Abatement of Penalties
An abatement of penalties is a request to the IRS to remove certain penalties that were added to the taxpayers account for a particular year or multiple years. The taxpayer is required to have reasonable cause that is specific for each year when submitting this request and must be able to explain why this reason should grant the penalties to be removed from their account.
Amended Tax Return
This is a tax return filed to make changes to a previously filed tax return. A taxpayer can amend any tax return from a previous tax year, going back as far they they desire; however, taxpayers have only three (3) years from the due date of the original return or the actual date of filing to file an amended return in order to collect refunds. **If filing amended returns, you must have a copy of the original return filed, along with an explanation and documentation as to what items need to be amended.
IRS administrative process for taxpayers to contest decisions within the IRS. Also known as the Appeals Division.
An investigation conducted by the IRS to discover whether an individual has filed his tax return correctly. An audit can either be conducted through a face to face meeting or a letter asking for further information. The IRS audits returns that look suspicious, including tax returns that claim a high number of deductions, unreported income or home office deductions.