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.