IRS Tax Penalties and Interests: Waiver Rules and Strategies

Your client may have received a shockingly huge tax bill from the IRS and now it’s time for you to rescue him from this ticking bomb. IRS sends tax bill with added penalties and interests, which can often be hefty. For instance a tax bill of $5,000 might have penalties worth $10,000.

While some of the charges are added automatically by IRS computers, others are imposed by IRS personnel if you’ve violated a tax code provision. The IRS asserts millions of dollars of penalties against taxpayers daily and it assumes you have accepted them until you respond.

Not all is lost, though. Using some effective abatement techniques, you can help your clients easily recover the substantial money they have lost due to interest charges and penalties. Reasonable cause is the key to success in cancelling penalties and interests from the IRS. However, it is important for you to know which of the penalties and charges may be waived, and how you can get them waived.

Get some practical tips, insights and tricks on cancelling penalties and interests. You will learn about different penalties, and the various forms and procedures used for requesting penalty and interest abatement, including the First Time Abatement for penalties. This session will focus on IRS factors for Reasonable Cause abatement, and the various circumstances under which interest on the taxes can be waived. You will also be given practical tips and forms for requesting penalty abatement.

Know which of the penalties and charges may be waived, and how you can get them waived

• The rules on waiver of penalties and interest
• Fraud penalties
• Accuracy related penalties
• Failure to file
• Failure to pay
• Failure to deposit
• Understatement of valuations
• The forms and procedures for requesting relief
• Requirements and procedures for First Time Abatement
• The factors for Reasonable Cause Abatement
• The procedure for requesting a refund of paid penalties
• Administrative options