Removal Of Penalties
Reasonable Cause
Penalties may be removed or reduced if the Taxpayer has an acceptable reason for incurring the penalty. In practice, penalties are difficult to remove. If a Taxpayer wants to have a penalty removed or reduced based on having an acceptable reason, the Taxpayer must send the IRS a signed statement explaining the reason. Interest cannot be removed or reduced.
Specific Written Advice From The IRS
If a Taxpayer writes to the IRS and asks for advice on a specific issue, gives the IRS complete and accurate information, and the IRS responds and gives specific advice or a specific course of action to take and the Taxpayer follows such written advice in the manner outlined, the Taxpayer may request that the penalty be removed or reduced if the Taxpayer was subsequently penalized because the Taxpayer's reliance on the written advice.
A well devised plan for discharging tax indebtedness is important and almost impossible to achieve without the help of an experienced professional who understands the process or various processes that may be involved, what is possible and what is not, and the full range of remedies available. Remember, there are often multiple solutions to the settlement of a tax debt. As an attorney certified as a tax specialist, John Kachmarsky and the staff at the Law Office of John Kachmarsky have that experience and knowledge.
Contact our Charleston, South Carolina law office today to make an appointment for an initial consultation.
