers. Thankfully, other options exist. These alternate paths allow you to avoid hefty penalties as you attempt to get a handle on your tax situation. Below, we examine a few of the most promising alternatives:

Reasonable Cause Relief

If you fail to qualify for the FTA waiver, you may still be eligible for tax relief on the basis of reasonable cause. Essentially, this means that circumstances outside of your control have made it difficult for you to file or pay on time. While a simple inability to pay will not grant you reasonable cause relief, you may avoid penalties if you can demonstrate that a natural disaster or the death of a close family member prevented you from fulfilling your tax obligations.

IRS Errors

Was the IRS in the wrong in posting filing extensions or other matters? If so, you may qualify for penalty relief. A penalty waiver may also be available if you received incorrect written or oral advice from the IRS that caused you to miss deadlines or make other critical errors. Mistakes on the behalf of the IRS should be thoroughly documented to maximize your chances of avoiding penalties.

Statutory Exemptions

Depending on your situation, you may qualify for penalty exemptions, despite having a history of filing late or failing to qualify for a reasonable cause abatement. For example, if you currently reside in a presidentially declared combat zone, you may temporarily be exempt from paying certain tax penalties. This postponement is highlighted in the Internal Revenue Code (IRC) § 7508.

Not sure if you qualify for IRS penalty abatement? Explore your options with assistance from the experts at the Highland Tax Group. Reach out today to learn more about our tax resolution services.