Tax Relief Counsel:

IRS Penalty Abatement Lawyer

Are IRS penalties taking a toll on your finances? Our IRS penalty abatement lawyer is here to offer relief. We can help you explore penalty abatement options to alleviate your tax burden.

IRS Penalty Abatement Lawyer in Washington, D.C.

If you are unable to pay your Federal taxes on time, you may face penalties from the IRS that could lead to serious consequences. These penalties might include losing your property or even going to jail. If you have received an IRS penalty, it’s important to speak with our IRS penalty abatement lawyer in Washington, DC as soon as possible. Tax Relief Counsel is dedicated to assisting individuals and businesses in resolving all types of IRS tax debt-related problems not only in DC, Maryland, and Virginia but throughout the US.

Contact our office today for a free virtual conversation to speak with our experienced tax attorney and better understand your options.

What Types of Penalties Can Be Abated?

The IRS offers penalty abatement (relief) for a variety of penalties, depending on specific circumstances. Here are some common penalty types where abatement might be possible.

Failure to File

The failure to file penalty may be imposed if you miss the deadline to file your tax return. Reasonable causes like illness, natural disaster, or unexpected absence might qualify you for relief.

Failure to Pay

This penalty applies if you don’t pay your tax bill on time. The IRS might consider granting abatement if you have reasonable cause, such as an inability to pay due to hardship or reliance on bad advice.

Accuracy-Related Penalty

This penalty is for significant tax understatements due to negligence or disregard for tax rules. However, if the understatement was due to reasonable cause or reliance on a qualified tax professional, relief might be possible.

Failure to Deposit

Failure to deposit applies to businesses that fail to deposit payroll taxes withheld from employees in a timely manner. Once again, reasonable cause or first-time mistakes could be grounds for abatement.

Estimated Tax Penalty

If you didn’t pay enough in estimated taxes throughout the year, you could face an estimated tax penalty. Reasonable cause or reliance on bad advice from the IRS will be considered.

It’s important to note that there’s no guarantee you’ll meet the criteria for relief. IRS officials carefully consider the facts and circumstances of each case to make a decision. Moreover, interest charges typically continue to accrue even if a penalty is abated.

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How Does the IRS Determine Eligibility for Penalty Abatement?

Eligibility for penalty abatement hinges on whether a taxpayer can demonstrate reasonable cause for their tax mistake. Here’s a breakdown of the factors the IRS considers.

Reasonable Cause

Reasonable cause is the key concept underlying penalty abatement. It essentially means that you exercised ordinary care and prudence but were still unable to meet your tax obligations accurately or on time.

Some of the factors IRS officials will weigh when considering reasonable cause include:

The Nature of the Mistake: Was it a simple error or a more complex issue?
Your Efforts to Comply: Did you seek professional advice and make a good-faith effort to file or pay on time?
Your History of Compliance: Do you have a history of filing accurate tax returns on time?
Unexpected Events: Did an illness, natural disaster, or other unforeseen circumstance prevent you from complying?

Here are some common examples of reasonable cause:

Serious illness, death, or unavoidable absence of yourself or a close family member
Business closure or bankruptcy
Fire, flood, or other natural disasters
Military deployment
Incorrect information provided by the IRS
Reliance on a qualified tax professional who made an error

Not every excuse qualifies as reasonable cause. The IRS won’t approve penalty abatement on any of the following grounds:

Negligence or carelessness.
Lack of knowledge of tax laws
Disorganized records or bookkeeping
Willful neglect or intentional disregard of tax rules

If you’re unsure whether the basis of your penalty qualifies as reasonable cause, your best bet is to consult a knowledgeable tax lawyer.

What Is First Time Penalty Abatement?

First Time Abatement (FTA) is an administrative waiver the IRS offers that removes certain tax penalties for a single tax year. It’s essentially a free pass for taxpayers with clean compliance histories who make mistakes on their returns.

Here’s a breakdown of what First Time Abatement covers and how it works:

What Penalties Does First Time Abatement Apply To?

First Time Abatement typically applies to the failure to file and failure to pay penalties. To qualify for FTA, you must meet the following criteria:

First-Time Offense: This is the most crucial factor — you can only benefit from FTA once for a specific penalty type.
Clean Compliance History: You must not have had any failure to file, failure to pay, or accuracy-related penalties assessed in the past three years.

While you can request FTA yourself, consulting a tax law professional is the most prudent course. A tax attorney can help you determine whether you qualify, gather the necessary documentation, and increase your chances of a successful outcome.

How Our Tax Lawyer Can Help You

The stress of a looming IRS penalty can be overwhelming. Don’t try to deal with this situation alone. Our skilled tax lawyer can be your advocate throughout the process. Here’s how.

Meticulous Analysis
Investigation: We’ll dig deeper to identify the reasons behind the penalty — was it a simple mistake, a complex tax situation, or an unexpected event?.
Penalty Review: We’ll dissect your IRS penalty notices to understand the specific charges and underlying tax issues that triggered them.
Strategic Planning
Building a Strong Case: We’ll gather the necessary documentation and craft a compelling narrative to support your request for penalty relief.
Identifying Grounds for Abatement: Based on our analysis, we’ll explore all potential avenues for penalty abatement.
Communication and Negotiation
Effective Negotiation: Our capable tax lawyer will present your case to the IRS, negotiating for a reduction or removal of your penalties.
Clear Communication: We’ll keep you informed at every step, explaining all options and next steps in a clear, easy-to-understand manner.
Representation
Appeals Support: If the IRS initially denies your abatement request, we’ll guide you through the appeals process and represent you before the IRS Appeals Office.
Dedicated Representation: You’ll have a dependable tax lawyer by your side at every stage of your penalty abatement journey.

Don’t face the IRS alone. Let our seasoned tax relief lawyer fight for you. Our goal is to minimize your tax burden and ensure a fair resolution.

Why Choose
Tax Relief Counsel?

When you work with Tax Relief Counsel, you’ll benefit from the following advantages:

Proven Results

Our tax lawyer knows how to get penalties reduced or removed.

Personalized Approach

We’ll listen, analyze, and craft a plan just for you.

Clear Communication

We'll explain everything clearly to ensure that you’re informed.

Competitive Rates and Flexible Plans

We promise to work within your budget.

The knowledge and resources offered by Ramy Shabana, veteran tax lawyer and founder of Tax Relief Counsel, could be the difference-maker in your case.

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FAQs

What evidence do I need to support my request for penalty abatement?

The evidence needed to support a request for penalty abatement depends on the specific circumstances of the taxpayer’s case.

Generally, taxpayers must provide documentation or explanation demonstrating reasonable cause or eligibility for First Time Abatement. This may include records of events or circumstances beyond the taxpayer’s control, medical records, death certificates, legal documents, or other relevant evidence to substantiate the claim.

How long does the IRS take to process penalty abatement requests?

The processing time for a penalty abatement request can vary based on factors like the complexity of the case, the IRS’s workload, and the volume of requests the agency is currently handling. It may take several weeks to several months for the agency to review and make a decision on a penalty abatement request.

What are the potential outcomes of a penalty abatement request?

The potential outcomes of a penalty abatement request include approval, partial approval, or denial.

If approved, the IRS may reduce or eliminate the penalties assessed. In some cases, the agency may approve the request but only reduce a portion of the penalties. If denied, the penalties will remain, and the taxpayer will receive a written explanation of the reasons for the denial.

What happens if the IRS denies my request for penalty abatement?

If the IRS denies your request for penalty abatement, you’ll have the option to appeal the decision by filing a formal appeal with the IRS Office of Appeals.

Alternatively, you may explore other options for resolving the outstanding tax debt, such as negotiating a payment plan or availing yourself of additional IRS relief programs. It’s essential to consult a qualified tax professional or attorney to determine the best course of action in response to a denial of a penalty abatement request.

Have Questions?
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Tax Relief Counsel is here to help you navigate the complexities of penalty abatement and seek a fair resolution. Contact us today to get the assistance you need.