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By Michael S. Anderson of Anderson Tax Law logo for Arizona tax attorney Michael S. Anderson P.C.
  • IRS Penalty Elimination

    google-penaltyLife is difficult.  Sometimes filing tax returns is the last thing on our minds.  Sometimes paying a tax bill is just impossible.  The IRS penalizes you for filing late and paying late.  An IRS penalty can be large.  In certain situations, however, they can be eliminated.  

    IRS Penalty Elimination or “Abatement” is a real thing.  

    The IRS will agree to remove penalties for filing late and paying late if you can convince it that you had a good reason for doing so.  In certain limited circumstances, penalties can be eliminated even when you can’t provide a good reason.

    The system assumes you are guilty and this forces you to start the process by making a formal penalty abatement request.

    We can help with this.

    When we request penalty elimination or abatement based on cause, we typically look at all the facts surrounding the situation as it existed when the return was filed late or paid late.  Some factors that help are:

    • Death, serious illness, or unavoidable absence;
    • Unable to obtain records;
    • Incorrect advice from the IRS;
    • Incorrect advice from a tax advisor;
    • Fire, casualty, natural disaster, or other disturbance;
    • Official disaster area; and
    • IRS Service error

    Certain penalties can also be removed in bankruptcy.  Chapter 13 bankruptcy treats most penalties as dischargeable debt no matter the age of the tax debt and stops additional penalties from being assessed.

    Call the Office if you feel that you had good cause for your late payment or late filing and want to discuss how to get the penalty removed.