IRS Penalty Abatement

An IRS penalty abatement is available to many taxpayers with high penalties from a failure to file, failure to pay, or failure to deposit. However, most taxpayers do not know that this option is available. A penalty abatement can drastically reduce the penalties you have to pay and it is available to most taxpayers. This can completely alleviate your tax debt problem or minimize debts to make it much easier to pay.

What is an IRS Penalty Abatement?

An IRS penalty abatement is a mechanism the IRS employs to incentivize compliance among taxpayers and make tax debts easier to pay. Penalty abatements are ideal for taxpayers who are struggling with first-time tax debts and have been compliant in the past. Taxpayers that have suffered financial or personal hardship can also use penalty abatement as a way to resolve tax debts and get back to their routine. Penalty abatements can be used for individuals, couples or businesses that have unfiled or late returns, or unpaid penalties.

Who Qualifies for IRS Penalty Abatement?

Though many taxpayers don’t take advantage of it simply because they are unaware it exists, there are many ways to qualify for IRS penalty abatement. In general, penalty abatement requires the taxpayer to be previously compliant and it requires that all back taxes be paid. If an accounting mistake, uncertainty about tax law, a personal crises, or financial hardship has prevented you from filing your taxes or filing correctly for the first time, penalty abatement may be a viable way to significantly reduce tax debt.

How Can IRS Penalty Abatement Help Me?

IRS penalty abatement can reduce or eliminate interest and penalties caused by late, unpaid or unfiled taxes. While these fees are generally a part of larger tax problems, this is one way to reduce the amount you owe. While filing for penalty abatement, we can help you additionally file for an installment agreement or use other solutions to resolve tax debt that cannot be released through penalty abatement. Using tax relief options together, you can reduce your tax debt, stop liens and levies, stop more penalties from accruing, and develop an organized payment strategy.

When Can I Use Penalty Abatement?

Compared to other tax relief solutions, penalty abatement offers some flexibility. Penalty abatement can be used before or after a penalty has been assessed, and even after it has been paid. Since most IRS penalties are calculated and assessed by automated software systems, penalty abatement is a viable way to intervene and stop penalties before they occur.

What if My Penalty Abatement is Denied?

Some taxes and penalties prevent taxpayers from filing for penalty abatement. Additionally, some situations prevent the use of penalty abatement. However, if you have been denied penalty abatement in the past, you may still be eligible. Many requests for penalty abatement are automatically denied by automated software, but taxpayers who appeal this decision are often successful. We can help you file the appropriate documents and reach the right parties to make your penalty abatement successful.

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