How to Get the IRS to Forgive Your Penalties and Interest - Tax Hack
Published: 2019-07-26
Status:
Available
|
Analyzed
Published: 2019-07-26
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The IRS will likely waive penalties 80% of the time for taxpayers with a good history of timely filings and payments, especially with a first-time penalty waiver.
"from my experience I'll say it's gonna work eighty percent of the time that's if you have a good history and a lot of times if you've always timely filed or timely paid you know there's a first time penalty waiver and it'll even work greater than eighty percent of the time"
Pending
Taxpayers with a history of late filings or payments have less than a 10% chance of having IRS penalties waived, even with reasonable cause.
"if you have a bad history of late filing or late payments I would say even if you have reasonable cause it'll probably work less than ten percent of the time"
Pending
Attempting to resolve IRS penalties informally by phone with a reasonable cause excuse is a viable first step.
"so you could do this is gonna be super informal you know you get the letter it says you can contact us here at this specified phone number for your case try giving them a call try to resolve and give you a reasonable cause of your excuse by phone"
Pending
To increase the probability of penalty abatement, the first attempt should be by phone, as IRS agents have discretionary power.
"if you want as many attempts as possible to just increase the probability of this working for you I would say first okay you get the letter try by phone because the IRS agents they have the power to just make that decision at that discretion at their discretion by phone"
Pending
If an initial phone call to the IRS for penalty abatement is rejected, a second attempt can be made by responding to the penalty letter in writing, citing reasonable cause.
"if they say no well okay you know that attempt got rejected so what you can do is you got that letter the penalty you can respond to the letter in writing informally just citing you know your reasonable cause you know why you should not be subject to this penalty and just mail that it"
Pending
The official penalty abatement form is the third and final resort for waiving IRS penalties, after informal attempts by phone and letter have failed.
"if that was your second attempt and it failed then what you can do is the official penalty abatement form and that's gonna be your last resort because you tried informally by phone you tried informally by responding to a letter and your third one will be the official penalty abatement form"
Pending
The IRS is generally more lenient than state Departments of Revenue when it comes to waiving penalties, especially for individuals with a good history of timely payments and filings.
"from what I can say is that the IRS they are the most lenient when comparing to the state and they're morally neither very lenient actually when it comes to people with good histories and just a history of timely payments timely filings"
Pending
State Secretaries of State typically have a zero-tolerance policy for late filings or payments, making penalty waivers unlikely.
"Secretary of State is much more harsh or not as lenient a lot of Secretary of State's they have a zero-tolerance policy so they're not gonna accept any excuses you didn't do this on time or make us pay on time you're gonna penalize zero tolerance zero tolerance policy"
Pending
If a taxpayer has a good history of timely filing and payments, the IRS is likely to waive a first-time penalty around 80% of the time, potentially even higher with a first-time penalty waiver.
"from my experience I'll say it's gonna work eighty percent of the time that's if you have a good history and a lot of times if you've always timely filed or timely paid you know there's a first time penalty waiver and it'll even work greater than eighty percent of the time"
Pending
If a taxpayer has a bad history of late filing or payments, the IRS will likely grant penalty abatement with reasonable cause less than 10% of the time.
"if you have a bad history of late filing or late payments I would say even if you have reasonable cause I mean it'll probably work less than ten percent of the time"
Pending
To increase the chances of getting an IRS penalty waived, taxpayers should first attempt to resolve it by phone, as agents have discretionary power.
"if you want as many attempts as possible to just increase the probability of this working for you I would say first okay you get the letter try by phone because the IRS agents they have the power to just make that decision at that discretion at their discretion by phone"
Pending
If an initial phone call to the IRS to waive a penalty is unsuccessful, the next step is to respond to the penalty letter in writing, citing reasonable cause.
"if they say no well okay you know that attempt got rejected so what you can do is you got that letter the penalty you can respond to the letter in writing informally just citing you know your reasonable cause you know why you should not be subject to this penalty and just mail that it"
Pending
The official penalty abatement form is the third and final attempt to waive an IRS penalty, following unsuccessful informal attempts by phone and written response.
"if that was your second attempt and it failed then what you can do is the official penalty abatement form and that's gonna be your last resort because you tried informally by phone you tried informally by responding to a letter and your third one will be the official penalty abatement form"
Pending
The IRS is considered more lenient with penalty abatements than state tax departments, especially for individuals with a good history of timely payments and filings.
"the IRS they are the most lenient when comparing to the state and they're morally neither very lenient actually when it comes to people with good histories and just a history of timely payments timely filings"
Pending