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.
One of the rights you have under this IRS statute is the fact your penalties can be waived. In order to have your penalty waived (abated), however, you need to show the IRS that you acted reasonably and in good faith. Or, you must show you relied on an IRS employee's incorrect advice.
The IRS will also waive any applicable interest that is a result of any incorrect information of an IRS employee that you rely upon.