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Penalty Abatement

In many tax debt cases, the Penalty and Interest portion of the tax debt is quite significant. If you are facing penalties for not filing or paying your taxes on time, you may be able to get those penalties removed (or even get past penalties and interest refunded) through penalty abatement or penalty adjustment. Abatement refers to eliminating an assessed tax liability, and an adjustment references reducing or altering an assessed tax liability.

Reasonable Cause

If there is a ‘reasonable cause’ for abatement or adjustment, the IRS may be willing to review the penalties which created a tax liability. Reasonable cause can include:

  • Mailing the tax return or payment on time but writing the wrong address on the envelope; using the wrong amount of postage
  • A death or illness in the family
  • An error caused by an IRS employee
  • The destruction of records by a fire, flood, or other catastrophe

About one-third of tax penalties are eventually removed by the IRS through successful tax resolution. To request that a tax penalty be removed or refunded, you need to fill out IRS Form 843. This form of tax resolution is called a “Claim for Refund and Request for Abatement.”

We can work with you to make payment arrangements that the IRS will accept. If there were circumstances beyond your control that prevented you from paying your tax debt and led to delinquency, we are able to challenge any penalties and interest that have built up. Relief from penalties falls into four separate categories:

  • Reasonable Cause
  • Statutory Exceptions
  • Administrative Waivers
  • Correction in Service Error

Get it Right the First Time.

Contact Tax Mediation Services for trusted tax professionals.

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Tax Mediation Services Beverly Hills Office
8383 Wilshire Blvd Suite 800

Beverly Hills, CA 90211 | (877) 637-3783

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Tax Mediation Services Beverly Hills Office
8383 Wilshire Blvd Suite
800 Beverly Hills, CA 90211
(877) 637-3783