Delinquent tax returns can lead to some very undesirable penalties for the taxpayer, whether they are an individual or a representative of a larger organization. Unless the delinquent taxpayer is able to provide some sort of reasonable cause for their late or unfiled tax return, they will surely face some sort of penalty. It is sometimes possible to qualify for an IRS abatement of penalties if the taxpayer is able to prove reasonable cause. This is determined on a case by case basis, however, and the Internal Revenue Service will always take all the relevant facts and circumstances into consideration.

When a taxpayer believes they will qualify for an IRS abatement of penalties, they must submit their request in writing. The document that they submit must include a declaration that their statement is being made under the penalties of perjury, as well as a detailed account of all the relevant facts alleged as the reasonable cause. The written statement must also come with supporting documentation that explains what type of delinquent tax returns led to the penalty being charged (for a late filed return, an incomplete return, or both). They must also explain what prevented them from complying with the law.

When an individual or organization has delinquent tax returns, they can qualify for IRS abatement of penalties if they are able to effectively explain what prevented them or their organization from requesting an extension of time to file their return. They must also explain how they were not neglectful or careless, but actually exercised ordinary business care and prudence. And finally, they must explain what steps were taken to prevent the same situation from occurring in the future.

In many cases it is preferable to hire Tax Relief Specialists to handle all the details of a request for IRS abatement of penalties. These cases can be hard to prove and the Internal Revenue Service has very stringent policies, so it helps to get as much help as possible.