Do you need help with Penalty Abatement?

Penalty abatement is a provision offered by the Internal Revenue Service (IRS) that allows taxpayers to request a reduction or removal of penalties applied to their tax accounts due to non-compliance. Penalties can be assessed for various reasons, including failing to file a tax return, failing to pay taxes on time, or making errors on tax returns. The IRS may abate these penalties if the taxpayer can show that their failure to comply was due to reasonable cause and not due to willful neglect.

​

​

There are several common penalties that the IRS may consider for abatement:

1. Failure-to-file penalty: Applied when a taxpayer does not file their income tax return by the due date, including extensions.

2. Failure-to-pay penalty: Imposed when a taxpayer fails to pay the taxes reported on their return by the due date.

3. Accuracy-related penalty: Charged when there is a discrepancy in income reported or when the taxpayer shows negligence or disregard of rules and regulations.

​

The Process of Requesting Penalty Abatement

1. Identifying the Penalty: The first step is to identify the specific penalties that have been charged to your account.

2. Gathering Supporting Documentation: Collecting relevant documents that support your case for reasonable cause is crucial. This might include hospital records, death certificates, relevant correspondence, etc.

3. Writing a Formal Request: The abatement request must be detailed and clearly state the reasonable cause for the non-compliance. This written statement must be accompanied by the supportive documentation.

4. Filing the Request: The request can be filed with the IRS via mail or, in some cases, over the phone, depending on the nature and amount of the penalty.

​

Why is it Important to Have a Seasoned Tax Attorney?

​

Expertise in Tax Law and IRS Procedures

Tax laws and IRS procedures are complex and constantly evolving. A tax attorney is well-versed in the nuances of these laws and can navigate them effectively. They understand the specific criteria that the IRS considers when determining "reasonable cause," and can present your case in a manner that aligns with these criteria.

​

Strategic Advice and Guidance

A tax lawyer will provide strategic advice on how to approach your penalty abatement request. They can assess the strength of your case and advise you on the likelihood of success. Their experience with similar cases will guide the development of a compelling argument and the preparation of persuasive documentation.

​

Representation and Communication with the IRS

Dealing directly with the IRS can be intimidating and challenging. A tax attorney will handle all communications with the IRS on your behalf, ensuring that your request is presented clearly and professionally. This includes following up on the status of your request and negotiating directly with IRS representatives.

​

Maximizing Your Chances of Success

The expertise of a tax attorney increases the likelihood that your penalty abatement request will be successful. They know what the IRS looks for in such requests and how to emphasize aspects of your situation that meet these requirements.

​

Legal Protection

A tax attorney ensures that your legal rights are protected throughout the process. They can help you avoid making statements or submitting information that could potentially harm your case. Their guidance is invaluable in navigating the legal complexities of the IRS system.

​

Peace of Mind

Having a seasoned attorney by your side provides peace of mind. Knowing that an experienced professional is handling your case can alleviate the stress and anxiety associated with IRS penalties and the abatement process.

​

​

Penalty abatement can significantly reduce the financial burden of IRS penalties, but the process involves detailed legal and procedural requirements. The representation of a seasoned tax attorney is crucial in navigating this process effectively. A tax attorney's deep knowledge of tax law, combined with their strategic planning and negotiation skills, greatly enhances the likelihood of a favorable outcome. For taxpayers in Phoenix, Arizona, where both state and federal tax issues can complicate one's financial obligations, the expertise of a skilled tax lawyer is not just beneficial—it is essential.