To start: What is abatement?
The IRS offers to eliminate penalties in many situations. If you are assessed a penalty, you should always file for abatement. The IRS will eliminate the penalty if you have a good excuse why you were delinquent with your taxes. Certain abatement requests are automatic, such as relying on IRS advice. The IRS abates over 90% of the abatement requests submitted by my office.
Form 943 is a single page and is easy to fill out. One trick to getting accepted: keep your explaination to three sentences or less.
I have other accounting firms ask me to file their abatements. I see many more firm not file them ever. This is low hanging fruit, folks. If you have paid a tax penalty, ask you accountant to file for abatement or contact my office.
The one downfall to abatement is that you must pay the penalty first and have it refunded. Still, you have to pay the IRS anyway, so you may as well file for a little back.
Have a good weekend.
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