Abatement of Penalties & Interest with The Law Offices of Nick Nemeth
  • November 19, 2018
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The IRS tax penalty abatement is a provision that helps remove late payment penalties and interests imposed by the IRS on taxpayers for unpaid debts or not filing tax returns within the given timeline. If you too have unfiled or unpaid tax debts and a “reasonable cause” for the noncompliance, you can apply for penalty abatement relief, requesting the IRS to remove the penalties levied on your tax amount. The abatement, however, does not reduce the actual tax amount, it only removes the penalties or interest charged by the IRS. Continuing on the subject, this blog covers all you need to know about abatement of IRS penalties & interest. Take a look.

Reasonable Causes for Penalty Abatement

The IRS approves the application of penalty abatement only if a taxpayer proves that the late filing or late payment was due to a certain situation that was beyond their control. Some of the reasonable reasons for penalty abatement include:

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

Types of Penalty Abatement

First-Time Penalty Abatement (FTA)

The IRS has the provision of First-time penalty Abatement (FTA) for taxpayers with a consistent record of timely tax payments. If a taxpayer receives tax penalties and interests for the first time, they can request an FTA. It is also important to know that the application is not meant for repeat defaulters. If you want to file your request for FTA, it is advisable to have an experienced IRS tax attorney to guide you through the process.

Abatement for Incorrect Advice

When a taxpayer receives penalties because of some incorrect advice from an IRS tax attorney, they can apply for the IRS penalty and interest abatement and also sue the at-fault party. To qualify for the abatement, you need to provide complete information, including the advice received, and a proof of payment for the advice. To stay away from such scenarios, many tax professionals use a disclaimer stating that their advice cannot be used to remove or challenge tax penalties or interests.

Must Read: All You Need to Know about IRS Penalty Abatement

Process to Apply for Penalty Abatement

A taxpayer can apply for an abatement by filling Form 843 along with a valid reason. Remember that the abatement of penalty and interests is not based on a taxpayer’s ability or inability to pay taxes, interest, or penalties; rather, it is solely based on a reasonability of the cause provided by the taxpayer. If a taxpayer wants to but is unable to pay off their dues, they can request for an Offer in Compromise (OIC), Installment Agreement, or other available provisions.

Consult an Experienced Tax Attorney, Today!

If you are facing any tax issues or want to settle your tax debt, speak with an experienced IRS tax attorney at the Law Offices of Nick Nemeth in Dallas, Texas. We have a team of IRS tax lawyers and professionals with proven expertise in dealing with all types of IRS tax related issues. 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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