Penalty Abatement

National Society
of Tax Professionals

Dozens of different penalties are assessed by the IRS every year. In fact, billions are assessed yearly. For certain situations, taxpayer’s may abate, or have the penalty abatement. You have to establish reasonable cause criteria to do this. Usually, the circumstances that determined how you got behind will determine whether you have a valid case or not for a penalty abatement. That being said, it seems that cases are individually decided. Having a Tax Professional with experience is your best bet for being successful. This often involves going to the Appeals Office, as the initial determinations at the Collections Offices or with Individual Revenue Agents are mostly denied.

The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid tax. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.

If you do not pay your taxes by the due date, you generally have to pay a failure to pay penalty of one half of one percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25 percent of your unpaid taxes.

If you want a successful tax resolution, whether a penalty abatement or whatever you quality for, having a Seasoned Tax Professional guide you thru the Tax Resolution process is best. For Superior Tax Resolution Services, call us at 1-888-689-7861. Tax Resolution is in our name.

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