• January 4, 2022
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IRS penalties can be a nightmare for taxpayers. Making the scenario worse is the fact that most penalized taxpayers either do not request relief or have their abatement request turned down because they failed to comply with the IRS’s filing guidelines. That is the reason why it is important for taxpayers to rope in an experienced IRS tax lawyer. With proven experience in handling IRS penalty abatement cases your tax attorney can help you earn a determination in your favor. In this article we cover some notable dos and don’ts when applying for IRS penalty abatement. Read on.


Utilize First-time Penalty Abatement Relief

Before considering reasonable cause abatement taxpayers should always consider that first year failure-to-file (FTF) and failure-to-pay (FTP) penalties qualify for First-time Penalty Abatement (FPA) relief, provided the taxpayer meets a few other requirements. To be eligible, you must have filed all required returns, paid all taxes due or be in an IRS agreement on the outstanding balances, and you must not have received any IRS penalties in the 3 years prior to the year the penalty was assessed against.

Related Blog Post: How to Stay Out of Jail When You Owe Back Taxes

Show Prior Compliance

IRS Policy Statement 20-1 states that the primary intent of IRS penalties is to deter noncompliance. It is therefore imperative that taxpayers who are planning to request penalty abatement are able to showcase and prove their prior year tax compliance. If a taxpayer has received any penalties in prior years, then they must have a reasonable clause for the noncompliance.

Consider Placing a Written Request

Many taxpayers call the IRS to request penalty abatement; this can work in the cases that qualify for FTA but it is not the ideal approach for reasonable cause abatements. In those cases, the taxpayer should fill out ‘Form 843: Claim for Refund’ to request penalty abatement and they should attach all available evidence that can support their reasonable cause claim.

Include All Essential Items

When preparing to request IRS penalty abatement, make sure you are clear about the circumstances that were beyond your control that caused the noncompliance. This could be an illness, incapacitation, loss of records, or other similar reasons. Make sure you attach all essential items to support your reasonable clause claim and be sure to show how other aspects of your life were affected by the situation.


Don’t Pay the Penalty

If you pay the penalty before requesting reasonable cause, it may remove an important avenue of IRS appeals: The Collection Due Process (CDP) hearing. If you have an unpaid balance, you can place a request for a CDP hearing on an unpaid penalty. During the hearing, the IRS thoroughly considers your penalty abatement request, which increases the likelihood of an abatement approval.

Related Blog Post: Worried about IRS Problems? The IRS Fresh Start Program May Help

Don’t Just Blame it on the Tax Pro

The IRS may only need one reason to grant a request for reasonable cause abatement, but the IRS can deny a request for any number of reasons. If the abatement request blames a Tax Professional as the only cause for a failure to file then your average taxpayer is unlikely to get a beneficial response from the IRS. With all the tools available to the public the ‘bad tax pro’ argument is an uphill battle. Furthermore, don’t just complain to the IRS that it will be difficult to pay. Consult with an IRS tax attorney to present the best case to the IRS that doesn’t just show but rather proves to the IRS that you really are unable to pay the penalty.

Don’t Delay, Hire an IRS Tax Attorney

While there is no time limit to request a reasonable cause abatement of the FTF or FTP penalty, waiting too long can reduce or even eliminate the benefit of doing so. If you have paid the penalty and balance due for a given year and then you request RCA, you could get a refund in the amount of the penalties abated. If you wait too long though, that check may be out of your grasp forever. If you have questions about the specifics on this then reach out to the Law Offices of Nick Nemeth as soon as you can

Wrap Up

When applying for an IRS tax penalty abatement, a taxpayer has to consider a number of factors and should be in a position to fully comply with the filing guidelines prescribed by the IRS, which calls for professional expertise. That is the reason why it is always advisable to rope in a trusted and experienced Dallas tax attorney with proven expertise in abatement of penalties and interest. If you are looking for such an expert, the search ends at the Law Offices of Nick Nemeth. Contact us today for a free, no-obligation consultation. Simply call (972) 426-2553 or fill out our contact form and we’ll get back to you as soon as possible.

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What Our Clients Have to Say

Brent VahleBrent Vahle
19:13 02 May 24
I called to see if they could help reduce some penalties and fees. The person I spoke with told me it might be counterproductive for them to take my case since their feels would likely equal the amount of penalty/interest abatement. I decided to pass on moving forward but was so happy to hear a legal team, or any business for that matter, who has that much integrity. I feel most others would likely try to take my money anyway. I hope I never have to go through this again, but if I do, I will definitely use the Law Offices of Nick Nemeth!
Jason WinkleJason Winkle
18:44 02 May 24
Jaime Flores was very friendly, professional, and knowledgeable. She gave me some very valuable information which helped guide me with a plan of action. The free consultation is very much appreciated.
Matthew SwigartMatthew Swigart
12:14 02 May 24
Great attorney who was able to provide quick and useful advice. Although my situation did not warrant their services, they still took the time to discuss solutions I could explore. I highly recommend visiting this office!
Tony PantojaTony Pantoja
12:57 09 Apr 24
Very professional and very knowledgeable, Jamie Flores was very straight forward and professional, a firm that doesn’t just take your money, Thanks
Carla AtwalCarla Atwal
10:52 02 Apr 24
Nick was wonderful in guiding me with direction on some tax questions I had. He was concise, and to the point, and was happy to provide general info to me at no charge. I truly appreciate him and would highly recommend him.
Miguel AlvaradoMiguel Alvarado
15:56 25 Mar 24
By far the best attorneys I have ever worked with. They’re are very helpful and supportive from day one. They went above and beyond to make sure all my documents were submitted on time and gave updates as soon as they received them. I cannot name a single flaw in their work. Their team of assistants are very professional and seem to all be on the same page. I’ve made multiple phone calls and sent a ton of emails to their staff and they were able to help me all through the course of the case. I cannot express my gratitude enough for how excellent they handled my case.
Lucy FoyLucy Foy
06:55 19 Jan 24
My first appointment I had with, Tax Attorney Nick Nemeth, gave me such a sense of relief. He listened and gave me his professional advice, Mr Nemeth took my case. I was well kept updated, by phone calls and letters. That really impressed me and gave me so much confidence in them. The case went on for a couple of months. The day I received the call from one of his team members Kyle, informing me that the case was resolved and that I owed absolutely nothing to the IRS, I was overwhelmed with joy. I would recommend this law firm to anyone that needs help, with any tax issue. Thank you, to the Law Firm of Attorney Nick Nemeth and his team.
Bradley RunyonBradley Runyon
20:17 13 Jan 24
I received a tax bill in the mail from the IRS last year in 2023. The fees and penalties I owed were something I myself could not afford. I reached out to Nick Nemeth's firm and received the best experience you could imagine. The team was professional, educational, and fast. If you have a tax issue with the IRS using another firm other than Nick Nemeth's would be an error in judgment. I would recommend their services above others.
Sue HulsemanSue Hulseman
19:55 11 Jan 24
Working with Nick Nemeth and his team to resolve my debt with the IRS was the best decision I could have made. I felt such relief knowing I didn’t have to deal with the IRS myself. They did a wonderful job and were responsive to my questions and kept me abreast of my case. My outcome was exactly what I was hoping for. I strongly recommend using them if you have an issue to resolve with the IRS.
20:53 21 Dec 23
I had an incompetent tax preparer, who also ignored several notices from the IRS, which in the end resulted in a lien on my property. I did not know what to do and an attorney friend recommended that I contact the Nick Nemeth Law Offices. I met with Jamie Flores and Ivan Nalbantov in December 2021 for a free consultation, and right away was impressed by their thorough examination of my paperwork and extensive knowledge of IRS tax laws. I felt not pressured and appreciated their advice and in the end decided that I would pursue resolving the issue by myself. I paid the IRS Civil Penalty and, as recommended also submitted a letter to the IRS requesting a refund and explaining what happened. I am glad to report that my persistence finally paid off. My case took two years to resolve and I finally received a full abatement/refund check from the IRS in December 2023. I could not have done this without the straightforward recommendation of Jamie and Ivan; and I highly recommend the Nick Nemeth Law Offices to anyone needing help with the IRS.
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!
Memorial Day

In observance of Memorial Day our office will be closed on 5/27/2024.Have a safe holiday weekend. We will re-open Tuesday 5/28/2024 at 7:00a.m.
Please feel free to call our office at 972-484-0829 for any assistance.

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