This week, Tax Defense Network is highlighting Penalty Abatement in its 12 Weeks of Resolution.

When faced with a tax bill, the last thing taxpayers want to see is their tax bill growing larger. Unfortunately, the IRS charges penalties for the failure to file as well as the failure to pay taxes. Each month the tax debt goes unpaid or the tax returns go unfiled, the IRS will charge penalties and interest.

Penalties and interest can significantly increase tax debt. It adds up, particularly if the tax debt extends over several years. For those that qualify, there is a penalty abatement waiver. If a taxpayer can prove that they had reasonable cause for not filing or paying their taxes, the IRS will remove the penalty and associated interest.

The IRS has certain criteria that must be met before penalty abatement is granted. Reasonable cause criteria include: death, serious illness, unavoidable absence, fire, natural disaster, inability to obtain records, theft or embezzlement, erroneous advice from the IRS or tax professional and more.

After filing incorrectly, being audited twice, getting a refund by mistake, and being, in her words, “strung along with no results” by another tax representation firm, Tax Defense Network client Nancy H. found herself with almost $24,000 in tax debt.

“Once I called, [Tax Defense Network] reduced my penalties and stopped the IRS collections quick, fast and in a hurry,” Nancy says. “I am so relieved.”

After quickly stopping IRS collections actions against her, Tax Defense Network’s Foxhound legal team considered Nancy’s options for penalty abatement. Because the IRS made a mistake, Nancy seemed a good candidate for penalty abatement. They then negotiated a reasonable Installment Agreement with the IRS, providing her with a comfortable tax debt resolution.

It is important for taxpayers to remember that applying for penalty abatement does not necessarily mean it will be granted. It is the IRS’ decision alone whether or not it will grant abatement.

Tax Defense Network is a national tax debt relief company whose team of licensed tax professionals, enrolled agents and CPAs has over 35 years of combined experience. Since its founding in 1997, Tax Defense Network has helped to resolve over $120 million in client tax debt. Tax Defense Network has an A+ rating from the Better Business Bureau.