What is Penalty Abatement?

Tax liabilites are one of the more difficult hurdles to overcome simply because of the onset of interest and penalties that are applied to a taxpayer’s balance every month that the bill goes unpaid.

Penalties and interest can quickly become a large portion of a taxpayer’s bill. Since penalties and interest are added to added to a tax liability on a daily compounded basis, it can result in a tax bill being nearly impossible to pay off completely – especially if the taxpayer is attempting to repay through a Installment Agreement.

Penalty abatement is a relief program through the IRS Fresh Start Initiative that allows the penalties that are on a balance to be forgiven. While penalty abatement does not wipe out an actual tax liability, it can lower a balance by thousands of dollars.

How Do You Qualify For Penalty Abatement?

To qualify for penalty abatement, you must first ensure that you are compliant with the IRS.

IRS compliancy is based on your current tax filing status. If you have unfiled tax returns, then you are not compliant with the IRS and you are not qualified for penalty abatement or any other type of IRS Fresh Start Initiative relief program.

If you need assistance with filing your taxes, please contact a TaxRise specialist at 833-419-RISE (7473).

Once you are up to date with your tax filings, you can submit a request to the IRS for penalty abatement.

If you are not applying for first-time penalty abatement, you will need to prove a reasonable cause as to why you paid or filed late.


Can I Qualify For Penalty Abatement On My Own?

Yes, you are able to qualify for penalty abatement on your own. Generally, a first time penalty abatement is much easier for a taxpayer to achieve.

If you have already filed for penatly abatement and then accrued more liability, interest, and penalties, it will be more difficult to prove your case to the IRS a second or third time.

Penalty abatement is often just one part of a tax relief company’s strategy to help free you of any tax liabilty. It is best to consult with a professional before taking this step as it may end up hurting your future financial freedom.

Why Work With TaxRise To Secure My Penalty Abatement?

When you work with TaxRise to secure your penalty abatement, our tax professionals will ensure that penalty abatement is part of a larger strategy to achieve your financial freedom.

Our professionals use penalty abatement as a leverage tool during negotiations and know the best time to apply for this resolution option to best serve your case.

Next Steps

If you’re interested to see if penalty abatement is right for you give us a call at 833-419-RISE (7473).

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