Penalty Abatement
Reduce or Eliminate IRS Penalties
Penalty Abatement Services
If you’ve fallen behind on taxes, you may already know that the IRS adds penalties and interest on top of your balance — sometimes making it impossible to catch up. The good news is that you may qualify for penalty relief, also called penalty abatement.
At TaxRally we help taxpayers request penalty abatement and potentially save thousands of dollars.
What is Penalty Abatement?
Penalty abatement is when the IRS removes or reduces penalties that were added to your tax debt. The IRS will consider this if you can show that you had a reasonable cause for falling behind or if you qualify for first-time penalty abatement.
Common penalties that may be reduced or removed include:
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Failure-to-file penalties
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Failure-to-pay penalties
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Accuracy-related penalties
Who Qualifies for Penalty Abatement?
You may qualify if you meet one of these situations:
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First-Time Penalty Abatement (FTA):You have a clean compliance history and this is your first major IRS issue.
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Reasonable Cause:You had circumstances beyond your control, such as illness, natural disaster, or financial hardship, that caused you to miss deadlines.
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IRS Error:The IRS made a mistake when assessing your penalties.
