What is a Penalty Abatement?

Penalty abatement is a process where taxpayers can request the reduction or removal of penalties imposed by the IRS for non-compliance with tax obligations.

How do I know if I qualify for IRS penalty abatement?

Qualification for IRS penalty abatement depends on factors such as having a reasonable cause for non-compliance or being eligible for first-time penalty abatement.

How does first time IRS penalty abatement work?

First-time IRS penalty abatement is available to taxpayers who have a clean compliance history and meet specific criteria, allowing them to request relief from penalties.

What are reasonable causes for relief?

Reasonable causes for relief include circumstances beyond the taxpayer's control, such as natural disasters, serious illness, or other significant life events.

IRS Penalty Abatement

Reduce IRS penalties on your back taxes with help from experienced tax attorneys. Get the support you need to regain financial stability and peace of mind.

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IRS penalties can feel like you’re being kicked while you’re down.

And the process of requesting first-time IRS penalty abatement or reasonable cause relief can be a time-consuming, stressful, and overwhelming process on top of the stress you’re already dealing with.

But getting the penalty relief you need doesn’t have to be an ordeal.

Man gets news of successful penalty abatement from the IRS

Make the road to penalty relief easier with Wiggam Law.

Penalties for non-compliance with tax obligations pile up quickly. If you run out of time to file your taxes or don’t have the money to pay taxes, civil penalties can make a bad situation feel inescapable. Our tax attorneys help you get relief from the seemingly never-ending pile of bills.

Relieve Your Financial Stress

Reduce and Remove IRS Penalties

Prevent IRS Action from Escalating

How to Get IRS Penalty Abatement

The tax professionals at Wiggam Law can help you organize and frame your request to get relief from your penalties. We know the proper procedures and are able to negotiate with the IRS for approval of your request for penalty or tax forgiveness.

If you are seeking abatement for reasonable cause, we help you:

Communicate your reasonable cause in writing

Clearly describe circumstances outside of your control

Provide proof of events for the time period of non-compliance

Follow up with the IRS on abatement requests

In addition to federal penalty abatement, state Departments of Revenue often offer similar programs to remove penalties from your tax liabilities. Wiggam Law can help you request relief from the Georgia DOR as well as the IRS.

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Wiggam Law: Tax Expertise You Can Trust

Wiggam Law puts every client first, delivering attentive, personalized support in your journey to relief from tax burdens. We guide you through the penalty abatement process from start to finish to give you the best reasonable chance of success.

Let’s get your life back on track.

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Georgia attorneys working on a penalty abatement case

IRS Penalty Abatement FAQ

Abatement is the process of removing penalties after the IRS has evaluated your situation. There are different types of penalties, but the most common are Failure to File (FTF) and Failure to Pay (FTP). Each type of penalty requires a different procedure to request relief.

Penalty relief is available from the IRS if you meet the criteria for either of the two following ways to abate civil penalties:

First-time IRS Penalty Abatement (FTA): A one-time only waiver available to taxpayers in good standing with at least three years of compliant tax history.
Reasonable Cause Relief (RC): The IRS will allow a taxpayer’s penalties to be abated when the taxpayer can demonstrate that they tried to file or pay on time, but were not able to comply due to unforeseen circumstances outside of their control.

The abatement process can take two to three months for the initial evaluation. If an appeal is made, it can take an additional six to twelve months.

The IRS offers a first-time abatement (FTA) waiver if you have at least a 3-year history of compliance. Filing for an FTA will get you relief from penalties for late filing or payment.

You may qualify for relief from penalties under the FTA if you:

Have no penalties for the 3 tax years prior
Filed all required returns or filed an extension of time to file
Paid, or arranged to pay, any tax due

The FTA is the easiest of all penalty relief options to apply for and receive, but it only removes penalties from one tax period.

Penalty abatement for reasonable cause, is based on all the facts and circumstances unique to your situation. The IRS will consider any reason that proves you tried to comply with federal tax obligations, but were unable to do so. Reasonable cause includes, but is not limited to:

Fire, casualty, natural disaster or other disturbances
Inability to obtain records
Mistakes made
Death, serious illness or unavoidable absence
Extreme hardship
Mistaken advice

IRS Penalty Abatement Success Stories

$29,570 Saved

The taxpayers owed for tax years 2014-2016 and the IRS had filed Federal Tax Liens against their real estate. We assisted the taxpayers with removing the liens from their property so it could sell. Additionally, we negotiated a penalty abatement with the IRS, which resulted in the taxpayers receiving a refund over $29,570 after the closing.

$18,101 Saved

When the client came to our firm, she owed over $17,842 to the IRS based in part on incorrect tax returns her husband filed jointly on her behalf. Her account was already actively in collections. We filed an innocent spouse request with the IRS, keeping her protected from any collection enforcement and successfully argued that the IRS should not attempt to collect this debt from her. The IRS ultimately agreed with our arguments and completely abated her tax liability, saving her over $17,842 in taxes. Additionally, we negotiated a penalty abatement with the Georgia Department of Revenue saving additional taxes of $259.