How do you get the IRS to drop penaties and interest fees?

Answer 1

You might get them to drop the penalties. The interest you'll have to pay.

Answer 2

The IRS will many times forgive penalty and interest fees if you can prove to them that it is unlikely they would ever collect on the debt and to impose the fines/penalty would cause the taxpayer "undo economic hardship".
A letter stating why you can't pay and that it would cause an economic hardship on you will probably work...if true.
Also, perhaps an offer in compromise, depending on how old the debt is, stating you can pay the tax, but not the penalty/interest.

Answer 3

write a letter to them explaining what happened (why you were late with filing/payment/etc.) be honest in your explanation. Tell them if something was out of your control or if this was your first time making a mistake or whatever the reasoning is and above all be curteous and say thank you for your consideration of this matter. If you have a good reason, they may drop the penalties. They do not drop interest.

Answer 4

First
Hire a tax attorney and then what the atty will do is allow the debt to get old as leaglly possible then settle at pennies on the dollar
I know of several business people who done that and never had problems ....but definelty hire a tax atty

Answer 5

Another winner in the vague questions category. The vague answer is "Pay all the penalty and interest, and they will quit bothering you about it.

Yellow pages, tax adviser.

Answer 6

That would depend wholly on what type of situation we are discussing and what amounts of $$ are in question....