5 Tips on Filing an IRS Penalty Abatement Request

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We receive quite a few calls from prospective clients inquiring about the receiving a reduction or a IRS penalty abatement in relation to penalties accrued. Most individuals and businesses alike do not qualify for a settlement program or a IRS penalty abatement. In fact, most clients we obtain we set up an affordable payment plan for in relation to their debts. However, in limited circumstances individuals and businesses do qualify for a IRS penalty abatement. Please find a few tips below regarding the IRS penalty abatement rogram:

  • First and foremost there is strict criteria and reasonable cause the IRS must adhere to when considering a IRS penalty abatement request
  • Secondly, one must be current and compliant with all filings and tax payments; and if an individual or business is on a payment plan, the plan must be adhered to
  • Third the IRS may consider a first time penalty abatement should there be a case whereby the taxpayer hasn’t accrued any penalty 3 years prior
  • If the taxpayer doesn’t qualify for the first time penalty abatement, there may be reasonable causes used within the request such as; sickness or death in a family, medical emergencies and other issues beyond the taxpayers control
  • Finally, in the majority of cases, the tax portion of the bill must be paid prior to a penalty abatement being considered

If you feel you or someone you know might qualify for an IRS penalty abatement please call us immediately. As always we can be reached at 720-398-6088.