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Tax Services

Penalty Abatement

Tax Resolution Team
Professional Service

The IRS issues billions of dollars in penalties each year, but not all taxpayers have to pay them. Our penalty abatement experts help reduce or eliminate tax penalties, potentially saving you thousands of dollars through proven strategies.

What is Penalty Abatement?

The IRS issues billions of dollars in penalties each year and intends to collect on all of it. However, they realize that some people can't or shouldn't have to pay, and removing those cases from their books allows them to pursue those taxpayers who can and should pay.

Not all taxpayers will qualify for penalty abatement. It depends on the particular financial circumstances of that individual and the type of penalty being assessed. Every case is unique and the IRS will decide each case by either approving or denying the abatement request based on the information you provide.

Why Does the IRS Charge Penalties?

The IRS charges penalties on top of your tax debts because they're designed to encourage you to follow the rules and remain in compliance with federal tax laws. Every year, the IRS assesses tens of millions of penalties for taxpayers that total billions of dollars.

However, the IRS does provide several options to get your penalties removed or abated if you're able to qualify for penalty abatement.

Most Common IRS Penalties

Did you know that there are about 150 penalties in the Internal Revenue Code? However, only a few of the most common penalties make up 74% of all the penalties charged every year:

56%

Failure to Pay Penalty

Imposed if you don't pay taxes on time

14%

Failure to File Penalty

Imposed if you don't file a return on time

4%

Failure to Deposit Penalty

Imposed if a business doesn't pay employment taxes on time

Four Primary Reasons for Penalty Relief

Statutory Exception

Used when you can prove a specific authoritative exclusion to the penalty. Examples include disaster relief or combat zone relief.

IRS Error

You need to show documentation that the mistake resulted from reliance on IRS advice. Requires documented erroneous advice from the IRS.

Reasonable Cause

When you can provide a valid reason that you could not comply based on your specific facts and circumstances.

Administrative Waiver

Taking advantage of provisions designed to provide relief under certain conditions, including First-Time Penalty Abatement (FTA).

Important Note:

First-Time Penalty Abatement (FTA) is the easiest of all available penalty relief options. You can use FTA to decrease failure to deposit, failure to file, and failure to pay penalties for one tax period if you have a clean compliance history for the past three years.

Do's and Don'ts of Penalty Relief

DO's

  • Always utilize First-Time Abatement (FTA) for eligible penalties
  • Appeal adverse determinations - many IRS determinations don't consider all circumstances
  • Include specific circumstances outside your control in reasonable cause requests
  • Show prior compliance history - weighs heavily in favor of reasonable cause relief
  • Always follow up on abatement requests as they can get lost in the IRS system

DON'Ts

  • Don't pay your penalty before requesting reasonable cause - removes critical IRS appeals avenue
  • Don't use tax professional or financial hardship excuses for failure to file penalties
  • Don't expect immediate results - reasonable cause requests take 2-3 months for initial determination

Timeline for Penalty Abatement

Processing Times:

  • • First-Time Penalty Abatement: Approved by phone instantly
  • • Reasonable Cause Requests: 2-3 months for initial determination
  • • Appeals Process: Additional 6-12 months if needed

Expert Representation Matters

It is important to have expert representation on your side for this process. Our mediation experts will prepare your request and submit it to the IRS on your behalf. We tailor and prepare a customized request that has offered proven results with past clients.

The information we gather from the client assists us in preparing a comprehensive and complete abatement request, which results in the best chance that your penalty abatement request will get approved.

How We Help You Save Money

  • • Custom tailor tax services to fit your unique needs
  • • Examine every option to save you as much money as possible
  • • Ensure you receive the best possible settlement every time
  • • Navigate the complicated process of tax debt relief
  • • Provide guidance to live tax debt free

Stop Paying Unnecessary Penalties

Don't let IRS penalties destroy your financial future. Our tax specialists have the experience and expertise to walk you through the entire penalty forgiveness application, identify which solution is best for you, and help you solve your tax problems once and for all.

Start Your Penalty Relief Today