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In addition to the "Offer in Compromise" the IRS offers another very effective program for reduction of an outstanding tax debt. If there were circumstances beyond your control that prevented you from paying your tax debt and led to delinquency, we can challenge the penalties and interest that have built up and negotiate them down. Relief from penalties falls into four separate categories. They are:
Reasonable Cause - mistake made by the taxpayer, ignorance of law, death, serious illness, unavoidable absence or divorce.
Statutory Exceptions - simple or complex legislative tax code changes.
Administrative Waivers - undue hardship, fire, flood, natural disaster, bad legal/tax advice.
Correction of Service Error - mistakes made by the IRS.
Because relief from accrued penalties and interest is based more on stated representations rather than financial hardship, terms for a successful penalty abatement are very specific. More so than any other, this program involves a great deal of skill to successfully navigate the IRS protocol and bring a benificial resolution. When applied correctly and effectively, results are substantial; savings are usually in the thousands of dollars for the average taxpayer.
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