IRS Penalty Abatement Overview | Tax Group Center

Are you interested in being released from IRS penalties? IRS penalty abatement may be an option that’s on the table for you. Of course, navigating the waters of a penalty abatement request must be done very carefully, and a team of tax experts with deep knowledge of the IRS should be by your side as you seek one.

Let’s take a look at what petitioning for penalty abatement can entail.

A Look at IRS Penalties

The IRS assigns penalties to taxpayer accounts automatically through a computer system. That means that the penalty amount that has been slapped on your account was decided using generic calculations done by a machine. Unfortunately, penalty totals are often added to taxpayer accounts without any consideration of the specific circumstances of that taxpayer. IRS penalties can turn a tax debt into a terrifying, unmanageable burden for someone who is already behind on tax payments. The good news is that the IRS is often willing to take a second look at penalties when a taxpayer makes a request.

Can You Get IRS Tax Penalties Removed?

It is possible to have IRS tax penalties reduced or removed from your balance, but the process of requesting penalty abatement is not simple. In fact, successfully applying for abatement requires a thorough understanding of IRS codes, language, and procedures. Even taxpayers who have solid reasons for not paying taxes on time can have a rough time when it comes to getting penalties taken away if they don’t seek out professional help.

The Importance of Reasonable Cause

The IRS will require you to prove that you had reasonable cause for not paying your taxes on time. The IRS will consider any reason that proves you used all the resources available to you to try to meet your federal tax obligation. While a lack of available funds won’t necessarily qualify as reasonable cause, we’ve provided some reasons that often will:

  • Natural disaster, fire, and other disturbances
  • An inability to obtain records
  • Death or serious illness impacting a taxpayer or member of a taxpayer’s immediate family

Keep in mind that the IRS will require documentation when you submit a penalty abatement letter. You will need to submit documentation related to natural disasters and related events. In addition, court and hospital records will be necessary if your request is related to injury or illness. The bottom line is that it’s up to you to prove that you had a legitimate reason for being out of compliance with your tax responsibility.

The Tax Group Center Can Help

When a taxpayer decides to use the Tax Group Center and they qualify for a Penalty Abatement, our goal is to help them get all of the penalties (and possibly some of the associated interest) either removed from the tax debt or refunded by the IRS. In order to do this, we show the IRS in writing that the taxpayer had “reasonable cause” for not paying the taxes and that he/she has shown “due diligence” and “no neglect” in attempts to repay the debt. We do this in the IRS’s own language and apply the relevant sections of the IRS code directly to the client’s circumstances, which then requires the IRS agent who reviews the case to drop or refund the penalties.

The Tax Group Center’s 30 years experience with the IRS puts us in the perfect position to help you with a variety of tax problems, including creating and submitting your IRS penalty abatement letter. We’ll put all of our expertise to work to get all penalties removed. In addition, we may be able to help you wipe out some of the associated interest on your balance. Let our team walk you through the process of proving that you didn’t fail to meet your tax obligation on time due to negligence. The Tax Group Center can help you use the language of the IRS to create a case for why your circumstances qualify you for IRS penalty abatement. Reach out today to get started!