IRS Penalty Abatement

If you have been assessed IRS penalties for late filing, late payment, or other tax compliance issues, you may be eligible for penalty abatement—a reduction or elimination of the penalties imposed. The IRS may grant relief if you can demonstrate reasonable cause, first-time penalty forgiveness, or financial hardship. 

📌 Step 1: Review Your Penalty Notice
✔️ Carefully examine the IRS penalty notice to understand the reason for the penalty.
✔️ Determine if the penalty is valid and whether you are responsible for it.

📌 Step 2: File a Penalty Abatement Request
✔️ Submit Form 843, Claim for Refund and Request for Abatement.
✔️ Clearly explain why the penalty should be abated (e.g., reasonable cause, first-time offense, undue hardship).
✔️ Provide supporting documentation (e.g., medical records, financial statements, disaster declarations).

📌 Step 3: Mail Your Request to the IRS
✔️ Send the completed Form 843 and supporting documents to the address provided on your penalty notice.
✔️ Keep copies of all documents for your records.

📌 Step 4: IRS Review Process
✔️ The IRS will review your request and determine whether the penalty should be abated.
✔️ They may request additional information or schedule an audit if necessary.

📌 Step 5: IRS Decision Notification
✔️ If approved, the IRS will send a notice specifying the amount and reason for the abatement.
✔️ If denied, the IRS will issue a notice explaining the reasons for rejection.

📌 Step 6: Appeal (If Necessary)
✔️ If you disagree with the IRS decision, you may file an appeal with the IRS Office of Appeals.
✔️ Appeals must be submitted within 30 days of receiving the IRS decision notice.

💡 Reasonable Cause: You had a valid reason for noncompliance (e.g., serious illness, natural disaster, death in the family).
💡 First-Time Offense: If you have a clean compliance history, the IRS may grant first-time penalty relief.
💡 Financial Hardship: Abating the penalty would prevent undue financial burden.
💡 Other Circumstances: Errors made by the IRS or reliance on incorrect IRS information may also qualify for penalty abatement.

✔️ Provide a detailed and specific explanation for your request.
✔️ Include strong supporting documentation to back up your claim.
✔️ Be professional and courteous in your communication with the IRS.
✔️ Submit your request as soon as possible to prevent additional interest and penalties.
✔️ Seek professional assistance from an Enrolled Agent, tax attorney, or CPA if needed.

If you're facing significant tax penalties, 📞Contact Us at 720-988-0688 for expert guidance on filing a successful IRS Penalty Abatement request and maximizing your chances of approval.