IRS Penalty Abatement Help

IRS penalty abatement may reduce or remove certain IRS penalties when a taxpayer qualifies under First Time Abatement criteria or can demonstrate reasonable cause. We evealuate eligibility and prepare penalty abatement request when appropriate.

What Is IRS Penalty Abatement?

IRS penalty abatement is a request to remove or reduce certain tax penalties assessed by the IRS. Penalty abatement can apply to common penalties such as failure to file, failure to pay, or failure to deposit, depending on the taxpayer’s situation and the type of tax involved.

Penalty abatement is not automatic. The IRS generally grants relief when a taxpayer qualifies for First-Time Abatement (FTA) or when the taxpayer can show reasonable cause for the late filing or late payment.

Common IRS Penalties We Address

  • Failure-to-File penalty (late filed tax returns)

  • Failure-to-Pay penalty (late payment of tax)

  • Failure-to-Deposit penalties (often related to payroll taxes)

  • Underpayment-related penalties (in certain situations)

The specific penalty type and tax period determine which relief options may apply.

Two Common Paths to Penalty Relief

First-Time Abatement (FTA): May be available when the taxpayer has a clean compliance history and meets IRS criteria for penalty relief.

Reasonable Cause Relief: May be available when circumstances outside the taxpayer’s control caused the noncompliance (for example, serious illness, natural disaster, or other significant events), and the taxpayer acted responsibly once able.

Eligibility depends on the taxpayer’s filing history, payment history, and the facts supporting the request.

Our IRS Penalty Abatement Process

  1. Case Review & Pre-Qualification
    We identify the penalties involved, the tax periods affected, and whether penalty abatement is an appropriate strategy.

  2. Compliance & IRS Investigation
    We review IRS transcripts, account history, and filing/payment compliance to evaluate FTA eligibility and other relief options.

  3. Reasonable Cause Development (if applicable)
    If FTA does not apply, we help document the facts and timeline needed to support a reasonable cause request.

  4. Submission & IRS Communication
    We submit the request through the appropriate IRS channel and communicate with the IRS regarding follow-up or additional documentation.

Common Reasons Penalty Abatement Requests Are Denied

  • Tax returns are still unfiled or compliance is incomplete

  • The request does not match the penalty type or IRS criteria

  • Lack of documentation for reasonable cause claims

  • Prior noncompliance prevents First-Time Abatement eligibility

  • The taxpayer continues to accrue new delinquencies during the request

IRS Penalty Abatement FAQs

What penalties can be removed through penalty abatement?
Commonly, the IRS may abate certain failure-to-file and failure-to-pay penalties when criteria are met. Eligibility depends on the penalty type and facts of the case.

Is First-Time Abatement available for everyone?
No. FTA depends on compliance history and IRS criteria. We review transcripts and filing/payment history to determine eligibility.

Do I need documentation for reasonable cause?
Often, yes. Reasonable cause requests typically require clear facts and support showing why the noncompliance occurred and how the taxpayer responded.

Do you help taxpayers nationwide?
Yes. We are licensed to represent taxpayers before the IRS and assist clients in all 50 states.

Request a Free Penalty Abatement Case Review

Complete our pre-qualification form to determine whether IRS penalty abatement or another tax resolution option may be available. Not all cases qualify.