You CAN Reduce IRS Penalities
The IRS has over 148 different types of penalties they can hit you with. And the worst part is that the IRS can also charge interest and additional penalties on the original penalty.
Penalties can be such a high percentage of the total amount owed to the IRS, it usually makes sense to consider requesting the IRS to reduce all penalties to ZERO.
IRS penalties can often be reduced to ZERO if you have REASONABLE CA– USE. What makes up REASONABLE CA– USE you ask? Reasonable Cause is based on all the facts and circumstances in your situation. According to the IRS, they will consider reasons that establish that all ordinary business care and prudence to meet Federal tax obligations were met. In our experience as tax negotiations with the IRS, it depends. Depending on the circumstances, almost anything may qualify as long as it’s reasonable.
The IRS has abated penalties for medical reasons, bad accountants, and ignorance of the tax laws, ex-spouses, helping to provide care for a loved one, military call-ups, fires, floods, alcoholism, drug abuse, death and even for relying on IRS advice.