It is important for every taxpayer to know that though the IRS can incur penalties to delinquent taxpayers for reasons like delayed payments or lack of information reported, they are given the chance to argue with the extra charges incurred. What they can do is fill up Form 843 if they think they have the right to contest the incurred penalties or if they think that they have paid too much of their taxes and they want to be refunded.
If their claims will be found reasonable, the IRS can either partly eliminate the penalties or remove them completely and they can also provide refunds to appropriate taxpayers. But this will only be done after a due process. You must be therefore knowledgeable with the needed procedures to be done if you don’t have any idea, then better have a tax law attorney with you.
Below are some of the allowed possible reasons for making the mentioned petitions:
- To start with, if the reason for the incurred charges from the IRS is due to insufficient information, this can be contested for the reasons of damaged personal documents, if you have been sick or someone in the family died.
- Another allowed reason for tax abatement is when it is included in the statutory exception. This happens when a natural disaster occurs. Thus if you are charged by the IRS of penalty because of this, then you are qualified for tax abatement.
- Then, there is also the administrative cause. Administrative cause happens when it is the IRS people who are the reason for the delayed payment like they were unable to send the files on time or delays on the delegations of new regulations. It also means that though you have paid on time, it was not recorded right away due to the people responsible for the said task.
- When there are errors made in the part of the IRS people. As the taxpayer who is subject of the particular mistake, you can argue with their records by filing the form 1040X to amend the contents of form 1040.
As you can see, tax law can be really complicated and IRS is not the most forgiving. This is why, if you don’t want to attract the attention of IRS people, you should hire a lawyer to help you get through with some of the complicated legal terms about tax law.
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