IRS Penalty Abatements – Reduce or Eliminate your IRS Penalties
The IRS and state of Michigan have discretion in assessing penalties, but it can be a procedural maze to gain a penalty abatement. A good tax attorney knows the limitations and the procedures to follow to minimize your penalties.
Depending on your history of compliance, you may quality for an administrative waiver known as a first time abatement. This IRS penalty waiver is generally reserved for taxpayers with an isolated incident of non-compliance combined with an otherwise clean history, particularly within the last three years.
If you don’t meet these first time criteria, obtaining a penalty abatement is not so simple and will require detailed legal analysis and argument. In general, the IRS can grant a penalty abatement if it falls into one of four categories: 1) reasonable cause; 2) statutory exceptions; 3) administrative waiver or 4) correction of service error.
If you have substantial penalties, don’t waste your chance to get them waived or substantially reduced. Call Ayar Law for a free, in-person consultation.