Penalty abatement is asking the IRS to forgive, or write-off, the penalties they have assessed.
The IRS is willing to forgive penalties in a variety of situations such as when you have reasonable cause, you relied on bad advice given to you by the IRS or you were part of a natural disaster or catastrophic event.
The IRS will only consider reducing penalties, but never the tax or interest. However, interest will be recalculated on the original tax and reduced penalty amount if penalties are abated in part or in full.
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