Tuesday, November 18, 2008

Tax Term of the Week

Abatement of Penalties-An abatement of penalties is a request to the IRS to remove certain penalties that were added to the taxpayer's account for a particular year or multiple years. The taxpayer is required to have reasonable cause that is specific for each year when submitting this request and must be able to explain why this reason should grant the penalties to be removed from their account.

Further Reading:
Penalty & Interest Abatement
Why You Pay Interest

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