IRS Penalty Abatement

Experienced San Diego IRS and California Tax Attorneys

One of the greatest challenges for US taxpayers with past due taxes is the accumulation of penalties. The experienced tax attorneys at Allen Barron work directly with IRS revenue officers and agents to negotiate a resolution for overdue taxes, and to seek penalty abatement whenever possible.

There are several cases where the IRS will consider the removal of penalties, including:

  • Statutory Exceptions
  • Administrative Waivers
  • Reasonable Cause Requests
  • First Time Abatement Consideration
  • Penalties that are in Error

It is important to remember that the IRS is in the business of collecting taxes and revenue for the US Treasury. Abatements can be quite challenging to negotiate, but the experienced tax attorneys at Allen Barron thoroughly understand US tax law, standardized accounting principles, as well as IRS guidelines and practices, and can structure your penalty abatement request to achieve the best possible outcome in your case.

Statutory Exceptions

The IRS is an effective organization, but even the most capable of professionals at the IRS make mistakes from time to time. If the IRS provided incorrect or misleading written advice, we are able to successfully argue for penalty abatement.  Statutory exceptions to penalties are part of US tax codes, and include other mandated reasons such as service in a combat zone, or when natural disasters or even terrorist actions result in a Presidential declaration regarding a disaster in your area.

Administrative Waivers

From time to time the IRS makes the determination not to impose penalties that would otherwise be due. Administrative waivers usually apply to a large group of people, and are situationally based.

Reasonable Cause Requests

One of the most common sources of penalty abatement is obtained by our tax attorneys when our clients faced circumstances beyond their control, or when a situation arose in spite of the efforts they made to comply. Some examples of this would include, death, a serious illness, a fire in the home or a California wild fire, and some accidents.  We are able to request abatement of penalties for our clients when they were not able to have access to information they required due to the limitations of an institution, professional or even their own company.  The IRS does not consider “ignorance” of tax laws as a valid general excuse; however, if a taxpayer makes a reasonable and substantial effort to comply, it may be possible to obtain penalty relief.  Reasonable cause requests are limited to penalties associated with the failure to file or the failure to deposit taxes.

First Time Abatement

Our tax attorneys are often able to negotiate a “First Time Abatement” for clients who have not accumulated significant penalties before, or for those who have not had issues over the prior 3 years. There are exceptions to these rules, but the IRS puts up strong resistance to taxpayers who request these abatements directly.  We are able to make a strong case for many of our clients based upon their unique circumstances, as well as established tax laws and the US tax code.

Penalties Due to IRS Error

The IRS often makes mistakes in their calculations, and penalties are often assigned where none should be owed. We stand up to the IRS, document the erroneous penalties and present the underlying accounting principles or tax law to protect our clients and hold the IRS accountable for their own errors.

Allen Barron Has Saved Our Clients Substantial Sums Through IRS Penalty Abatement

If you owe a significant amount of back taxes, or have been assessed heavy penalties and interest, the experienced tax attorneys at Allen Barron can help. We invite you to contact us by calling 866-631-3470 for a free consultation.  We will review your unique circumstances, the nature of the associated penalties and develop a strategy to pursue relief that could save you a substantial amount of money.