You qualify for a penalty abatement if you tried to comply with the law, but were unable to meet your tax obligations due to circumstances beyond your control.
Fortunately, the IRS has also created the FTA – first-time penalty abatement administrative waiver. As a business or individual taxpayer, you may receive a penalty on top of what you owe to the IRS. It allows compliant taxpayers to request abatement or remove certain penalties. TheCPATaxProblemSolver, is experienced in penalty abatement. Since our inception, we have successfully eliminated IRS penalties for a wide variety of clients.
UNDERSTANDING PENALTY ABATEMENT
A penalty abatement is a tax problem resolution designed to fully eliminate or lessen the degree of IRS penalties. The IRS penalties can roll out penalties that range from imprisonment to civil fines. Those fines can be over 25 percent of the total owed to the IRS.
If you have tried applying for an offer in compromise and it was rejected, penalty abatement is the next best tax problem resolution to consider. You can use it when negotiating repayment terms or an installment agreement.