IRS penalties and interest can cause a small delinquent tax debt to compound into a seemingly insurmountable amount within a very short period of time. Penalties alone can make up 25% of the amount you owe.Our experienced tax attorneys are experts at penalty abatement – from getting the IRS to either completely or partially remove your penalty, to reduce the amount you owe and help you get your tax debt resolved quickly.
In many tax debt cases, the Penalty and Interest portion of the tax debt is quite significant. If you are facing penalties for not filing or paying your taxes on time, you may be able to get those penalties removed (or even get past penalties and interest refunded) through penalty abatement or penalty adjustment. Abatement refers to eliminating an assessed tax liability, and an adjustment references reducing or altering an assessed tax liability.
If there is a ‘reasonable cause’ for abatement or adjustment, the IRS may be willing to review the penalties which created a tax liability. Reasonable cause can include:
We can work with you to make payment arrangements that the IRS will accept. If there were circumstances beyond your control that prevented you from paying your tax debt and led to delinquency, we are able to challenge the penalties. Relief from penalties falls into four separate categories: