Penalty Abatement

What is a Penalty Abatement?

With our help first-time penalty abatement (FTA) is possible and is the process by which the IRS agrees to remove penalties from your tax debt. That includes penalties for failure to file, failure to pay, and failure to deposit. The IRS may also remove interest related to those penalties.

Tax debt accumulates penalties and interest much faster than most people realize. If your debt is a few years old, you may see your liability increasing at a faster rate than you can pay. We can help reduce or eliminate these penalties if you are eligible for a penalty abatement.

Taxpayers can request relief from penalties. For the failure to file or pay a fine, taxpayers can ask the Internal Revenue Service to "abate" the penalties. Abatement is merely getting rid of the penalties after they are analyzed to the taxpayer. Failure to File (FTF) as well as Failure to Pay (FTP) fines typically require abatement due to the fact that the Internal Revenue Service analyzes these penalties in an electronic format (using its computer systems) when a return is filed, or a transaction is made on a balance due account.


Other fines generally require different methods to request relief. For example, the estimated tax penalty is normally not "abatable" by the taxpayers. Rather, taxpayers can ask for an exclusion from the penalty when filing their income tax return (individuals use Form 2210).


Other penalties are suggested during IRS audits and inspections. These include accuracy or fraud penalties, and also usually need the taxpayer to deal with IRS auditors or appeals officers prior to the evaluation of the penalty. Taxpayers can ask for abatement of return accuracy penalties after they are analyzed, yet the abatement procedure might require utilizing special IRS methods or taking the IRS to court. This can take years to resolve.


You might get approved for relief from fines if you made an initiative to comply with the needs of the law, but were unable to fulfill your tax responsibilities, because of situations beyond your control.


If you received a notice, make sure to examine that the info in your notification is correct. If you can fix a problem in your notification, a penalty may not be applicable.


Penalties qualified for fine relief include:

  • Failing to file an income tax return
  • Failing to pay on time
  • Failing to deposit certain taxes as demanded
  • Various other penalties as applicable.


There are more qualifications but let us help you with that. Give us a call today at 800.987.3051 and we can start to take a look at your tax situation. 

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