Post by myTax Solutions on Mar 17, 2016 22:34:23 GMT
In general, the IRS will look at certain categories of events that it has determined to be good enough reasons to excuse a taxpayer’s failure to pay taxes on time. These categories reflect the IRS’s understanding that certain unfortunate events may have been unexpected and were substantial enough to excuse the penalties that they caused to be added to your account.
Overall, the IRS will look for certain categories of factors in order to evaluate your explanation. The IRS has listed specific factors on its website, but it can be helpful to think about these reasons in two much larger groups.
First, the IRS will look at whether the event could or should have been expected. Some events are completely unexpected, while others are nonetheless unfortunate, but can still be considered to be much more common or even predictable. For example, an event such as a large scale natural disaster will generally provide a much stronger reason than the inevitable enforcement of collections on a maxed-out credit card or ignored court-ordered payments. However, if the missed payments were the result of the same legitimate reason that caused your tax problems, then you may still be able to successfully get those penalties reduced.
Second, the IRS will look at how serious the effects or consequences were. This is another very important part of evaluating your request. For example, even if you lived in a place that experienced an unpredictable large-scale natural disaster, that will still be unlikely to be an acceptable reason for not paying taxes if you only experienced $50 in minor property damages. Therefore, the more substantial the consequences, the more likely it is that the IRS will consider the event as an acceptable reason for not paying taxes. When explaining what happened, make sure to include any and all documentation or records that you can find that will provide proof of the things that you have explained.
Overall, the IRS will look for certain categories of factors in order to evaluate your explanation. The IRS has listed specific factors on its website, but it can be helpful to think about these reasons in two much larger groups.
First, the IRS will look at whether the event could or should have been expected. Some events are completely unexpected, while others are nonetheless unfortunate, but can still be considered to be much more common or even predictable. For example, an event such as a large scale natural disaster will generally provide a much stronger reason than the inevitable enforcement of collections on a maxed-out credit card or ignored court-ordered payments. However, if the missed payments were the result of the same legitimate reason that caused your tax problems, then you may still be able to successfully get those penalties reduced.
Second, the IRS will look at how serious the effects or consequences were. This is another very important part of evaluating your request. For example, even if you lived in a place that experienced an unpredictable large-scale natural disaster, that will still be unlikely to be an acceptable reason for not paying taxes if you only experienced $50 in minor property damages. Therefore, the more substantial the consequences, the more likely it is that the IRS will consider the event as an acceptable reason for not paying taxes. When explaining what happened, make sure to include any and all documentation or records that you can find that will provide proof of the things that you have explained.