IRS Penalty Abatement

Hire an IRS Penalty Abatement Attorney in Dallas, Texas

Taxpayers who are unable to pay their Federal taxes within the stipulated timeline are subjected to various penalties that can have serious consequences if they are not dealt with in the right manner. IRS penalties may entail forfeiture of property or even jail time. If you have received an IRS penalty, speak with one our IRS tax law attorneys, immediately. We, at the Law Offices of Nick Nemeth, are committed to helping individuals and businesses find their way out of all sorts of IRS tax debt-related troubles without having to run from pillar to post.

Penalties Eligible for Relief

Late Payment Penalties

The first penalty a taxpayer can receive is when they file their taxes on time, but fail to pay the total amount due. In such cases, taxpayers are usually charged with a 0.5% interest on the taxes they owe to the IRS.

Minimum Late Filing Penalty

If you file your return more than 60 days after the due date or extended due date, the minimum penalty for late filing is the smaller of $135 or 100 percent of the unpaid tax. The failure-to-pay penalty is generally 0.5 percent per month of your unpaid taxes.

Late Filing Penalties

Another penalty that taxpayers are subjected to is when they fail to file their tax returns on time. Delaying in filing your taxes will result in late filing penalty amounts to 5% of your unpaid tax every month that it goes unpaid. That amount will accrue for up to 5 months, capping the penalty at 25% of the unpaid amount.

Abatement Provisions

First Time Abatement

The First Time Penalty Abatement penalty waiver allows a non-compliant first-time taxpayer to request abatement of specific penalties for that tax period. An FTA waiver can request abatement in two circumstances, including: failure-to-pay and failure-to-file penalties. Taxpayers may qualify for an administrative relief for their penalties if they:

  • Do not have any penalties for the previous 3 years
  • Have fully-paid their dues
  • Have filled all returns

Reasonable Cause

Reasonable Cause, as the name suggests, is based on all circumstances and facts that establish a just reason why a taxpayer was unable to pay or file their taxes within the deadline. Before attempting to resolve an IRS penalty, make sure that the information in the notice received is accurate and correct. If the notice contains resolvable issues, there is a possibility of penalty abatement. The reasonable causes include inability to obtain tax records, natural disasters, serious illness, or the death of a family member.

Statutory Exception

If the notice received has any incorrect information, the recipient may qualify for statutory exception. When requesting for penalty relief, taxpayers need to have three documents that includes the written advice given by the IRS, tax adjustment report (if any) that identifies the penalty, and your request for advice. The Claim for Refund and Request for Abatement (Form 843) must be filed to request a penalty relief in such circumstances.

How Can We Help?

There are a number of scenarios wherein taxpayers need to opt for IRS penalty relief, whether they fail to file their tax return or pay the amount due on time. If you are dealing with tax issues and need to hire a tax attorney in Texas call (972) 627-4580 or fill our contact form for a free consultation. We have a team of IRS tax law professionals equipped with comprehensive knowledge to help you overcome IRS tax problems.


IRS Penalty Abatement
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