General Questions

When you get a Penalty Abatement, it simply means that the Penalty fees associated with the late filing of a return, late payment of tax and late deposit of tax are forgiven. The interest however is rarely forgiven and has nothing to do with the penalty. Compelling circumstances must be present that meet the Reasonable Cause Criteria, as defined in the Internal Revenue Service (IRS) code.

Depending on what was the cause of the penalties, there will be a fee charged. The fee is based off of a percentage of the balance that was owed from the original due date which would be April 15th of the year in question.
You (the taxpayer) may acquire penalties in several different ways, including a failure to file, a failure to pay, fraud due to accuracy on a return, or willful negligence. You can also get penalties from under reporting the amount that you earn working, whether from W-2s not being filed or not reporting on a 1099 Quarterly Estimated Tax. Lastly, you can obtain penalties from an Audit done by the IRS
You can only get penalties forgiven from one filing year and you can pick any year you want, so we would want to pick the one year with most fees.
There are only 2 ways to qualify for penalty abatement:
  1. 1st Time Abatement: must be fully compliant for 3 straight years and if there are any balances owed, you must be on an Installment Agreement (IA) Plan in order to qualify.
  2. Reasonable Cause: Medical (must be in hardship during this time), Natural Disaster, etc


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  • Sunday: Closed