In some cases the IRS will reduce or eliminate a taxpayer’s penalties on their debt. However, pursuant to Federal Law, the taxpayer must be able to show “reasonable cause” before the IRS will agree to penalty abatement. Reasonable cause means regardless of the taxpayer’s “exercise of ordinary care and prudence,” he was unable to file his tax return or pay his taxes on a timely basis. Generally, the success of penalty abatement depends on the taxpayer’s past history of filing their tax returns and paying their taxes.
Please call the Law Office of Huntsman | Lofgran, PLLC at 801-474-0031 or email Wasatch Front/Salt Lake Tax attorney Michael Lofgran for your free no-obligation, tax consultation.