An affordable tax debt amount can become huge when you include IRS penalties and interest. Nevertheless, it's possible to remove IRS penalties and considerably lower the tax debt amount. If any of the scenarios caused the tax debt, you have a case for penalty abatement and you must get in touch with a professional right away: Natural catastrophe, tax records lost or destroyed, set income (or retired), victim of theft, victim of bad monetary advice, or victim of serious health problems.
The most common IRS charge relief program used is called "Reasonable Cause". The Internal Revenue Manual offers the following meaning. "Reasonable cause relief is normally granted when the taxpayer works out normal business care and prudence in determining their tax responsibilities however is unable to abide by those obligations."
Basically, that indicates something has taken place beyond your control that has actually triggered you not to submit or pay your taxes in a prompt way. You also have to show that you (the taxpayer) took reasonable actions to "counter" the occasions and were still not able to pay and or file prompt.
The following list is drawn from the IRM or Internal Revenue Manual that provides the guidelines of what IRS representatives are advised to look at when considering penalty abatement:
Documents will be the bulwark of your case. Offer as much proof of what you are arguing as possible. The "third party" evidence you produce the much better the opportunities for relief.