If you owe the IRS money, you know how stressful it can be to try and manage your tax debts. Fortunately, the IRS offers two programs to help resolve unpaid taxes. However, the installment plan and Offer In Compromise programs may not be much help if the bulk of your taxes is due to IRS penalties.
Penalty Abatement Program
Tax debts can easily double or more when penalties for nonpayment are applied. Even worse, is that the IRS does not remove such penalties easily and often requires full payment of the original debt plus penalty fees. Once this happens, getting out of tax debt can seem impossible. However, the IRS does offer a program to help with penalties.
The Penalty Abatement program may be able to remove the additional fees caused by the added penalty. In most cases, you will be required to prove financial hardship in order for the IRS to lower or eliminate penalties and interest. Since the burden of proof falls on your shoulders the process can be difficult to navigate, but it is always worth a try. A little patience and persistence gets you a long way.