IRS Penalty Abatement with The Law Offices of Nick Nemeth
  • February 22, 2019
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Penalty abatement is a provision that allows taxpayers to remove penalties and interests imposed on them for unpaid taxes by the IRS. Taxpayers who have unfiled or unpaid tax debts and have a “reasonable cause” for the noncompliance, can apply for penalty abatement relief. It is, however, important to know that the abatement does not reduce the actual tax amount; it only removes the penalties or interest. Another aspect to remember is that there are a set of causes that are considered to be reasonable enough to waive off a penalty or interest. Continuing on the subject, in this blog post, we cover all you need to know about a “reasonable cause” for IRS penalty abatement and what it really means. Read on.

What is a “Reasonable Cause”?

Reasonable cause is any legitimate excuse a taxpayer may have for not filing or paying their taxes on time. It is, however, essential for the taxpayer to prove their claim with appropriate documentation, proving the circumstance made it impossible for them to pay or file taxes. A few examples that the IRS considers to be a reasonable cause for unfiled or unpaid tax returns include:

  • Natural Disaster
  • Fire or Casualty
  • Records Cannot Be Obtained
  • Serious Illness, Incapacitation, or Death
  • Civil Disturbance
  • Received Incorrect Advice from a Tax Professional
  • Unavoidable Absence
  • Hostage Situation

Establishing a Reasonable Cause

When the IRS investigates your case, they will cross-check the information given to establish whether the circumstance or situation that prevented you from filing of paying taxes was legitimate and “reasonable” or not. A few of the facts that help in establishing the authenticity of reasonable cause includes:

  • What and when did the situation or circumstance occur
  • What reason stopped you from filing or paying the taxes in time
  • How did the circumstance affect the process of filing and paying of taxes
  • If the circumstances change, would you be able to pay or file the taxes in time?

Required Documents

The documents you will require include:

  • Documentation supporting the claim that the taxpayer experienced a circumstance or situation that made it impossible for them to file or pay taxes.
  • In case of a serious illness, incapacitation, or death, the IRS will need the necessary documentation that supports the claim, such as hospital records or a doctor’s letter.

Wrap Up

Now that you know what exactly a reasonable cause for IRS penalty abatement means, speak with an experienced IRS tax attorney at The Law Offices of Nick Nemeth to find your way out of an IRS penalty or interest. We have a team of experienced IRS tax lawyers with proven expertise in dealing with all types of IRS tax-related issues, especially penalty and interest abatement. For a confidential, no-obligation consultation, fill out our contact form or simply call (972) 426-2553.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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