Abatement of Penalties
The Internal Revenue Code authorizes the abatement of penalties for failure to file tax returns, failure to pay tax, and for other penalties, if any failure is due to reasonable cause, and not willful neglect.
Usually, if you exercised ordinary business care, and still, you were unable to file the return on time, the delay is considered due to reasonable cause. Also, a failure to pay may be due to reasonable cause if you exercised ordinary business care and prudence, yet could not pay the tax liability.
If the IRS determines that failure to pay or failure to file was due to reasonable cause and not willful neglect, the penalty will not be assessed. You would still be responsible, however, for the underlying tax owed plus interest due. We can help you obtain an abatement of your penalties due to reasonable cause and get a reduction in the amount you owe.