What is Abatement?
Taken from the French word abattre and the Latin word battere, both meaning “to beat,” abatement in its simplest terms means “to beat something down.” When discussed in terms of finances, abatement is the beating down or lessening of debt or taxes. Also known as a tax cut or tax relief, an abatement is a helpful measure used to reduce the amount of taxes or debt a party must pay on his or her personal property, business, or inheritance. An abatement can help a financially struggling party or organization that is unable to meet financial obligations. An abatement of debt and legacies provides protection when a person dies and does not have enough money left in his or her estate to meet all financial obligations. If a person files for abatement of debt and legacies, the estate’s executor then asks for leniency in meeting the debts. Interest payment, tax amounts, and debt totals can be abated or lessened to help the estate meet the debt obligations. IRS penalty abatement is often authoriz
