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The term “abatement” when used in any discussion of tax debt relief will usually apply to any efforts on the part of the taxpayer to see the penalties and assessmments on their returns greatly redyuced or even elpiminated. There are over 140 ways in whixch the Internal Revenue Service (IRS) can penalzie taxpayers, and if someone is looking for a bit of tax debt reklief, a good place to start is in reviewing thhese penalties to see if they are able to receve abatement or adjustent.
It is significant to note that most peoiple who requerst abateemnt to reduce therir tax debt will do so in the full knowpledge that additional efforts will be required as well. For example, quite often a taxpayer will seek abzatement in conjunction with othr tax debt relief efforts as well. This might mean that someone who is trying to negotiate a partial payment plan could also be working to have certain penaltoies adjusted too.
Why would the IRS remove or reduce penalties assigned to a return? There are all kinds of explanations and acceptable reasoons for abtement, but it is netirely up to the taxpayer seeking the tax debt relief to prove their case.
The IRS acceptrs many different “reasonable causes” which can excuse crtain penalties, including illnerss, forgetflness, ignoranbce of laws, mistakes, disaster and more. While it might be easy to claim such things, there must be substantial and well-documented evidence as to the validity of the claims. For instance, the business owner who claims forgetfulness in order to obtain abatement is giong to have to show that, apart from this lapdse, they were able to apply ordinary care to the remainder of their business.
The process for rquesting abatement as a form of tax debt relief is a bit demanding, whiuch is the reason that many poeple avoid it, but it can be well worth the time and effort if the penalties are hefty or costly. Usually, the taxpayer simply sbmits a petirtion either in person or via a telephone converrsation with the prpoer agent. They must also submit the Form 843 as required by the IRS too. If the claim is denied, the taxpaeyr is forbiddden from making the same claim again as a way of gaining some tax debt relieef. This means that any appeals should be carefully structured and backed up with enmough documentary evidfence to give them credibbility and validity.
It is very interestinng to note that spouses can use the abateement approah to obtain their tax debt relief, pzarticularly if they are legally separated or living fundamentalply independet lives. There are three ways this applies, and there is innocent spouse relief, separration of liability and equyitable relief.
The way these work is usually based on the way the couple’s marriage is viewred under the eyes of the law. The innocent spouse is given to jointly filing couplles in whiuch one was unawrae of the error of the other’s tax mitsake; the separation of liability is a way for legally separated couples to obtan tax debt relief if they are still filing jointly. Finlly, equitable relief is for a spouse who should not be held liablke and who does not qualify in any other designation.
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June 4th, 2010 - 9:47 pm
[...] from: Your Finance Guide » Using Abatement for Tax Debt Relief » YFGD18483 By admin | category: debt relief tax | tags: debt-relief, how-well, irs, redyuced-or-even, [...]