| When you are in tax trouble, interest, penalties, and | | | | cause claim. |
| fines accrue during the entire period you owe. This | | | | If you received incorrect advice from a tax expert, |
| may seem foolish. If you could not pay the taxes | | | | you can claim reasonable cause. If you received |
| you owed, what makes the Internal Revenue Service | | | | advice in error from The Internal Revenue Service, you |
| think you can afford to pay all of these building fines, | | | | have a claim for reasonable cause. If you experienced |
| penalties, and interest? | | | | a disturbance beyond your control like a natural |
| The answer is simple. The IRS knows nothing of your | | | | disaster, fire, or casualty, these events make for a |
| personal situation. The fines, interests, and penalties | | | | reasonable cause claim. Experiencing an act of God |
| attached to your overdue taxes are automated. A | | | | justifies a reasonable cause argument. |
| computer generates the numbers and spits them out | | | | The Internal Revenue Service will, in reality, accept any |
| without regard. The IRS can, however, reduce or | | | | reason (even I forgot) as long as you can |
| eliminate these extra charges if you can show cause. | | | | demonstrate that you used reasonable business care |
| Reasonable cause, under Internal Revenue Standards | | | | and still were unable to pay. |
| can apply if you were ignorant of the law. If you or the | | | | If you receive an IRS notification for back taxes, you |
| Internal Revenue Service made a mistake in calculating | | | | can either write back requesting an abatement, or file |
| the amount of taxes you owe, you could apply | | | | Internal Revenue Service form 843. When you do |
| reasonable cause. | | | | this, it is really good if you can include a check for the |
| If you just plain forgot, you might still convince the | | | | back taxes, not interest, penalties, or fines. Indicate |
| Internal Revenue Service that your forgetfulness is | | | | that the payment is only for the taxes and not for any |
| reasonable cause to lower or eliminate the interest, | | | | of the interest, fines, or penalties. In this package |
| fines, and penalties added to your past due amount. | | | | include a copy of your back tax notification and any |
| Causes like unavoidable absence, serious illness, or | | | | proof that will substantiate your reasonable cause |
| death are good reasons to suggest reasonable cause. | | | | claim. Make a note on the check as well that the |
| The inability to procure records could justifiably delay | | | | payment is for taxes owed only. At the least, you will |
| your capacity to pay and be grounds for a reasonable | | | | stop accruing interest, because the tax is paid. |