IRS Penalty Abatement Lawyer

Understanding IRS Penalties

The IRS assesses a range of civil penalties for late filing, late payment, and underpayment of tax, among other issues. These penalties, along with accruing interest, can substantially increase the total amount a taxpayer owes beyond the original tax liability.

First-Time Penalty Abatement

The IRS maintains an administrative policy commonly referred to as first-time abatement, which allows certain penalties to be removed for taxpayers who have a clean compliance history over the preceding three tax years and have filed, or arranged to file, all currently required returns. This relief does not require establishing reasonable cause.

Reasonable Cause Abatement

Beyond first-time abatement, a taxpayer may seek penalty relief by establishing reasonable cause — generally a showing that the taxpayer exercised ordinary business care and prudence but was nevertheless unable to meet their tax obligations due to circumstances such as serious illness, death in the family, natural disaster, or reliance on incorrect advice from a tax professional.

Which Penalties Are Commonly Abated

The most frequently abated penalties include the failure-to-file penalty, the failure-to-pay penalty, and in some circumstances accuracy-related penalties. Each penalty has its own legal standard for abatement, and the strength of a request depends on how well the specific facts align with that standard.

Building a Penalty Abatement Request

A strong abatement request lays out the relevant facts clearly, ties them to the applicable legal standard, and includes supporting documentation such as medical records, correspondence, or other evidence corroborating the taxpayer's account. Vague or unsupported requests are far less likely to succeed.

Penalty Abatement as Part of a Broader Resolution

Penalty abatement often works alongside other resolution tools, such as an installment agreement or an offer in compromise, as part of an overall strategy for resolving an outstanding tax liability.

Working With Anthony Girand, Esq.

Anthony Girand, Esq. is a JD/MBA and Maryland attorney whose practice includes immigration, tax controversy, federal litigation, startup law, and regulatory compliance. He brings a business-minded legal perspective to matters involving federal agencies, founders, professionals, companies, and individuals facing consequential legal decisions.

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