If you have yet to file your taxes on time or have paid them late, you might face significant and frustrating penalties. However, an experienced tax attorney can sometimes persuade the IRS to reduce or eliminate these penalties through penalty abatement. Such attorneys have a track record of successfully negotiating penalty abatement for eligible taxpayers in the U.S. They can assess if your situation qualifies for penalty abatement and strive to achieve a fair and legal resolution to your tax issues.
To qualify for a penalty abatement, taxpayers must fulfill certain requirements and offer a reasonable explanation for any late or nonexistent tax payments. This involves submitting proof to the IRS to demonstrate that their circumstances warrant relief from penalties. Acceptable reasons for penalty abatement under current IRS guidelines include:
Additionally, taxpayers who are first-time offenders can apply for first-time penalty abatement (FTA). This applies to certain penalties for a single tax period and could save taxpayers a significant amount. Individuals can request an FTA for not filing or not paying on time, and businesses can request it for not filing payroll taxes on time. The IRS requires that the taxpayer must have filed any late taxes or filed a valid extension to qualify, and they must not have had any penalties in the past three years. If the IRS determines that the taxpayer has complied with payment rules, they may grant the request and lessen the penalties.
For assistance in navigating the penalty abatement process, consider consulting a tax attorney to explore your options and potentially save on penalties.
