All About Penalty Abatement and Tax Resolution

The team at Dayes Law Firm can help clients settle tax debts and assist with many other settlement services. One fundamental element of tax resolution service is penalty abatement, and it might be a good option for you if you need tax relief assistance. But what is penalty abatement and how does it work when it comes to tax resolution?

Penalty Abatement: What is It?

Failing to make a payment or failing to file your taxes on time can result in penalties from the IRS. Fortunately, when it comes to tax resolution, most clients will be eligible for first penalty abatements (subject to their compliance history). 

Penalty abatement involves requesting a reduction or removal of penalties and interest charged on unpaid taxes for cause or as part of a settlement arrangement.

According to the IRS, “You may qualify for penalty relief if you tried to comply with tax laws but were unable due to circumstances beyond your control.” Reasonable causes for for failing to file or pay on time may include:

• Fires, natural disasters, or civil disturbances
• Inability to get necessary records
• Death, serious illness, or unavoidable absence of the taxpayer or their immediate family
• System issues that delayed a punctual electronic filing or payment

The agency notes that you might qualify for penalty relief if you show that you “exercised ordinary care and prudence and were nevertheless unable to file your return or pay your taxes on time.”

Penalty abatements aren’t just given out without some work on your part and without cause. But if you believe you might qualify based on your circumstances, a tax relief attorney may be able to help you pursue the process. 

How to Get Penalty Abatement

You may be able to have some of your tax penalties reduced or removed over the phone. If you can’t resolve the situation that way, it may be possible to request relief in writing with Form 843, Claim for Refund and Request for Abatement.

But first, you’ll want to be sure that seeking penalty abatement is the best option for you. There may be several tax resolution solutions available to you, and a tax attorney specializing in back tax resolution and compliance matters can walk you through your choices and help you determine which course of action may be appropriate for your situation. 

You could potentially save quite a bit of money by pursuing penalty abatement or another tax resolution opportunity. Working with a law firm that offers customized, inventive, and affordable tax resolution solutions for each client is likely in your best interest to come out of a tax debt situation in compliance with the IRS. 

Please contact Dayes Law Firm today for a free, no-obligation consultation to learn more. Our team is standing by to discuss penalty abatement or another tax resolution option with you. Call 866-875-1005 now to find out more!