Tax issues and penalty abatement?
September 30, 2008
Renee S asked:
I owe the IRS a fair amount of money on back taxes. I am paying on them but recently asked for an abatement on the penalties. It was denied. I am going to appeal. Any suggestions for what might get my appeal approved?
I owe the IRS a fair amount of money on back taxes. I am paying on them but recently asked for an abatement on the penalties. It was denied. I am going to appeal. Any suggestions for what might get my appeal approved?
2 Responses to “Tax issues and penalty abatement?”
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October 1st, 2008 at 2:11 am
A really good reason for being behind. Such as, “I was in a coma” or “I was stranded on a deserted island”.
Anything short of a life or death excuse will probably be denied.
Someone I know tried “I’m just really bad with paperwork”. I am sure the IRS got a laugh out of that one.
October 2nd, 2008 at 8:30 am
you could say that it was an “honest” mistake and that you’ve always paid your taxes timely in the past. you could try saying you had a fire or flood and lost many documents.
if it was for your own business, you could perhaps say that youve had a lot of turnover with bookkeepers.
if it was already denied however, chances are they wont overturn their decision. keep paying b/c the penalties and interest are accruing every day.