Qualify to Abate Tax Penalties? Get A Free Consultation and Quote

IRS Penalty Abatement: Removing Penalties Owed

Requirements for IRS Penalty Abatement

The IRS allows individuals to dispute interest and penalties that they have been charged for several reasons. If a taxpayer falls into any of the categories outlined by the IRS’s broad definition of abatement, it is likely that the majority of the penalties can be wiped clean. The IRS requires that the individual filing for penalty abatement meets one of three reasons which are reasonable cause, administrative waivers or a mistake by the IRS.

First Time Penalty Abatement

The first time penalty abatement (FTA) program can be an easy way to remove penalties if you can show a good track record of being in compliance. Under this method the IRS can be very forgiving and allow penalties to be removed without reasonable cause and can be a great tool for taxpayers that are not repeat offenders of not staying in compliance to reduce their tax liability owed.

Requesting and Filing for Penalty Abatement

If the taxpayer meets the requirements for penalty abatement they will be required to file several documents with the IRS to prove to the IRS that they do indeed meet the requirements. There are three ways a taxpayer can present their case to the IRS for abatement; verbal, written or through IRS form 843. No matter which way you choose you will be required to explain and detail out a good reason why you failed to pay the taxes owed.

Sample Penalty Abatement Letter

The most common form of penalty abatement is through a written petition to the IRS. This petition should be written in the format of a formal reason requesting penalties to be abated while stating the reason. This is a sample petition letter of what is typically sent to the IRS when requesting this type of tax relief.

IRS Form 843 Instructions & Details – Request for Abatement & Refund

Taxpayers can use IRS Form 843 to claim a refund or ask for an abatement of certain types of tax related charges. Details & Instructions on using this form.

Penalty Abatement Service and Help

Understand more about how our partnered penalty abatement services works. Their team will gather the appropriate tax records and prove that penalties should be removed, based upon the IRS’s “Reasonable Cause” guidelines. This will reduce your overall tax debt and make your payments smaller.