Your first step is not to pay the fine until you’ve explored all your abatement options. The IRS will regard paying as an admission of liability, so please hold off on that step.
If you have a tax liability, then you know the Internal Revenue Service (IRS) will add penalties and interest to your unpaid taxes and watch it grow. But did you know that there’s an option to remove IRS penalties? It’s like that saying goes: “If you don’t ask, the answer is always no.” While there is no guarantee that the IRS or state taxing entity will grant you a penalty abatement, it’s in your best interest to try.
If you need an IRS penalty relief, call us at 844-841-9857 or complete our contact form. We can help you determine the best plan to tackle your tax liability and penalties!
Penalty abatement is a waiver or reduction of tax fine fees. If you fail to file your return on time, do not make a payment, or encounter another tax filing error, you’ll receive a fine for the action. However, in select cases, the IRS may provide charge abatement, eliminating or minimizing your fees.
Various events can lead to a penalty, and it’s vital to explore all your options for administrative relief. When you partner with Polston Tax, we’ll identify the best opportunities to handle your IRS charge.
You can use various reasons to request a penalty assessment from the IRS. While we always recommend paying your taxes on time, life’s troubles can often prevent that from happening. The most common grounds for requesting a charge assessment fall under reasonable cause. Some of them include:
This is not a complete list because there are a multitude of reasons that could fall under reasonable cause depending on your circumstances. But the Internal Revenue Service is not going to automatically give you IRS penalty relief – you must ask! Around one-third of all penalties imposed by the IRS are later abated, meaning you might have more of a chance to have your penalties abated than you previously thought.
The IRS will not automatically give you penalty relief unless you ask!
Other fine abatement reasons include:
Statutory exception: The IRS will examine your fine due to statutory exceptions like a tax return mail that didn’t reach them, inaccurate advice from them, being in a military combat zone or living in a federal disaster area.
Administrative waiver: The administrative waiver is available to taxpayers with a good compliance history, meaning they qualify for the IRS First Time Penalty Abatement (FTA) policy.
Abatement can help you eliminate penalties when facing financial challenges or other constraints.
Here are the most common IRS charges, and we have the knowledge and experience to help you challenge them:
When you hire a professional team like Polston Tax, you can avoid these charges and move forward stress-free.
Many taxpayers may qualify for an FTA if this is their first time having overdue taxes. The FTA waiver helps those who have recorded excellent compliance histories in the last three years and have attracted fines due to failure to deposit, file or pay. We’ll help you file this administrative waiver regardless of your charge amount.
If you qualify for FTA, you may receive administrative relief for an otherwise applicable penalty due to a tax liability with the IRS. You may be eligible for abatement if you meet this criteria:
Your failure-to-pay penalty may continue to increase until you pay the balance amount in full. Sometimes, you’ll get an advantage if you wait to request first-time penalty relief after fully paying your unpaid taxes.
As you begin the process, the most crucial step is getting skilled assistance to help you navigate complex requirements. When you work with Polston Tax, we’ll handle legal issues and communicate with the IRS to help you achieve a swift resolution.
If you’re facing a tax fine, follow these best practices to request abatement:
Your first step is not to pay the fine until you’ve explored all your abatement options. The IRS will regard paying as an admission of liability, so please hold off on that step.
If possible, try an FTA first. Regardless of reasonable cause for a fine, taxpayers without previous liabilities can request an FTA over the phone.
Make sure you receive information related to reasonable cause in writing, not simply over the phone. Complete Form 843: Claim for Refund and Request for Abatement and include your explanation.
Often, a penalty may not evaluate the taxpayers’ entire financial situation. If the IRS rejects your reasonable cause request, you can prove your grounds by asking for further review with a live person.
When you submit your reasonable cause abatement request, ensure you establish circumstances outside your control that led to noncompliance and furnish proof that this event affected your life in other ways as well. For instance, if you experienced an unexpected illness, provide a doctors’ note and proof that you didn’t work.
Show proof of a positive compliance history to gain favor for your current return.
Sometimes requests may get lost within the IRS, so ensure you track yours and check if the agency is actively working on your submission.
Polston Tax simplifies penalty abatement for individuals and businesses, giving you peace of mind. When you choose us to handle your matter, you’ll benefit our:
Polston Tax is here to simplify the penalty abatement process for you or your business. We understand the complexities of tax law, and we bring in-depth insight and two decades of experience to serve our clients. We’ll assign a diverse team to your case so they can approach it from all angles. As an experienced company operating in the industry for over two decades, we’ve rectified tax issues for many clients, helping them save money and time.
If your liability spans many years, you will want to use penalty relief on the largest fine you can. Your chances of getting the IRS to approve a fine abatement increase when you hire an experienced professional. So, let us help you!
Fill out our online form or call 844-841-9857.
The good news is, the IRS does occasionally remove penalties and interest for people who qualify. Although the process can be complex, it can lead to big savings for those who are approved!
No, absolutely not. The IRS will not automatically give you penalty relief—you must ask for it. This is a critical point: many taxpayers don’t realize they can request abatement, so they pay penalties they might have been able to eliminate or reduce. Around one-third of all penalties imposed by the IRS are later abated, meaning your chances of success are better than you might think.
Because penalties can add significantly to your total debt. For example:
– Failure to File Penalty: 5% per month (max 25%)
– Failure to Pay Penalty: 0.5% per month (max 25%)
– Failure to Deposit Penalty: Varies by amount and timing
If you owe $10,000 in taxes and incur a 25% failure-to-file penalty, you now owe $12,500. Reducing or eliminating the $2,500 penalty saves real money. Abatement is definitely worth exploring.
Penalty abatement focuses on reducing penalties; interest will typically continue to accrue unless you pay in full.
Reasonable cause means you exercised ordinary care and prudence, but circumstances beyond your control prevented you from filing or paying on time. The IRS looks at:
– Your overall tax compliance history
– Whether the situation was within your control
– Whether you acted responsibly once you became aware of the issue
– Any steps you took to correct the problem
