What is Penalty Abatement?

Penalty abatement is a relief program through the IRS Fresh Start Initiative that forgives the penalties on an outstanding balance. Although penalty abatement cannot wipe out a tax liability, it can lower a tax balance by thousands of dollars.

The IRS will only apply penalty abatement for a reasonable cause, and your chances of achieving it increase significantly if you get the help of a tax professional. Penalty Abatement can be considered a form of Fresh Start tax relief.

When Would You Need Penalty Abatement?

Tax liabilities are one of the more difficult hurdles to overcome simply because of the onset of interest and penalties applied to a taxpayer’s balance every month that the bill goes unpaid.

Penalties and interest can quickly become a large portion of a taxpayer’s bill as the IRS applies them to tax liability on a daily compounded basis. The accumulation of compounded interest can result in a tax bill being nearly impossible to pay off in full, especially if the taxpayer is attempting to repay through an Installment Agreement.

TaxRise can help you secure your penalty abatement and ensure that it is part of a larger strategy to achieve your financial freedom.

How Do You Qualify For Penalty Abatement?

To qualify for penalty abatement, you must first ensure that you are compliant with the IRS.

The IRS bases your compliance on your current tax filing status. If you have unfiled tax returns, you are not compliant with the IRS, and you are not qualified for penalty abatement or any other type of IRS Fresh Start Initiative relief program.

If you need assistance with filing your taxes, please contact a TaxRise specialist at 833-419-RISE(7473).

Once you are up to date with your tax filings, you can submit a request to the IRS for penalty abatement.

If you are not applying for first-time penalty abatement, you will need to prove a reasonable cause as to why you paid or filed late.

Can I Qualify For Penalty Abatement On My Own?

Yes, you can qualify for penalty abatement on your own. Generally, first-time penalty abatement is much easier for a taxpayer to achieve.

If you have already filed for penalty abatement and then accrued more liability, interest, and penalties, it will be harder to prove your case to the IRS a second or third time.

Penalty abatement is often just one part of a tax relief company’s strategy to help free you of any tax liability. It is best to consult with a professional before taking this step, as it may end up hurting your future financial freedom.

The Process of Qualifying for Penalty Abatement

You can request penalty abatement at any IRS level. An IRS campus, automated collection system, or personnel at local IRS officers. Keep in mind a local IRS office can only grant a penalty abatement of up to $100. Requesting penalty abatement is free.

The IRS will not accept a request for a program of the Fresh Start Initiative without sufficient evidence. When mailing a request, include as much evidence as possible to support your claim. Documentation is the best form of evidence against the strict IRS Fresh Start Program qualifications.

The documentation you will need includes – but is not limited to – doctor statements, fire department reports, insurance claims, or death certificates of family members. We would also advise including a letter with your Form 843 explaining your situation.

Why Work With TaxRise To Secure My Penalty Abatement?

When you work with TaxRise to secure your penalty abatement, our tax professionals will ensure that penalty abatement is part of a larger strategy to achieve your financial freedom.

Our professionals use penalty abatement as a leverage tool during IRS resolution discussions and know how to best serve your case by applying for penalty abatement at the most appropriate time.

Next Steps

If you’re interested in seeing if penalty abatement is the best option for you, give us a call at 833-419-RISE (7473). 

Qualify today for a Fresh Start.

Learn how easy it is to qualify for tax savings.