IRS Penalty Abatement
Getting hit with a tax penalty from the Internal Revenue Services (IRS) can be quite scary, however, you are not alone. In fact, an estimated 10 million taxpayers incur a tax penalty each year, a 40% surge from 7.2 million in 2010 to 10 million in 2015.1 A tax penalty results from not paying enough on your total tax during the year and is based on the IRS’ interest rate on unpaid taxes. Fortunately, our team of tax lawyers in Southern California can help in verifying if you are qualified for an IRS penalty abatement, which will clear you of tax penalties.
What Is A Penalty Abatement?
An IRS penalty abatement offers tax relief if you attempted to adhere to state or federal tax law requirements. The IRS grants two common types of penalty abatements based on specific situations: reasonable cause penalty relief and first-time penalty abatement (FTA). Reasonable cause is heavily contingent on your case and the IRS will take into consideration your efforts in complying with federal tax obligations. Some events that apply to a reasonable cause penalty abatement include:
- Natural disasters
- Inability to acquire records
- The death or serious illness of the taxpayer or member of the taxpayer’s immediate family.2
FTA is granted to taxpayers who have a clean compliance history, meaning you haven’t accrued penalties over the past three years. You may qualify for the IRS’ First Time Penalty Abatement policy if:
- You have no prior penalties over the last three tax years
- You paid or arranged to pay all tax due.
- You’re up to date on filing required returns or applied for an extension of time to file.3
How Do I Request an IRS Penalty Abatement?
We can prevent accruing penalties by filing a non-assertion request. If the IRS has already issued a penalty, our tax professionals can request abatement on your behalf. Once you have paid the penalty, we can request a refund by filling out Form 843, Claim for Refund and Request for Abatement.
We’re Here to Help
If you were assessed with a penalty by the IRS, let our experienced tax professionals handle your case to help you receive an IRS penalty abatement. Our Los Angeles tax lawyers have the skills and the knowledge in tax preparation services to ensure your case is as successful as possible. With decades of combined experience, you can safely put your full trust in our team to help you out of tax woes. Get A Tax Lawyer today by calling the best tax attorneys in Los Angeles at 1-800-290-8160!
- Internal Revenue Service – 10 Million Taxpayers Face an Estimated Tax Penalty Each Year; Act Now to Reduce or Avoid it for 2017; New Web Page Can Help
- H&R Block – Reasonable Cause Penalty Relief
- AICPA.org – IRS First-Time Penalty Abatement