IRS Penalty Relief
If you’ve been charged IRS penalties for filing or paying your taxes late, you may qualify to have some or all of those penalties reduced or removed. This process is known as IRS Penalty Relief or Penalty Abatement.
Whether you qualify depends on your circumstances and your history of tax compliance.
Types of IRS Penalty Relief
The IRS offers several types of penalty relief, including:
Reasonable Cause Relief
You may qualify if circumstances beyond your control prevented you from filing or paying your taxes on time. Examples include:
- Serious illness or injury.
- Natural disasters.
- Death of an immediate family member.
- Other unforeseen events that made compliance impossible.
First-Time Penalty Abatement (FTA)
If you have a history of filing and paying your taxes on time, you may qualify for a one-time penalty waiver. In general, the IRS considers factors such as:
- Filing all required tax returns.
- Paying or arranging to pay any taxes owed.
- Having a clean penalty history for the previous three years.
Statutory Exception
In limited situations, penalties may be removed if they resulted from incorrect written advice provided by the IRS or another circumstance recognized under IRS rules.
Don’t Wait to Request Relief
Deadlines apply when requesting IRS penalty relief. In many cases, you have a limited amount of time to request an abatement, so it’s important to review your eligibility as soon as possible.
How We Can Help
Determining whether you qualify for penalty relief can be complicated. We will review your situation, identify the relief options available to you, prepare the necessary documentation, and communicate with the IRS on your behalf.
If penalty relief isn’t available, we’ll help you explore other IRS tax resolution options that may better fit your situation.
Schedule a free, confidential consultation to find out whether you qualify for IRS penalty relief and learn how we can help reduce your overall tax burden.