IRS Penalty Abatement Help | Reduce or Remove Tax Penalties

IRS penalties can make up a large portion of your tax debt, increasing your balance and making it harder to catch up. The good news is that IRS penalties against businesses and individuals can often be abated, and we can help.

20/20 Tax Resolution can identify the penalty relief you qualify for and help you secure it with the IRS or the state tax agencies. Get in touch to talk to an expert.

Dealing With IRS Penalties? You’re In the Right Place

If any of these situations apply to you, our penalty abatement services are the right fit:

Increasing tax balance due to penalties and interest.
Owing more than expected because of added penalties.
Being unable to qualify for certain payment plans because penalties have pushed your balance over the threshold.
Incurring penalties when events out of you control caused you to pay or file late.
Facing penalties due to IRS errors or incorrect written advice from the IRS.
Dealing with penalties after an audit.
Watching penalties grow your balance, even though you’re on a payment plan.

You’re in the right place if you have issues with or questions about tax penalties. We’ve seen it all at Resolución fiscal 20/20 and are here to assist you.

What Is IRS Penalty Abatement?

Penalty abatement is when the IRS removes or reduces tax penalties. These are the most common penalties that qualify for abatement:

Failure to file: When you miss the tax return filing deadline
Failure to pay: When you fail to pay what you owe by the deadline
Failure to deposit: When a business misses the deadline to deposit withheld taxes

The IRS may also abate failure to file informational return penalties for businesses, accuracy penalties incurred during audits, and sometimes other penalties as well.

Interest accrued on top of penalties, but if the IRS waives a penalty, they also abate the interest associated with that penalty. You can qualify for IRS penalty abatement even if you’re not going through financial hardship.

When Does Penalty Relief Apply?

The IRS abates penalties for taxpayers who have a history of compliance, taxpayers who can show reasonable cause, and in cases where the penalty was caused by the IRS.

You may qualify for reasonable cause abatement if you’re dealing with a situation like the following:

An illness, death, or family emergency
A natural disaster
Professional advice that led to your mistake
Financial or personal hardship

However, none of these factors guarantees that you get relief. The IRS looks at each case individually, and getting relief means proving you acted in good faith, but events out of your control prevented you from paying.

Remember that each case is different. Whether or not you qualify depends on individual circumstances and facts, but the most important thing is to work with a tax professional who can build the supporting arguments you need to win these cases.

What If You Ignore IRS Penalties? Why You Need Help Now

The IRS informs you of penalties you owe through official collection notices. If you do nothing, you may have to deal with these issues:

Quickly accumulating penalties that increase your balance
Compounding interest on top of penalties
Higher monthly payments if pursuing a payment plan
Increasing risk of tax liens and levies against your assets if you don’t pay
Putting business operations at risk by not paying state or federal taxes

Without a penalty abatement strategy, you could be unnecessarily paying thousands that you could save. Acting quickly and talking to a tax professional at 20/20 Tax Resolution will help you maximize your savings.

How We Help Reduce or Remove IRS Penalties

Our team is experienced in a range of tax penalty issues, and we help taxpayers pursue abatement quickly and correctly. Here is a look at how we help:

Full review of your IRS account transcripts and history
Identification of all penalty types and eligibility paths

Determination of the best strategy for abatement
Building a strong case for the IRS based on your circumstances
Submitting applications and penalty relief forms and letters
Handling IRS communications, including revenue officer defense
Integrating penalty relief into a broader tax resolution strategy
Applying for state penalty relief for businesses in addition to federal
Securing state penalty abatement for individuals

Your case is unique, and so are our penalty abatement services. Contact us to find out more about our process.

Penalty Abatement as Part of a Larger Tax Strategy

Abatement helps to reduce your balance, and if you’re already paid, abatement can lead to a refund from the IRS. However, if you still have outstanding tax debt, we can help you secure these resolution options.

Installment agreement: Once we lower your balance with penalty abatement, you may be able get lower monthly payments or qualify for certain types of IAs that you couldn’t qualify for before.
Offers in compromise: If your financial situation qualifies for a tax settlement, you may not even need to pursue penalty abatement and may be better off pursuing an OIC. We’ll let you know.
Currently not collectible status: If you’re experiencing financial hardship, we’ll reduce the balance through abatement and then use CNC to stop collections against you.
Innocent spouse relief: If applicable, we can help you secure this type of relief when you’re dealing with tax liabilities due to a spouse or former spouse.

The first step is usually lowering your balance so that other resolution options become more feasible or manageable. With 20/20 Tax Resolution, you’ll be doing a lot more than removing penalties. You’ll be getting help with your entire tax strategy, optimizing your tax savings.

When to Get IRS Penalty Abatement Help

Working with a firm isn’t necessary for every taxpayer. If your case is very simple and you are clearly eligible, you can likely handle it on your own by calling the IRS.

However, many penalty cases are complex. You may not fully understand your options. Here are cases when you should definitely seek help:

Penalties make up a large part of your tax balance.
You’re trying to get a payment plan or modify a current one.
The IRS has denied you penalty relief in the past.
You want to address your whole tax strategy to lower liability.
You aren’t sure if you qualify for penalty abatement or which type you qualify for.
Penalties are putting your business at risk.
You have multiple years of penalties and need a strategic approach.

In these cases, talk to the team at 20/20 Tax Resolution right away to get help with relief before your balance grows.

Why Choose 20/20 Tax Resolution for Penalty Relief?

Our tax professionals understand how frustrating IRS issues can be, especially penalties that increase your balance and generate interest. Work with us to get these benefits:

Exclusive focus on tax resolution services
IRS penalty relief program experience
Strategy personalized to you
Help for both individuals and businesses
Practical, results-driven, timely solutions

Contact 20/20 Tax Resolution today to get started. If you’ve already applied on your own and been denied, we’ll help you pursue an appeal.

FAQs About Penalty Abatement

What is IRS penalty abatement?

The IRS provides penalty relief for some taxpayers who have a good compliance history over the last three years or who had a reasonable cause for missing a deadline or obligation. Abatement may reduce or fully remove IRS penalties.

Do I qualify for IRS penalty relief?

Many taxpayers qualify. For first-time abatement, you need to have been in full tax compliance over the last three years with no penalties. Reasonable cause may apply if you are experiencing an issue like a natural disaster or illness that got in the way of your ability to pay or file.

Can my tax interest be abated?

Yes, the IRS will also remove or reduce interest charges connected to the penalties that are being abated.

Can my tax penalties automatically be removed?

Yes, the IRS now applies automatic first-time penalty abatement if you have stayed in compliance in the last three years.

Can my business qualify for IRS penalty abatement?

Yes, businesses can qualify for penalty abatement if they meet requirements like good compliance history or reasonable cause.

What if my penalty abatement request is denied?

You may be able to appeal the IRS’s rejection of your request. Typically, you have 30 days from the date of your rejection letter to file an appeal request. Your denial letter will usually include instructions for filing an appeal.

Find Out If You Qualify for Penalty Relief

Before agreeing to pay your full tax balance, explore your options for penalty relief. Always act quickly. You may have the opportunity to significantly reduce your balance with IRS penalty abatement.

Contactar con 20/20 Tax Resolution for a consultation to evaluate your options and find the right path forward.

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