IRS First Time Abatement Saves Client $20,000!

We have a new client who hired us last week concerning his 2006 IRS tax debt totaling over $82,000! He has a significant amount of IRS penalty and interest and wants us to mitigate some of the debt.

We discussed several ways to mitigate the tax debt including IRS penalty and interest abatement, IRS first time abatement, IRS penalty waiver, Offer in Compromise, and an IRS payment plan. Of course, prior to discussing which type of resolution we are going to take, there are several steps to find out what the status of the account is, how much is owed, and where the IRS is at concerning collections. We also need to review his financial position to see what he qualifies for, especially concerning a long-term resolution plan. Before we get into the details, let me explain how we were successful in obtaining and IRS first time abatement on his account within the week!

  • Our first step is to contact the IRS and find out how much is owed – at present, the taxpayer owes $82,000 on the 2006 module
  • Our second step is to find out where the IRS is at in terms of collection
  • Our third step is to obtain an enforcement stay so the IRS doesn’t attempt to collect on the debt
  • Finally, we always ask for an IRS first time abatement

With this particular case, we were successful with all of the above actions. We found out how much was owed, we found the case was in collections, and we also obtained a collection hold. Lastly, we requested and were granted an IRS first time abatement of the penalty and associated interest. We saved the taxpayer $20,000! He now owes $62,000. We’re moving on toward the next step which is to review his financial form to see if he qualifies for any additional savings!

If you or someone you know owes the IRS please do not hesitate to contact us to see if you qualify for an IRS first time penalty abatement. We can be reached at 720-398-6088.