Criteria

• In certain instances, the IRS will abate the penalties assessed on your tax. A penalty can be abated if the taxpayer can demonstrate that he had a reasonable cause for filing late or paying late. Common acceptable reasons for penalty abatement include incarceration, illness, overseas travel, death and military deployment. The IRS will judge your situation based upon its merit and decide if you acted with due diligence in your efforts to file or pay your taxes in a timely manner. Before granting your request, the IRS will also review your prior tax filings to determine if you normally take reasonable care to adhere to IRS guidelines. Unlike penalties, interest can never be abated for reasonable cause. Interest can, however, sometimes be abated for taxpayers who qualified for a military deferment, were assessed an erroneous refund, were assessed an interest amount not allowed by IRS statute, were attributed processing delays by the IRS or whose tax assessment was made in an untimely manner.
  
  

Process

• To request an abatement of penalties or interest, complete an IRS form 843 for each tax year in which you are requesting an abatement. The form and instructions can be downloaded at the IRS website or ordered by calling 800-TAX-FORM. Be sure to check the appropriate box to indicate the type of tax you are abating (income) and include the appropriate year. Also, in the last section include an explanation of why you believe your claim should be allowed and attach any substantiating documentation to form 843 .Mail the form to the IRS office which processes returns for your area.
  
  

Considerations

• Making a mistake on your return is not generally considered a reasonable cause for having penalties abated. If, however, you can show that you attempted to correct the mistake in the prescribed amount of time but were unable, then the IRS will consider your request.