Penalty Abatement
IRS
Since the US tax system revolves around voluntary compliance, the IRS will assess penalties for noncompliance. We can help you determine if your case may qualify for a reduction of penalties or, in some cases, their complete removal. We’ve successfully appealed millions of dollars in penalties and we are always excited to help our clients get relief from what can be exorbitant fees. Please schedule a free consultation if you think you may have reasonable cause as to why the taxes went unfiled and/or unpaid.
Questions?
What is a penalty abatement?
Abatement is a fancy word for removal, so if the IRS agrees to abate your penalties, they are agreeing to remove the fees from your account. Sometimes the IRS will relieve a small portion of the debt, and other times a considerable amount. Each case is different, and some taxpayers may have debts that are 90% penalties, and others may owe a majority of taxes still, with very little penalties on the account. The first step in a penalty abatement is to determine how many penalties there actually are and for which years. Please reach out today if you’d like to know how much of your debt is penalties and what options are available for their removal/abatement.
What do you need for a successful abatement case?
First, you need some penalties. If your debt is recent, there may not be many penalties on the account. However, even if your debt is paid you may still have penalties that qualify for abatement. So if you have been penalized by the Feds for late or unpaid tax, the next most important thing is that there was reasonable cause for the accrual. That means you didn’t simply forget or neglected to pay (even if you didn’t have the money)—reasonable cause means there were circumstances and events outside of your control which prevented you from paying the tax in a timely manner. You need a solid explanation which illustrates how a reasonable person (in this case, a taxpaying American) would see why someone in your situation did not file or pay timely. Barring that, there isn’t much wiggle room without reasonable cause and simply applying for forgiveness does not entitle you to any relief. Your best bet, as with most things involving the IRS, is to hire someone experienced that you trust will put your best foot forward. Call us today for help with getting your penalties from IRS removed or reduced.
How many penalties have you seen the IRS remove with a successful abatement case?
We’ve successfully reduced hundreds of thousands from a single taxpayer’s account through our abatement request. It required a lengthy proposal with the laws and facts pertinent to the case, with affidavits and supporting documentation. It took several months to complete with our client, and then it took several months for the IRS to read and make a determination on our application for abatement. But the call we made that day to the lucky individual whom we told no longer had any debt, that the IRS had exonerated hundreds of thousands of penalties overnight—that call was unforgettable. Reach out today to see if we can help remove your penalties as well.