Getting Out: IRS interest charges are ridiculous. They were first issued to punish those who didn’t comply with the law. Now they’re used as a source of income for the IRS. Why else would interest on tax debts be so ridiculously high? When your Tax is wiped out, the associated interest should go away as well. But that doesn’t always happen.

Tax Code Rules: The Tax Code says that interest should be wiped out for the following reasons:

Incorrect Refund: The IRS sent you a refund incorrectly, and now it wants the money back PLUS interest? That’s not only unfair, it’s illegal. Computers sometimes automatically generate tax returns to the wrong person. You are entitled to have the interest removed (”Interest Abatement”) as long as you didn’t cause the wrongful return to be issued. But remember, the IRS can legally charge interest if you don’t return the money on time once you know about it! So turn that money in promptly, even if you already spent it.
Wrongful Charge: Even the IRS makes mistakes. Sometimes they charged you interest, even if you didn’t owe it. This can happen even if you paid your taxes on time or didn’t even owe taxes that interest could be charged on.
Delays: If you receive a notice late, the blame doesn’t fall to you. It falls to the IRS. So if you got a 30 days notice 90 days late, the penalties that accrued for the 60 days could be abated.
Disasters: If you filed late because there was a natural disaster that prevented you from filing on time, you can qualify to have the interest abated on your account.
No Notification: Did you not receive notice that the taxes were due? You might qualify to have the interest abated.

Requesting Interest Abatement:

IRS Error- If the IRS made the error (wrongfully charged you or sent an incorrect refund) send a letter to the your local IRS service center. Include the details. Let them know that the IRS wrongfully charged you or sent a refund to the wrong person. It helps to also send supporting documents.

IRS Delays- This is even harder to qualify for. The IRS rarely abates interest unless they are directly at fault. But if you want to request interest abatement because the IRS delayed in notifying you,use Form 843 “Claim for Refund and Request for Abatement.”

Double Check: Take a good look at your IRS Debt and bills. If you already paid your Tax Debt, the interest should be gone as well. And if it’s not, get to work! You shouldn’t have to pay interest if you don’t owe it.

Now You Have The Smoking Gun…Use it!

Richard Close was an IRS-Hitman. He was a revenue officer who took out anyone that owed the IRS money. He left that behind and now helps thousands of Americans beat Uncle Sam and save thousands of dollars. The IRS-Hitman can help you with your tax debt problems. He has partnered with Tax Defense Network to offer free advice and tips to get you tax debt settled one and for all with the IRS. Visit at: http://www.irs-offer-in-compromise-hq.com or http://www.taxdefensenetwork.com or call 1-888-248-9058.

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