| The Internal Revenue Service charges IRS Tax Debt | | | | Furthermore, taxpayers must provide evidence that |
| penalties and interest for failing to submit payment or | | | | they took reasonable steps to rectify the problem but |
| file a tax return by the appropriate due date. While | | | | still could not meet their obligations. |
| these charges are constructed to ensure proper and | | | | Under normal circumstances, it is difficult to prevent tax |
| prompt payment and submission of documentation, | | | | penalties via Reasonable Cause Relief. In addition to |
| they can add a substantial amount of debt onto the | | | | providing a strong case in defense of their prudence, |
| taxpayer's initial liability, oftentimes up to 50%. | | | | taxpayers must complete the following requirements |
| Depending on a taxpayer's financial situation, these | | | | before they can qualify: 1) a request for abatement |
| charges can be unreasonable if a taxpayer acts | | | | must be made (submitting Form 843 with a written |
| promptly but is simply unable to fulfill their tax liability. If | | | | statement, or submitting a verbal request); 2) paying |
| the taxpayer can demonstrate that the penalties and | | | | the entire liability, with penalties and interest is |
| interest accrued by their IRS Tax Debt are | | | | recommended (this is for simplicity's sake, as additional |
| unreasonable, the IRS may abate these additional | | | | penalties and interest may accrue while the petition is |
| charges, meaning, the charges may be reduced, | | | | being considered, entailing additional petitions for |
| terminated, or simply taken off and reduce tax debt. | | | | abatement). |
| The process by which a taxpayer may prevent tax | | | | After the request is filed, an IRS Appeals Officer, who |
| penalties and interest, entitled, Reasonable Cause | | | | proceeds to assess the taxpayer's case, usually |
| Relief, is an option for taxpayers who can show that | | | | contacting the individual by phone or fax to verify or |
| something occurred, outside of their control, causing | | | | expand on the information provided with the original |
| them to be unable to meet their tax obligations. | | | | request. |