July 18, 2024

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The beginning of the year can be a special time for some people since it normally symbolizes a brand a new start. For others, when they think about the IRS and the beginning of the year tax time, it can be a challenging time. This is normally because taxpayers have a certain liability that has to be paid each year and it may be much stiffer than one may think. Fortunately, for this group of people, there may be some relief in sight that they may or may not be familiar, which involves IRS Penalty Forgiveness.

IRS Penalty Forgiveness is an IRS tax provision that contains specific requirements that have been set for those that need this type of financial relief. For those of you who may have an interest in taking advantage of these provisions, here are some things that you should know. 

  1. Provisions Consider Extenuating Circumstances Only

– First of all, one of the first things that you need to remember is that the guidelines do not consider not having the funds to pay only as part of this forgiveness program. Simply put, if the reason for not paying your tax liability by the April deadline is due to the lack of funds, the penalty for not paying would still apply to you as the taxpayer.

  1. If you do not pay the amount of your tax liability by the April IRS deadline, you will need to have a reason that is considered to be sound for not making your payment on time. Regardless of the payment option that you should use, (by mail, online deposit, etc), there are provisions made for exceptional situations. Here are some of the most common reasons that have been published by the IRS. 

– Unexpected disturbances in life that include the following: natural disasters, casualty, fire along with other types of disturbances

– The taxpayer did not have the ability to obtain the necessary tax records

– The Taxpayer or a member of the taxpayer’s household had the following to occur during that tax year (i.e. Serious illnesses, absences that were unavoidable, this is defined by Irs), incapacitation or death.

– Other reasons that will establish the fact that you have used all of the means for ordinary available to you to file and meet the financial obligations that you are required to meet. 

  1. Documentation Required to Meet the Requirements Set by the Guidelines

When you make this claim, you will also be required to back up the reason that you are providing to IRS. For instance, if you are filing a claim that states that you had a death in your family, you need to provide the proof of these statements in the form that the IRS requires. 

  1. Interest Removed

If you are approved for this tax forgiveness provision, you will also have the interest that is normally added to your financial liability removed too. So, it is important that you apply for these exceptions if you can apply. This is especially the case when there is a huge amount of interest added to the amount that you already owe.