IRS Penalty: How Do I Request a Penalty Removed From the IRS?
Did you know that each year the American government collects roughly $10.6 trillion from its citizens? Sadly, many people aren’t able to file their taxes on time. This can be for a variety of reasons.
Unfortunately, when this happens the IRS places expensive penalties on you. The good news is that there are some ways to potentially get this type of IRS penalty removed. But, how exactly do you go about doing this?
Simple: by reading this article! In it, we’ll cover everything you need to know about requesting an IRS penalty removal. Let’s get started!
Provide a Written Letter With Reasonable Cause
If you get a penalty from the IRS, then you can try to remove it by sending an appeal. To do this you will need to write a penalty abatement letter. What is this? It’s a written explanation that explains the circumstances of why you weren’t able to file your taxes.
In this letter, you will need to provide a reasonable cause for the IRS to remove the penalty. There are a variety of circumstances that can persuade the IRS to remove the penalty.
However, the one excuse that is accepted almost always is misinformation provided by the IRS. This happens when you call the IRS for advice and the representative provides you the wrong advice.
Unfortunately, proving this isn’t always easy. You will need to have a copy of your response that you submit alongside your letter. However, misinformation isn’t the only reasonable cause that can remove a penalty. Here are some other reasonable causes that might work:
- Death or serious injury within your family
- Natural disasters, like tornados, hurricanes, fires, and floods
- Making a mistake with your tax return, like sending it to the wrong address
In addition to an explanation, you will also need to discuss the penalty being removed and detail of the circumstances explaining the right for removal. If you need help writing your penalty abatement letter, check out this article here.
File a Form 843 to Request an IRS Penalty Removal
Once you write your letter you will need to print out Form 843. Fill it out properly, attach it to your penalty abatement letter, and send it to the IRS. You can find out more about this form here.
Once you submit your form the IRS will send you a response in the mail telling you whether the penalty will be removed or not.
Want More Content? Keep Reading
We hope this article helped you answer the question, How do I request an IRS penalty removal? As you can see, just because you submit a request doesn’t guarantee that you’ll get the penalty removed.
However, as long as you have a reasonable cause and properly write your letter and form, then you should be in the clear. Plus, you can always apply for an appeal if it’s rejected.
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