Penalty abatement refers to a taxpayer’s right to contest or dispute tax penalties. The IRS charges dozens of different types of penalties (148, at last count, up from 14 in 1955 – for those keeping score at home), but the three most common are:
- The late filing penalty
- The late payment penalty
- The penalty for not making federal tax deposits
These three penalties combined can add a whopping 65% to your total IRS bill. If your tax debt is more than two years old, you’ve maxed out all these penalties and therefore over half your total debt is penalties.
If you are saddled with IRS penalties, contact our office for a consultation on penalty abatement. Our attorneys have achieved abatement of hundreds of thousands of dollars in penalties for our clients. A request for abatement of penalties must demonstrate that the taxpayer had “reasonable cause” for the relevant actions/omission that generated the penalties. Demonstrating reasonable cause requires a tailored letter citing specific Internal Revenue Code provisions upon which the taxpayer is relying. Our attorneys understand the law and are prepared to assist you in abating your tax penalties.
From our office in Loveland, we provide legal counsel for individuals and business clients in communities throughout the greater Cincinnati area and Southwest Ohio. Our offices are open for consultations from 9:00 a.m. to 5:30 p.m. on weekdays. Evening and weekend appointments may be available by special arrangement. Our attorneys will often make appointments to meet at client locations.