When the IRS assesses tax debt penalties, those penalties are added automatically to the taxpayer's account by the IRS computer system. Because of this, penalties are frequently added to a taxpayer's debt without taking his or her individual circumstances into account. And as you may have already discovered, IRS Tax Penalties can turn a fairly manageable debt into an overwhelming burden pretty much overnight.
A proper Penalty Abatement requires very specific wording and a solid understanding of the relevant IRS Code and Procedure. Even if you had a good reason for not paying your taxes on time, it is often extremely difficult to get these penalties removed without professional help.
In 2012, the IRS issued over $26,864,993,000.00 (that's 26.9 Billion Dollars) in penalties!
Requesting a Penalty Abatement requires that you have a good reason. What qualifies as a good reason?
It depends on the circumstances involved with your particular situation.
The procedures for deciding who qualifies for a Penalty Abatement and for what reason seem to differ in each case.
The best thing you can do is to request that the IRS abate your penalties by providing the circumstances surrounding your situation.