Penalty Abatement

The IRS will not remove penalties from your account simply for asking nicely. There is a specific legal progress to receive an abatement of IRS penalties. You may have heard conflicting statements regarding the IRS’ ability to reduce your penalties however the fact of the matter is if you qualify the IRS will abate some or all of your penalties. Tabb & Associates will evaluate the facts of your individual case to determine if you qualify for a penalty abatement and then devise a strategy to secure the penalty abatement with the IRS.

In order to qualify for an IRS Penalty Abatement you must show good cause as to why the penalties should be removed. One or more of the following causes as to why you failed to pay taxes on time would be a reason to pursue a Penalty Abatement:

  • An act of God such as a natural disaster
  • Theft or other criminal act by an employee or non-employee caused the business to be unable to cover taxes in a timely fashion
  • Death or serious illness in the family
  • Absence from the business that was outside of your control
  • Reliance on incorrect or false information given to you by a CPA, tax preparer or in some instances IRS employee
  • Chemical or alcohol dependency
  • And in some cases, financial hardship outside of your control

To begin the Penalty Abatement process, Tabb & Associates will request a statement of facts from you detailing what happened to cause you to fall behind with taxes. This statement must be time specific and directly relevant to your business. Through this statement Tabb & Associates will draft a legal argument and abatement request. It will be submitted directly to the IRS and Tabb & Associate will handle all following negotiations. The IRS will not approve a request to remove penalties simply because you ask nicely. There is a specific legal process to follow and Tabb & Associates will ensure that your abatement request will secure the best results.

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