How Do I Handle a Penalty Abatement Letter
Many people suppose that once they receive a penalty from the Internal proceed Service that the issue is closed and there is nothing that they can reasonably do. The accuracy is that there is an whole scheme of checks and balances in put that allows you to question any and all penalties that are levied on your account. The key to challenging them is a penalty abatement letter. There is no magic set of keywords that will automatically get your penalties abated, but the following will cover a handful of commonsense tips that may result in your request being granted.
In general, a penalty abatement letter will be addressed directly to the coordinator who handles this sort of thing full time. Over the course of your letter, simply describe everything that has happened to you and why, and outline the unique status surrounding your economic position. Talk about why you ended up getting the penalties you did and above all else, be sincere. The folks in this department read these letters for a living, and they have heard every promising excuse a person can come up with to get out of paying these penalty fees.
Along with being candid, you want to talk about the impact these fees have had on your life, but don’t get too sentimental or too emotional. These folks comprehend that back taxes and penalty fees can have a devastating affect on people’s lives; they don’t call for tear-stained stories of adversity and woe. Including things like this won’t score you any points. In fact, a brief letter has been shown to be more effective than a 9-page, emotionally wrought tale of fiscal sorrow. The more direct and sincere you are, the enhanced off you will be when it comes to getting your money back.
In your penalty abatement letter, you want to talk about how you ended up in the fiscal hole you have found yourself in and you want to take responsibility for your location. If your letter comes off like a giant blame game where everyone else is responsible for your current situation, then you aren’t going to be very sympathetic and you likely won’t get your fees waved. If you sound like a person who has made a mistake, someone who understands what they did wrong, why it was wrong, and pledges to never do it again, you will be considered far more worthy of help out.
If your financial lack of money was because of an accident of some kind, try to provide copies of hospital bills, letters from your insurance company, or any other kind of documentation that shows just how thorny this has been for you and your family. It is extremely main that you only send copies of documents, never the originals. Again, stick to the facts and be direct. Try not to let your emotions get the best of you. These letters are accepted more often than not, but your chances will be greatly improved if you follow the advice above.
Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.
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