Penalty Abatement

First Time Penalty Abatement

Some kinds of penalties qualify for a First Time Penalty Abatement. The term “first time” is misleading. It applies to the first time a penalty is assessed after just three years of compliance. If you qualify, call the IRS or write an informal letter. Request a First Time Penalty Abatement for a specific year and tax form (e.g. 1040). The IRS will check if you qualify and immediately remove the penalty if you do.

For details check the IRS website. Call us if you need help!

Abatement for Reasonable Cause

Penalty relief for Reasonable Cause (IRS link) is much more difficult than first-time penalty abatement. The IRS will most likely argue against the existence of a reasonable cause. Thus taxpayers must have a very good and well-documented case. Any reasoning must closely follow the Internal Revenue Manual. A fight with the IRS is almost guaranteed. We can analyze your situation and see whether it makes sense to plead for reasonable cause.