If you owe money on your tax return, interest starts to accrue on the amount owed as soon as it is due. The good news is that there may be ways to reduce or abate the amount of interest owed if the interest has accrued because there were delays in processing. If you have already paid some of the interest, you can get some of that money back.
Like anything involving the IRS, claiming this money involves paperwork. You must also meet certain criteria and demonstrate that the fault was due to an error by the IRS and not your fault or some other cause. A tax resolution attorney from Whiteford Tax Defense can explain more about interest abatement in Richmond and help you with the process to reduce your tax penalties.
If you have interest accruing on a tax debt or a penalty due to an unreasonable error or delay by the IRS, you can have that interest removed or reduced. Although interest must be charged by federal statute, the IRS can reduce it if the fault is theirs and not the taxpayers’ or other fault, such as a mail delay.
Richmond interest abatement can be granted for refunds of $50,000 or less. The error must have been caused by a ministerial act (one that involves a procedural act) or a managerial act (one that involves a loss of records or act of judgement by personnel).
The IRS has six criteria for interest abatement. You must meet all six to qualify for interest abatement under the IRS abatement code.
Administrative decisions, rulings on tax codes, and activations of new computer systems are not managerial or ministerial acts.
The IRS may also abate interest in Richmond for financial hardship in conjunction with abating or reducing penalties. An attorney can explain how negotiations with the IRS can assist taxpayers suffering financial hardships. However, the IRS seldom reduces interest and penalties solely because of financial difficulties.
If you believe there was a procedural error during your tax return processing, or records got lost, leading to an unreasonable delay, you have the right to request that any interest that accrued during that time be reduced or removed from your taxes. An attorney at Whiteford Tax Defense can explain interest abatement in Richmond and what you need to do to qualify for this debt relief.
Our attorney will help you complete the necessary forms and obtain the information needed to show the error is due to IRS mistakes, not yours. Call our office today for an appointment to learn more about interest abatement and other tax information.