Penalty Abatement

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If you have had a penalty added to your overdue tax bill, we may be able to get it removed for you. The IRS allows for removal of some penalties under certain circumstances.

The penalties that are eligible for relief include, but are not limited to:
 

  • Failing to file a tax return
  • Failing to pay on time
  • Failing to deposit certain taxes as required

One way a penalty can be removed is through the IRS First Time Penalty Abatement Policy. Taxpayers who meet the following conditions will most likely qualify:
 
  • You haven’t received a penalty for the 3 years prior to the tax year in which you received the penalty.
  • You are current on your tax return filings.
  • You do not have overdue taxes or have a payment agreement for any taxes owed.

The IRS may also remove penalties if you obtained them during a time period in which there were circumstances beyond your control preventing you from meeting your tax obligation. This is called Penalty Relief through Reasonable Cause. If this is your situation, our tax professionals will work with you to present a reasonable and sound case to the IRS with regard to why the penalty should be removed due to circumstances beyond your control.

Typical circumstances for a Reasonable Cause penalty removal can include but are not limited to:
 
  • Natural disaster, fire, or causality
  • Inability to acquire records
  • Serious illness, death, or incapacitation
  • Unavoidable absence of the taxpayer or member of the taxpayer’s immediate family.

Penalty Relief due to Statutory Exception is another tool our tax professionals can use to remove your IRS penalties. If the IRS sent you incorrect written advice, you may qualify for this exception. Our tax professionals will gather the documentation required and present the IRS a sound case that you were given erroneous advice.

Regardless of how the penalty relief was obtained, once the penalty is removed, all interest that accrued on the penalty portion of your tax bill will also be removed. However, the interest that accrued on your overdue tax balance will not.

Timing your penalty relief request properly is crucial for obtaining an optimal outcome. For example, the failure to pay penalty will continue to accrue until your tax bill is paid in full. In addition, if you file for a First Time Penalty Abatement too early, you may not get the full benefit. Our tax professionals are here to help you get the most advantageous result possible.

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