Tax Penalty Abatement

The IRS imposes numerous penalties as a means of encouraging compliance with the tax laws. In fact, there are more than 140 different penalties, such as:

  • Failure to file penalties for failing to timely file a return
  • Failure to pay and underpayment penalties for failing to timely pay the full tax when due
  • Accuracy-related penalties, such as negligence penalties and substantial understatement of income penaltie
  • Tax fraud penalties
  • Criminal tax penalties
Dealing with tax penalties and interest

Most penalties are automatically assessed by the IRS’s automated system without any consideration of the underlying reasons for the taxpayer’s inability to fully comply with the tax laws. However, if the taxpayer can establish “reasonable cause” for the failure, the IRS is often willing to abate some or all of the penalties. The most currently released statistics show that approximately 33% of all penalties assessed are later removed for reasonable cause.

If you have been assessed substantial tax penalties, call the Business Law Group today, at (719) 355-8840, and let one of our experienced tax attorneys evaluate whether reasonable cause exists for removing or reducing your tax penalties.