Do I Have Reasonable Cause For Penalty Abatement

You may ask yourself "do I have reasonable cause for penalty abatement" with proper reasoning.

If you are not directly responsible for missing payments, or don't have to pay additional taxes on your current tax bill why would you? The government is not some evil juggernaut trying to steal your hard earned money, interest is a deterrence to straying from the tax law.

Part of the tax law protects you the same as an agreement, and although you do not sign the contract, regardless it protects you. The "contract's" answer to your question of "do I have reasonable cause for penalty abatement" is clear if you fall into certain criteria.

Your health could lead to a direct dismissal on interest owed to the government. In all actuality, it does not even have to be your health that is the reason for penalty abatement! In returning to the contract scenario, if you can prove your health, or the loss or health complications of a child for example prevented you from paying you may have a solid case.

Of course they will not just take your word and pat you on the back, you should be prepared with death or medical records. If you had a heart attack it would be tough to pay your bill, the government will understand especially if you're in the hospital.

Health is not the only way to achieve a penalty abatement. Say your car died, for example, and is a need for working to support your livelihood show a copy of your bank records if requested, and you may be given a free pass.

If you had no knowledge toward what you were doing, the IRS makes a mistake, provides incorrect advice, or is not clear on something you may answer "do I have reasonable cause for penalty abatement" yourself. The easiest way to judge this is to go over your records, and if you find a mistake you can point it out.

The best way to better your chances for penalty abatement qualification is to get something in writing. Say you wrote for help or assistance, copy your letter and the IRS response and use that to your benefit.

In the long run, you will need some type of proof for any claim. It also shows, when you ask yourself "do I have reasonable grounds for penalty abatement", a little homework can save you from major headaches and higher than needed penalty's and fee's.