You may already know that a small delinquent tax debt can compound into an unmanageable amount within a short period of time. The reason is because of Penalties and Interest. Penalty Abatement (or Reduction) is one of the key services we provide and also one of the key factors toward helping you to get your tax debt resolved in as short a period as possible.
To get penalties abated or eliminated, you will have to show that you had a good reason for not paying your taxes. Common reasons include:
- Death of a family member
- Serious health problem
- Bad or erroneous financial advice
- Flood, hurricane, fire or other natural disaster
- Theft of funds, including embezzlement
- Lost or destroyed records
- Divorce that caused extreme stress and deteriorated your financial condition
- Unemployed for an extended period of time
- On a fixed income or retired
- Caring for another person and the financial strain this is placing on you
There are an infinite number of reasons, of course. But these are the most common.
Your application for a Penalty Abatement will be reviewed by a Revenue Officer and it is entirely up to the discretion of this Officer to make the final decision. For this reason, it is critically important that you present a well-prepared and well-documented application package. At Authority Tax Services. we are experts at preparing application packages that look professional and well-thought out.