Example Of A Penalty Abatement

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Penalty Abatement and other Tax Relief topics.

What is an example of a penalty abatement?

Example Of A Penalty Abatement

Jane Widget had an unpaid tax bill totaling $30,000, including $7,500 in penalties. Jane entered into a tax resolution program known as an offer in compromise.

The IRS wanted to enter into an installment agreement whereby Jane would repay the entire $37,500. Jane, however, wanted to have the penalty abated due to her husband passing away three months ago.

Jane prepared a request for penalty abatement letter and submitted it to the IRS. The IRS agreed to it. Jane and the IRS entered into an Offer in Compromise agreement whereby Jane repayed a total tax bill of $30,000.

Jane had her penalty abated.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Tax Relief Tip Site? Request a Tip Now!


Guru Spotlight
Ray Lokar