Local Law Firms Home > Taxation Tax Law Overview > IRS Penalty Issues IRS penalty charges and interest may incur for a number of different reasons. The combined charges for penalties and interest are frequently a much higher amount than the original tax debt, an amount that the taxpayer already had difficulties paying.
Certain taxation laws allow for the removal or reduction of these charges if there was a situation that can be considered “reasonable cause.” The IRS may reduce or completely get rid of IRS penalties in various situations, including but not limited to: death of severe health condition of a family member, extended military service, work completed by an incompetent accountant, drug or alcohol problems, physical or mental illness, or the fact that you were originally misinformed by written advice from the IRS, which was the original cause of your penalty. |