IRS PENALTY ABATEMENT
IRS Penalties Can Add Thousands to Your Tax Debt
Late-filing, late-payment, and other penalties can significantly increase an IRS balance.
In some circumstances, taxpayers may qualify to have certain penalties removed or reduced.
Potential Grounds for IRS Penalty Relief
Depending on the circumstances, penalty relief may be available through:
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First Time Abatement
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Reasonable Cause
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Statutory exceptions
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Correction of IRS errors
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Other applicable administrative relief
Reasonable cause determinations depend on the taxpayer's particular facts and circumstances.
Examples can involve serious illness, death, natural disasters, inability to obtain records, or other circumstances that prevented the taxpayer from meeting a tax obligation despite exercising ordinary business care and prudence.
We Prepare Your Penalty Abatement Request
Foxworth Tax Defense reviews your IRS account, determines potential eligibility, develops the supporting argument, organizes documentation, and represents you through the request process.
If IRS penalties have significantly increased your tax balance, contact Foxworth Tax Defense for a penalty abatement review.
FAQs
What is IRS penalty abatement?
Penalty abatement is administrative relief that may remove certain IRS penalties when applicable eligibility requirements are satisfied.
What is First Time Abatement?
First Time Abatement is an IRS administrative waiver that may be available for certain penalties when a taxpayer meets applicable compliance-history and other requirements.
What qualifies as reasonable cause?
Reasonable cause depends on the taxpayer's facts and circumstances and generally involves demonstrating that the taxpayer exercised ordinary business care and prudence but was nevertheless unable to comply.
Can interest also be removed?
Interest relief is generally more limited than penalty relief and is governed by separate rules. Removing a penalty can, however, affect interest attributable to that penalty.
Can a tax preparer's mistake qualify for penalty relief?
Reliance on a tax professional can be relevant in certain situations, but it does not automatically establish reasonable cause. The underlying facts and taxpayer responsibilities must be evaluated.