Penalties, Penalties, Penalties: Penalty Abatement is when the IRS reduces the penalties from the assessed debt amount. Don't think this excuses you from paying your taxes! This will simply remove some or all of the Penalties and the interest associate with it owed on the account. Don't forget, according to the IRS, you are responsible for these Penalties until you can prove otherwise.

Adding up: When penalties are added to your debt, they come with their own set amount of interest. So picture this: There's already interest that will accrue on your account. Add that interest to the penalties and don't forget to include the interest associated with the penalties. Your debt will skyrocket, and all because you were sick or possibly dying in the hospital!

How do you apply?

- Give the IRS your reason why you were unable to pay the debt or file your tax report. Use details and be specific.

- Round up all the paperwork proving exactly why you were unable to pay your debt. This needs to be detailed information. (Medical Insurance information, Medical Bills, Doctor's Notes.)

- Fill out form 843 (Request for Tax Abatement)

Facts And Circumstances The IRS Will Review:

- Your Reason for Delinquency

- Your History of Compliance with the IRS (Have you paid your taxes consistently?)

- Whether the circumstances were beyond your control.

Recovery Time: Now you know how to get rid of those penalties and get your taxes paid. It's bad enough that you were seriously ill and you are trying to recover. Don't let the IRS bully you by forcing you to pay more than you owe. Follow the steps provided and get back on the fast track to being IRS Debt-Free.

Now you have the Smoking Gun...Use it!