Overwhelming Penalty Charges
We systematically request abatement for each penalty type, possibly reducing your total debt by 30-50% or more through proper justification.
IRS Penalty Abatement
Remove or reduce penalties and interest that result from those penalties on your tax debt through the first-time abatement or reasonable cause relief programs.
Who This Helps
- Taxpayers facing substantial penalty charges
- First-time penalty offenders with good compliance history
- Those who experienced financial hardship or crisis
- Victims of natural disasters or serious illness
- Taxpayers with IRS processing errors
- Business owners with reasonable cause or circumstances
- Those with penalties from late filings or missed payments
- Anyone with compounding penalty and interest charges
Need IRS penalty abatement? We can help.
IRS penalties can add 25-75% or more to your tax liability, turning manageable tax debts into overwhelming financial burdens through failure-to-file penalties, failure-to-pay penalties, accuracy-related penalties, and numerous other penalty types. At Resolve Federal Tax Group, we specialize in penalty abatement that can possibly remove or substantially reduces these charges, often cutting your total tax debt by 30-50% or more through proper justification and strategic negotiation. The IRS imposes penalties to encourage compliance and punish non-compliance, but they also recognize that many taxpayers face circumstances beyond their control that result in late filing, late payment, or other penalty-triggering events. Penalty abatement programs including first-time abatement, reasonable cause relief, and statutory exceptions that can provide opportunities to eliminate penalties when you can demonstrate appropriate grounds. First-time abatement applies to taxpayers with clean compliance history for the preceding three years, offering administrative relief without requiring detailed reasonable cause or explanations. Reasonable cause abatement requires demonstrating that circumstances beyond your control such as serious illness, natural disaster, death in family or reliance on incorrect professional advice caused the prevented timely compliance. Our experienced professionals analyze your complete penalty situation, identify all abatement opportunities and prepare compelling Form 843 requests with supporting documentation that maximizes approval chances. We handle complex reasonable cause demonstrations, challenge accuracy-related penalties and negotiate penalty compromises when appropriate. Penalty abatement also stops additional interest from accumulating on penalty amounts, providing ongoing savings even after abatement is granted. Every dollar of penalties removed is a dollar saved toward resolving your actual tax liability. Don't accept penalty charges without exploring abatement opportunities. Contact Resolve Federal Tax Group for a free consultation and comprehensive penalty analysis that identifies all opportunities to reduce your IRS debt through penalty abatement.
How We Help
1
Penalty Review & Analysis
We examine your tax account transcript to identify all penalties, assess their validity and determine the best abatement strategy for your situation.
2
Eligibility Determination
Our experts evaluate whether you qualify for first-time abatement, reasonable cause relief or statutory exceptions based on your compliance history and circumstances.
3
Documentation & Filing
We prepare compelling Form 843 requests with supporting documentation that demonstrates reasonable cause or statutory grounds for penalty relief.
4
IRS Negotiation & Appeals
Our team advocates on your behalf, negotiating with IRS agents and filing appeals if necessary to secure maximum penalty reduction.
Common Problems & Solutions
Failure-to-File Penalties
These penalties (range from 5% a month to a max of 25% of the unpaid tax liability) can often be removed for first-time offenders or those with reasonable cause like illness or natural disaster.
Failure-to-Pay Penalties
With evidence, we can demonstrate financial hardship, erroneous IRS advice or other reasonable causes to have these penalties (range from 0.5% a month to a max of 25% of the unpaid tax liability) reduced or eliminated.
Accuracy-Related Penalties
We will challenge penalties resulting from the understatement of tax by showing reasonable basis, good faith effort or attempt to prove reliance on inaccurate professional advice providing we have sufficient evidence.
Compounding Interest Charges
While interest rarely abates, we can reduce the principal through penalty removal, which stops additional interest from accruing on those amounts.
Multiple Penalty Types Stacking
We will attempt to coordinate abatement requests across multiple penalty categories to maximize total relief and reduce your overall tax debt significantly.
Frequently Asked Questions
First-time abatement (FTA) is administrative relief available if you have a clean compliance history for the past three years and are current with filing and payment requirements. It can remove failure-to-file, failure-to-pay, and failure-to-deposit penalties.
Reasonable cause includes circumstances beyond your control such as serious illness, death in family, natural disasters, IRS errors, erroneous advice, fire or casualty loss or inability to obtain records. We document these circumstances to support your abatement request.
Savings vary by situation but often range from 30-70% of total debt. For example, failure-to-file penalties alone can be 25% of unpaid tax and when combined with other penalties, can result in a substantial total amount.
Interest abatement is rare and only available if the IRS caused unreasonable delay or error. However, removing penalties stops additional interest from accruing on those penalty amounts, providing significant savings over time.
We can appeal the decision, provide additional documentation, or explore alternative abatement theories. Many initial denials can be overturned with proper advocacy and evidence.
No, you can request abatement while negotiating payment arrangements. However, being current with filing requirements and having a payment plan in place strengthens your request.
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Contact us today for a free consultation. Let us help you resolve your tax problems.
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