Penalty Abatement

There is another, very effective method for reduction of an outstanding tax debt.

If there were circumstances beyond your control that prevented you from paying your tax debt, we can challenge the penalties (and interest on the penalties) that have been applied to your tax debt.

Relief from penalties falls into four separate categories. They are:

Reasonable Cause – A reasonable mistake made by the taxpayer, death, serious illness, unavoidable circumstances.
Statutory Exceptions – Penalty waiver provisions found in the tax laws.
Administrative Waivers – Undue hardship, fire, flood, natural disaster, bad legal/tax advice that seemed reasonable to the average person.
Correction of IRS Error – Mistake made by the IRS.

Because relief from accrued penalties and interest on penalties is based mainly on your stated representations rather than financial hardship, a successful penalty abatement case requires the presentation of specific facts to the IRS.  There is no one-size-fits-all or cookie-cutter approach to these cases.

More so than any other, penalty abatement procedures involve a great deal of skill to successfully navigate IRS rules in order to bring the matter to resolution. If applied for correctly and effectively, the savings are usually in the thousands of dollars for the average taxpayer.