Q: What is a penalty abatement?

A: It is possible to challenge your penalties with the IRS. You can attempt to negotiate them down or even eliminate them altogether. There are many reasons that the IRS may be willing to give you a penalty abatement. Some of the most common would be a lengthy period of unemployment, a divorce, a serious illness, theft or fire, or even bad accounting advice.

It usually requires some skill to successfully go through all of the red tape at the IRS and get your penalty abatement, so it's prudent to get a tax professional to help you explain to the IRS why you deserve the penalty abatement, and to argue on your behalf.

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