Many individual taxpayers and business owners find themselves facing late penalties because they didn't get their tax returns completed on time. It is sometimes possible to qualify for IRS abatement of penalties, though, which basically eliminates the penalties for those who are able to prove a reasonable cause. When someone fails to file their returns in a timely manner without reasonable cause, however, they are likely to be penalized under section 6652 of the Internal Revenue Service Code. The penalties for unfiled tax returns or late tax returns are determined on a case by case basis depending on the facts of the situation.



In order to qualify for IRS abatement of penalties, it is necessary to make a request in the form of a written statement, which must be done in a very specific way. This written statement must include a declaration that the statement is made under the penalties of perjury, and it must also include a detailed account of all the facts that the taxpayers alleges as reasonable cause. When completing the documentation it is often beneficial to work with a tax relief specialist who is knowledgeable about the law and experienced with the Internal Revenue Services. The tax relief specialists can draw up a letter that contains all the supporting documentation and addresses all the required items.

An IRS abatement of penalties request letter must contain the reason the penalty was charged, and it must explain what caused the organization or individual to have unfiled tax returns. This includes what prevented the individual or organization from requesting an extension of time to file the return, and it should explain how they were not being neglectful or careless. The letter should also explain what steps were taken to prevent the same situation from occurring in the future.

With the help of a tax relief professional, it is more likely that an individual or organization will qualify for an IRS abatement of penalties. It's just a matter of presenting the case with a well crafted letter and a good explanation.