Abating IRS Penalties
It is imperative you know your rights and obligations when it comes to disputing IRS penalties because you may qualify for the certain types of relief offered by the IRS (IRS Penalty Abatement).
The IRS has a few ways to abate penalties that have been assessed against you. The easiest one to obtain is what is known as the First-Time Penalty Abatement, which rewards taxpayers who have a good compliance history with the IRS. This type is an administrative waiver that applies to failure to file, failure to pay, and failure to deposit penalties.
In order to qualify, you must have a good history of filing compliance, payment compliance as well as a clean penalty history for the three prior years. This type of request is only granted one time to a taxpayer, and only for one year.
The IRS may also agree to waive or abate other assessed penalties but only based on reasonable cause criteria.
It is important to know that accuracy-related penalties are rarely if ever, abated by the IRS. But you may qualify for relief for collection penalties if you tried to comply with tax law but were unable to due to circumstances beyond your control, such as:
- Death, serious illness or unavoidable absence
- Fire or other natural disasters
- An inability to obtain records
- Undue hardship
- Written or oral advice from the IRS or a tax advisor
- An IRS error
Reasonable cause is what the IRS looks at when a request comes in to have your penalties abated, and the burden of proving your case for abatement falls with you, the taxpayer.
Explore Your IRS Penalty Abatement Options with True Resolve.
At True Resolve, our tax experts are ready to work on behalf of you or your New York-based business to find relief for penalties assessed on your past-due taxes. We can help you understand your rights and navigate the complexities of the process to minimize your current tax burdens.