Reasonable Cause for Penalty Abatement
  • February 19, 2020
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Have you been hit with IRS penalties and interest? If your standing debt with the IRS has started to cause you trouble, it’s time to act. Especially if your debt is a result of what the IRS deems a reasonable cause. Seeking IRS penalty abatement and debt relief sooner, rather than later, will boost your chances of successfully finding a favorable resolution.

Reasonable Cause IRS Penalty Abatement

One of the common types of IRS penalty abatement is known as Reasonable Cause Abatement. This type of abatement of penalties and interest is granted only when you can prove to the IRS that you had a good reason for not fulfilling your tax filing or payment obligation.

To determine the legitimacy of a reason behind non-compliance, each case is evaluated on a one-on-one basis. The IRS not only takes into account the reported reason for not filing or paying, but also how it individually affected your ability to do so. This involves an evaluation of supplied proof, financial history, and general background.

Related Blog: All You Need to Know about IRS Debt Forgiveness

What Qualifies As Reasonable Cause?

To qualify for reasonable cause penalty abatement from the IRS, you need to be able to prove your case. This means showing you had a good enough reason to not file or pay your taxes. Acceptable reasons involve trying situations that prevent you from fulfilling and are also out of your control.

Some legitimate examples that qualify for IRS reasonable cause penalty abatement are:

  • Death of a close family member
  • Serving jail time
  • Being secluded in a rehab facility
  • Natural disasters in which your safety or records were compromised
  • Being held hostage
  • Being kept from your duties due to disturbances such as strikes, riots, etc.

Related Blog: IRS Fresh Start Program: 4 Pillars of Hope for Struggling Taxpayers

How To Make Your Case For IRS Penalty Abatement

Supplying pieces of evidence like written documents can help build a better case. Additionally, the IRS can require you to provide more information on your background and financial standing. To get rid of any penalties and interest, the IRS will pay close attention to your tax history. If you’ve missed payments or filing your taxes before, this can affect your chances at an abatement.

In Conclusion

The IRS is understanding of serious circumstances, especially when they’re out of your control. If you missed out on your taxpayer obligations but have reasonable cause for doing so, you have a good chance at IRS penalty abatement. To optimize your chances at IRS penalty abatement, work with a tax law attorney from The Law Offices of Nick Nemeth, PLLC. Our expertise in penalty abatement goes a long way in making the process easy and simple. Contact us today for a free consultation by calling us at (972) 426-2553. You can also email us at jamie@myIRSteam.com to get more information on IRS debt forgiveness.

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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.
M WM W
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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