Tax Penalty Abatement

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

  • Failure to file penalties, for failing to timely file a return;
  • Failure to pay penalties, and underpayment penalties, for failing to timely pay a tax when due;
  • Accuracy related penalties, such as negligence penalties and substantial understatement of income penalties;
  • Tax fraud penalties; and
  • Criminal tax penalties.


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 causes exists for removing or reducing your tax penalties.