​IRS Penalty Abatement is a process that allows taxpayers to have penalties removed or reduced if they failed to file or pay their taxes on time. Penalties and interest can make up a large portion of unpaid taxes, but through penalty abatement or adjustment, it’s possible to eliminate or reduce these charges. Penalty abatement refers to completely removing the assessed penalties, while an adjustment means reducing or altering the penalty amount.

 

There are four main categories of penalty relief:

1. Reasonable Cause

2. Statutory Exceptions

3. Administrative Waivers

4. Corrections of IRS Errors

 

What Is Considered Reasonable Cause for Penalty Abatement?

 

The IRS may waive penalties if you can demonstrate a reasonable cause for your failure to meet tax obligations. Examples of reasonable cause include:

• Sending your tax return to the wrong address

• A serious illness or death in the family

• Mistakes made by IRS employees

• Natural disasters like earthquakes, floods, or other emergencies

 

How Do You Request IRS Penalty Abatement?

 

Approximately one-third of IRS penalties are eventually removed through successful resolution efforts. To request penalty abatement or a refund, you need to submit IRS Form 843, titled "Claim for Refund and Request for Abatement."

 

Professional Assistance with Penalty Abatement

 

If unforeseen circumstances prevented you from meeting your tax obligations, professional help can make the penalty abatement process smoother. Enrolled Agentss and United States Tax Court Practitioners can negotiate on your behalf, challenge the penalties and interest, and explore other tax relief options that may apply to your situation. Penalty abatement can be an essential step toward resolving your tax debt, and a knowledgeable tax professional can help determine whether you qualify and guide you through the process.