What is Tax Penalty Abatement?

Tax penalty abatement is a process that you can go through in order to get certain tax penalties removed. Here are the basics of tax penalty abatement and how it works.

Tax Penalties

There are a number of different situations that could result in you getting a tax penalty from the IRS. For example, if you file your taxes late, you are going to get a tax penalty. If you file a frivolous return, they are going to give you a $5000 tax penalty. If you have a legitimate reason, there is a way that you can fight this penalty. This is known as tax penalty abatement and it could result in you getting rid of the penalty and saving some money.

How It Works

In order to eliminate a tax penalty, you are going to have to file for an appeal. The IRS has a completely separate division that handles all tax penalty appeals. If you believe that you have a legitimate reason for filing an appeal, you can do so on the IRS website. Once you do this, the IRS appeals division is going to review your case. You may be asked to appear at a hearing in order to state your case. If you are successful, the tax penalty will be removed.

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