How does an abatement work?

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How does it work?

When can an abatement be filed for late payment?

What is considered reasonable for filing one?

Ask the Experts - Extension - Sept 2023

evelynmAnswer

Employee Tax Expert

Hello:

This has been a hot topic this year. When the IRS waives a penalty it is called abatement. If you are unable to get the penalties waived and cannot afford to pay in full it may benefit you to enter into an installment agreement to make manageable monthly payments. You can also try to reduce the actual amount of tax you owe by making an offer in compromise.

The following link should help you through this process: https://turbotax.intuit.com/tax-tips/tax-payments/video-irs-penalties-for-abatement/L0D9OI6ZO

Have an amazing day. Evelyn M (CPA 20+ years). I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer".

evelynm

Answer

Employee Tax Expert

Hello:

The following link should help you through this process: https://turbotax.intuit.com/tax-tips/tax-payments/video-irs-penalties-for-abatement/L0D9OI6ZO

Have an amazing day. Evelyn M (CPA 20+ years). I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer".

Terri_G

Level 3

You may qualify for penalty relief if you demonstrate that you exercised ordinary care and prudence and were nevertheless unable to file your return or pay your taxes on time.

Examples of valid reasons for failing to file or pay on time may include:

Fires, natural disasters or civil disturbances
Inability to get records
Death, serious illness or unavoidable absence of the taxpayer or immediate family
System issues that delayed a timely electronic filing or payment

The IRS may reduce or remove some penalties over the phone. Call the toll-free number at the top right corner of your notice that you received assessing the penalty to request penalty relief for reasonable cause and have supporting documentation.

Have this information when you call: