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