Understanding Abatement of Penalties and Interest
  • January 21, 2020
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If you are behind on your IRS tax payments, it is important to be mindful of IRS penalties and interest charges. The longer your debt remains unpaid, the more penalties and interest can accumulate. If neglected for a long enough time, IRS penalties and interest can become a serious issue. In fact, IRS penalties can rise up to 25% of your debt and quickly make your debt balloon. Fortunately, there are IRS penalty abatement options available to select candidates. Wondering if you could be one of them? Read on to find out!

IRS Penalty Abatement

Are you looking to find a way to avoid IRS penalties and interest charges? Let’s go over the main IRS penalty abatement options.

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First Time IRS Penalty Abatement

If you are current in your filings and have no penalties from the previous three years, you might be able to apply for first time IRS penalty abatement. Keep in mind though that a history of good behavior is not enough. To qualify you should also have paid or arranged to pay (through a payment plan) your tax debt. While not everyone is eligible for this IRS penalty abatement option, it is definitely one of the best.

IRS Penalty Abatement Due To Reasonable Cause

If you have failed to file your taxes or pay subsequent penalties, make sure to consider this IRS penalty abatement option. To get rid of your penalties through this method, you have to prove to the IRS that you had reasonable cause to fail to fulfill your obligations. According to the IRS, a reasonable cause can be a natural disaster, a major disturbance, serious illness, death of the taxpayer and immediate family, or inability to obtain records. If you think you are a candidate for this IRS penalty abatement option, make sure to gather evidence to support your case against the IRS.

Penalty Abatement Due To Statutory Exceptions

There’s one more condition under which the IRS might grant a taxpayer the abatement of penalties and interest. This can only happen if you have received an erroneous advice on your taxes in written form. If this is the case, penalty abatement is a real possibility.

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Your Best Shot At IRS Penalty Abatement

Tax debt forgiveness and IRS penalty abatement might sound too good to be true. However, under the right conditions and with the right help, this can be a real possibility. At the Law Offices of Nick Nemeth,PLLC, we have helped thousands of clients find relief through IRS penalty abatement. It’s advisable to get professional help to boost your chances of getting rid of or lowering the penalties and improving your standing with the IRS. Find out how to work your way out of your IRS tax problems by reaching out to our attorneys. Call us today for a free consultation at (972) 426-2553 or send us a message.

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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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