Tax Relief – How Penalty Abatement Works

Tax relief programs were introduced by the IRS as early as 1991 to help taxpayers pay their taxes on time and relieve back-taxes, or previous taxes that have not yet been paid. One type of tax relief is called “penalty abatement,” which waives the penalty on unpaid taxes, especially under conditions that you cannot control. These conditions determine the course of action you may take to settle your debts.One category is “reasonable cause,” which essentially includes tax mistakes, absences that could not be avoided, severe illness, death, and being unintentionally unaware of the law. If you qualify as any of these, you may appeal or challenge the penalties on your back-taxes and, with a tax attorney or a tax relief agent, negotiate what you need to pay as a much lower figure.The remaining categories are shoo-ins for tax relief resolutions. “Statutory exceptions” are changes to the tax code, whether minor …