Eliminate IRS Penalties and Save Thousands
IRS penalties can double your tax debt. Our tax attorneys can get penalties removed or reduced through penalty abatement, potentially saving you thousands of dollars. Penalties can add 25-75% to your tax debt - eliminate them now and save money.
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How Much Tax Debt Do You Owe?
Eliminate IRS Penalties with Penalty Abatement
IRS penalties can double your tax debt. Our tax attorneys can get penalties removed or reduced through penalty abatement, potentially saving you thousands of dollars.
What Is IRS Penalty Abatement?
IRS penalty abatement is the process of requesting that the IRS remove or reduce penalties assessed on your tax account. Penalties can add up quickly—failure-to-file, failure-to-pay, accuracy-related penalties, and others can increase your tax debt by 25% to 75% or more. Penalty abatement can significantly reduce your total debt, making it easier to pay off what you owe.
How Much Can You Save?
Penalties can represent a huge portion of your total tax debt. For example, if you owe $50,000 in back taxes with penalties, you might actually owe only $30,000 in taxes and $20,000 in penalties. Getting penalty abatement could reduce your debt by 40%.
Our tax attorneys have helped clients eliminate tens of thousands of dollars in IRS penalties through penalty abatement.
Common IRS Penalties That Can Be Abated
Failure-to-File Penalty
5% of unpaid taxes per month (up to 25%) for not filing your tax return by the deadline. This penalty adds up quickly and is one of the most common penalties we help clients eliminate.
Failure-to-Pay Penalty
0.5% of unpaid taxes per month (up to 25%) for not paying your taxes by the deadline. This penalty continues to accrue until you pay the full amount or set up a payment plan.
Accuracy-Related Penalty
20% of the underpayment for substantial understatement of tax, negligence, or disregard of rules. This penalty can be abated if you can show reasonable cause or that you relied on professional advice.
Estimated Tax Penalty
Penalty for not paying enough estimated taxes throughout the year. Self-employed individuals and those with investment income often face this penalty. It can be abated in certain circumstances.
Payroll Tax Penalties
Penalties for late deposit or payment of payroll taxes. These can be substantial for businesses and may be abated if you can show reasonable cause for the delay.
Ways to Qualify for Penalty Abatement
The IRS offers several ways to qualify for penalty abatement. Our tax attorneys know which approach is best for your situation:
First-Time Penalty Abatement (FTA)
If you have a clean compliance history for the past 3 years, you may qualify for first-time penalty abatement. This is the easiest way to get penalties removed and doesn't require proving reasonable cause.
Requirements: No penalties in the past 3 years, filed all required returns, paid or arranged to pay any tax due.
Reasonable Cause
If you can show that you had a good reason for not filing or paying on time, the IRS may abate penalties. Reasonable cause includes serious illness, death in the family, natural disasters, or other circumstances beyond your control.
Examples: Hospitalization, fire or flood, inability to obtain records, reliance on incorrect professional advice.
Statutory Exception
Certain situations automatically qualify for penalty relief, such as incorrect written advice from the IRS, IRS errors or delays, or inability to obtain records due to IRS actions.
Examples: IRS gave you wrong information in writing, IRS lost your payment, natural disaster declaration.
Administrative Waiver
The IRS occasionally offers administrative waivers for certain penalties, especially during times of widespread hardship or when IRS systems have issues. Our tax attorneys stay informed about these opportunities.
Examples: COVID-19 relief, disaster relief, IRS processing delays.
How Our Tax Attorneys Get Penalties Removed
Getting penalty abatement requires knowing the rules, gathering the right documentation, and presenting a compelling case to the IRS. Our experienced tax lawyers maximize your chances of success:
Analyze Your Penalty History
We review your IRS account transcript to identify all penalties and determine which ones can be abated. We also check your compliance history to see if you qualify for first-time penalty abatement.
Choose the Best Strategy
We determine whether to pursue first-time penalty abatement, reasonable cause, statutory exception, or a combination of approaches based on your specific situation.
Gather Supporting Documentation
We collect medical records, death certificates, insurance claims, or other evidence to support your reasonable cause claim. Strong documentation is critical for success.
Prepare Compelling Request
We prepare a detailed penalty abatement request that clearly explains why you qualify for relief, citing relevant IRS guidelines and court cases to support your position.
Negotiate with IRS
We communicate with the IRS on your behalf, responding to questions and providing additional documentation as needed. We know how to navigate IRS procedures and overcome objections.
Appeal if Necessary
If the IRS denies your penalty abatement request, we can appeal the decision and present additional evidence. Many denials are overturned on appeal with proper representation.
Reduce Your Tax Debt by Eliminating Penalties
IRS penalties can add thousands or even tens of thousands of dollars to your tax debt. Penalty abatement can significantly reduce what you owe, making your debt more manageable. Our tax attorneys have helped hundreds of clients eliminate penalties and save money. Don't pay more than you have to—contact us today for a free consultation.
Get Your Free Consultation NowTips for Successful Penalty Abatement
✓ DO: Act Quickly
Request penalty abatement as soon as possible. The longer you wait, the more penalties accrue and the harder it becomes to prove reasonable cause. Time is critical.
✓ DO: Get Current on Filings
The IRS will not consider penalty abatement if you have unfiled tax returns. Make sure all required returns are filed before requesting penalty relief.
✗ DON'T: Use Vague Explanations
"I forgot" or "I was busy" are not reasonable cause. You need specific, documented reasons for why you couldn't file or pay on time. Our tax attorneys know what the IRS considers acceptable.
✗ DON'T: Ignore Penalty Notices
If you receive a penalty notice, don't ignore it. You have a limited time to request abatement or appeal. Contact a tax attorney immediately to protect your rights.
Frequently Asked Questions About Penalty Abatement
Can interest be abated along with penalties?
Generally, no. The IRS rarely abates interest unless the interest was caused by an IRS error or unreasonable delay. However, when penalties are abated, the interest that accrued on those penalties is also removed. This can result in significant savings. Our tax attorneys can determine if you qualify for interest abatement in rare cases.
How long does it take to get a penalty abatement decision?
The timeline varies depending on the type of request and the IRS's workload. First-time penalty abatement requests are often processed within 30-60 days. Reasonable cause requests can take 60-90 days or longer, especially if the IRS requests additional documentation. Our tax attorneys follow up regularly to expedite the process.
Can I request penalty abatement more than once?
First-time penalty abatement can only be used once every 3 years. However, you can request penalty abatement based on reasonable cause as many times as you have valid reasons. Each request is evaluated on its own merits. Our tax attorneys can help you determine the best approach for multiple penalty abatement requests.
What if my penalty abatement request is denied?
If your request is denied, you have the right to appeal the decision. Our tax attorneys can file an appeal and present additional evidence to support your case. Many denials are overturned on appeal with proper representation. We can also explore alternative strategies to reduce your overall tax debt.
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