IRS Penalty Abatement with The Law Offices of Nick Nemeth
  • July 12, 2018
  • admin
  • 0

IRS penalty abatement is a provision to remove IRS penalties for late filing and late payment. If a taxpayer has a reasonable cause for non-compliance, they can apply for the relief. If the taxpayer qualifies, the IRS removes some or all of the penalties. An IRS penalty abatement, however, does not reduce the underlying tax; it only removes the associated penalties. In all cases, taxpayers need to have a just reason to backup their request for an IRS penalty abatement. Let’s dig deeper to find out all you need to know about IRS penalty abatement.

Grounds for IRS Penalty Abatement

The IRS entertains a penalty abatement application only if the taxpayer is able to prove that the late filing or late payment was due to certain circumstances that were beyond their control. That’s why the IRS approves only a handful of penalty abatements that involve a significant disruption of life. They include:

  • Serious illness
  • Death in the family
  • Destruction of records
  • Divorce
  • Incarceration
  • Delay or error in IRS tax assessment

First-Time Penalty Abatement

The IRS has the provision of First-Time Penalty Abatement (FTA) for taxpayers with a good track record of tax compliance. If a taxpayer receives penalties for late payment or any other failure to meet tax obligations for the first time, they may qualify FTA. It is however important to note that the program is not meant for repeat defaulters, as the IRS will not consider the request in such cases. In addition, it is always advisable to have an experienced IRS attorney help you file your request.

Abatement for Incorrect Advice

When a taxpayer receives penalties because of receiving an incorrect written or oral advice from the IRS, they can apply for an IRS penalty abatement. It is, however, rare for written advice from a CPA or tax professional to result in such a scenario. Most tax professionals have disclaimers in the their emails and letters stating that their work cannot be used to challenge tax penalties or interests. While taxpayers can sue their tax persons for erroneous advice, it is unlikely for the IRS to reduce or remove the penalties.

Application for Tax Abatement

A taxpayer can apply for an abatement by filling Form 843, providing a clear description of their reason for non-compliance. Remember that the IRS penalty abatement is not based on a taxpayer’s ability or inability to pay taxes, interest, or penalties; it is solely based on the ground of “fairness”. If a taxpayer is unable to pay their debt, they can always request an Installment Agreement, Offer in Compromise, or other provisions available in the IRS Fresh Start Initiative.

Wrap Up

Whenever taxpayers a face situation involving tax penalties they think are unjust, it is advisable to hire an IRS tax attorney, who can gather the requisite tax records and present proof to the IRS as to why the penalties received should be removed. The Law Offices of Nick Nemeth in Dallas, Texas has a team of IRS tax lawyers and professionals specialized in dealing with all forms IRS tax issues, and helping taxpayers reduce their tax liabilities. To schedule a consultation with one of our IRS tax lawyers, simply call (972) 426-2553 or fill out our contact form and we will contact you shortly.

Please follow and like us:

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!
Quick Inquiry


    Enter the text you see above