The IRS can impose a huge number of tax defaulters who are either not paying taxes or not paying on time. These penalties may also include monetary fines imposed on the taxpayer. Some of the main causes for these tax penalty abatement are Failure-to-File which is imposed if you file your taxes after the deadline and Failure-to-Pay which is imposed because of late tax return after you have filed the taxes. These penalties can be abated by the IRS if you carefully present your case.

Penalty Abatement

What is Tax Penalty Abatement?

Penalty Abatement is a way for the taxpayer to get their IRS late payment penalty removed by the IRS. The IRS has presented this solution to the taxpayers to help them with their tax-related processes. In some cases, the IRS can waive the penalties and just ask you to pay the owed taxes without any penalties. It encourages the taxpayer to pay their outstanding taxes.

Criteria of Tax Penalty Abatement

The taxpayers can ask the IRS to waive their taxes in some cases. But they have to be eligible to apply for the penalty abatement criteria for IRS to successfully accept their application. Here are a few criteria that you must see before applying for a penalty abatement:

  • The taxpayer has successfully filed all the taxes that were owed. Or, the taxpayer has come to an agreement with the IRS for an extension on the deadline.
  • The taxpayer should not owe any tax to the IRS. Alternatively, they have had already come to an agreement with the IRS on the payment plan for those outstanding taxes before applying for the penalty abatement.
  • The track record of the taxpayer is clean, meaning that the IRS has not imposed any tax penalties on the taxpayer in the past three years.

Few reasons to keep in mind before applying for Tax Penalty Abatement?

You need to keep a few things in mind before applying for penalty abatement:

  • While an abatement request you may reduce some interest and penalties, you still are on the original tax liability owed hook. In case you lose your appeal or request for penalty abatement, you may need to expect to pay for the full balance immediately. This can cause financial hardship for some. 
  • You need to have a convincing argument as to why you believe your claim is valid. No one wants to pay extra taxes, interest, and penalties, but without any justifiable reason for your penalty abatement request, you still have to pay. 
  • Don’t ask for abatement unless you have a clean record with the taxing authorities. Having previously unfiled returns can doom your request from the initial stage. 

Effectively Present Your Case Against Your Penalties on Your Taxes

For you to successfully get your penalties waived, you must present your case to the IRS in a good faith. You must, basically, show that financial hardship prevented you to keep current on your taxes. If you are applying for trust, then you must also include the person who had the authority to file the taxes at the time.

If you were in a hospital at the time, attach copies of your hospital bills and receipts to reinforce your case. If you were facing other legal issues, make sure to enclose that documentation. If you follow all these requirements and fulfill the criteria for the penalty abatement as mentioned earlier, then there is a chance that you might succeed in getting it.

There are no hard and fast rules that can guarantee a tax abatement. But to make your case even more effective, it is always better to get professional help to better guide the process.

Let us help you with San Diego, California Tax Penalty Abatement

Having complete knowledge of the subject matters a lot to achieve results and tax appeals are no different. Tax Attorneys at My Tax Settlements understand tax law as we are been practicing for years. We take pride in helping our clients understand tax law and assisting them with their audits and appeals. 

If you want to qualify for an abatement to IRS, you need to provide legal and valid documents to support your claim. It might seem simple, but it requires professional attention.

This is where My Tax Settlement will help you to negotiate with IRS for first-time abatement. Before you do anything else, use your free consultation with us, and we’ll help you get a game plan in order. Call us at 619-318-8564 or email us at [email protected].

Sleep better after knowing that all your tax-related concerns are in capable hands. If you need help with a specific tax issue or appeal, please free to contact us anytime you want. So, what are you waiting for? Call today!


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