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Penalty Abatement

Penalties for failure to file, failure to pay, failure to withhold and remit sufficient taxes add up quickly and they are costly, sometimes even doubling your debt.

Penalty Abatement: Possible penalties you might encounter include:

  • Penalties for failure to file your tax return
  • Penalties for  failure to pay taxes owed according to your return
  • Penalties for not pre-paying enough of your tax either by having taxes withheld from your income, or by making timely estimated tax payments
  • Penalties equal to 100% of the amount of the payroll taxes you failed to send in


 The IRS has guidelines that it must follow to determine whether or not they can remove or reduce penalties. The good news is that if they remove or reduce the penalties, the interest can also be removed.

Employees at the IRS who have the authority to remove or reduce penalties use a guide called the Internal Revenue Manual or IRM. The IRM gives the discretion to remove (abate) penalties for the first time offense. Penalties may also be removed for reasonable cause, but you must convince the IRS that your situation warrants reasonable cause.

There are “safe harbor” rules that will help to keep you out of a penalty situation. Knowing these rules helps me to provide guidance to you on how to meet these safe harbor rules. Part of the IRS problem assistance I provide is educating you on how to legally avoid these types of issues.


If you don’t ask, you don’t get. I know how to ask.