Tax Penalty Abatement

tax advisor

Penalties incurred from filing taxes late or failing to pay taxes on time are not only frustrating but costly for taxpayers. The IRS will sometimes agree to forgive these fees under a provision called penalty abatement. Kim & Rosado LLP has talented attorneys for negotiating with the IRS in these matters. They tap into their skills as former IRS attorneys to get penalty abatement for qualifying taxpayers. When you contact them for help, they'll assess your situation and make sure you get the fair and reasonable solution you deserve.

Qualifying for Penalty Abatement

To qualify for penalty abatement, you'll need to offer what the IRS considers a suitable reason for failing to pay your taxes or paying your taxes late. The following situations may qualify for penalty abatement:

  • Reliance on a tax professional
  • Ignorance of tax law
  • Medical illness (personal or a family member)
  • Natural disasters
  • Significant financial hardship
  • Death in the family

Along with your claim, you'll need to provide evidence that will convince the IRS to grant this provision.

First Time Penalty Abatement

Time Penalty Abatement (FTA) can be granted to taxpayers to relieve them of costly penalties and accrued interest. Individuals and entities can request an FTA for failure to file or failure to pay penalties. Businesses can also request it for failing to file 1065 or 1120S returns or for failing to timely make deposits. In order to qualify, taxpayers must be current on all of their tax filings. Taxpayers also must have a three-year without penalties prior to the year they received a penalty. If the IRS concludes that the taxpayer has demonstrated sufficient tax compliance, they may accept the request and abate the penalties.

How Do I File for Penalty Abatement?

Before filing for penalty abatement you'll need to be sure you qualify and are able to communicate a convincing argument to the IRS. Call tax attorneys Kim & Rosado LLP at 408-290-0280 today or request a consultation online now to get started.