The purpose of these fees is to act as a deterrent, urging the taxpayer to stay up-to-date with their finances and prevent future delays. Thankfully, it is possible to have some of these tacked-on penalties removed.
The IRS can accept or deny a request for penalty abatement and is known to waive penalties when the individual has a valid reason for the request.
The tax professionals at Instant Tax Solutions can help you understand the uniqueness of your unresolved tax balance and assess if a request for penalty abatement is right for you. In the end, if you decide to move forward with a penalty abatement request, Instant Tax Solutions can ensure that the tedious steps of the request are processed in an organized and timely manner.
An initial consultation with a tax expert from Instant Tax Solutions is free, confidential, and comes with no obligation. A member of our team is standing by to help you move forward from the weight of tax debt.
Understand Boise Penalty Abatement Services
An outstanding tax balance will prompt the IRS to issue a failure-to-pay penalty. This is one of the common types of penalties that the IRS can stick onto your tax bill.
Another common penalty is the failure-to-file fee, which can hit anyone who misses the deadline for submitting their year-end tax return or hasn’t filed for an extension.
Such fees can dramatically affect the weight of your back taxes, leaving you in deeper waters than you originally expected. Recognizing this, the IRS provides the opportunity for relief for some filers.
How to Request a Penalty Removal
Requesting an IRS penalty abatement can be complex, as the IRS wants proof that the individual in question made a good faith effort to pay their taxes or otherwise has a generally proactive relationship with filing and paying their taxes on time. Ultimately, it is up to the IRS whether or not they wish to grant penalty abatement, but those in good standing will typically have an easier time getting approval.
The trusted team at Instant Tax Solutions has been offering comprehensive tax support for 15+ years. Our services assess your unique situation, organize important documents, and maximize your chances of a penalty abatement approval.
Other Options for IRS Penalty Relief to Explore
Penalty abatement is just one of the possibilities for tax relief that you may benefit from, and Instant Tax Solutions can help you weigh all of your options.
Our tax professionals are skilled at deep-diving into the fine details of your tax documents and assessing how much you really owe, what leniency you can apply for, and how to move forward with a plan for repayment. The analysis of your tax history can help your tax expert understand how you qualify for IRS penalty abatement services.
The team at Instant Tax Solutions is standing by with tax experts who have helped countless individuals lower their tax bills or find other ways to manage them. Instead of settling with your current tax situation, utilize the IRS penalty abatement services of a tax pro from Instant Tax Solutions to find relief.
Who Is Eligible to File for a Boise IRS Penalty Abatement Request?
An abatement allows the tax filer to move forward with their current tax bill without certain penalties adding to the weight of the payment. This is a proactive opportunity for many filers to decrease the amount they owe the IRS, but it won’t work for everyone.
There are a few different types of penalty abatement requests available, including specific qualifications on who can apply and be granted penalty removal. The types of IRS penalty abatement requests available include:
- First-time abate
- Other administrative waiver
- Reasonable cause
- Statutory exception
First Time Abate
The first-time abate is by far the most common penalty abatement request for individuals and businesses. This allows a filer otherwise in good standing with the IRS to avoid the effects of certain penalties.
Not all penalties are eligible for removal with a first-time abate, so it is critical that the filer evaluate the details of their situation to see if filing a request would impact their bill in a dramatic way.
The only penalties eligible to be waived under an approved first-time abate are:
- Failure to file
- Failure to pay
- Failure to deposit
Other Administrative Waiver
Other types of waivers have more specific qualifications. It is common to see these waivers when changes are made to specific relief programs.
For example, in 2023, new guidelines were enacted that allowed filers relief from penalties and other collections relating to accidentally overpaying an employee.
Tax professionals from Instant Tax Solutions are ever-familiar with the latest, ever-changing tax policies. Our tax relief attorneys in Boise use our knowledge to identify any and all administrative waivers that you are eligible for, helping you pare down the size of the penalties you owe and other aspects of your tax burden.
Reasonable Cause
Another unique type of abatement request is submitting for “reasonable cause,” which refers to when the IRS believes that the filer had a valid reason not to pay the full amount of their taxes on time.
Reasonable causes can include instances where a filer had thought they submitted the right amount or made a mistake regarding the actual size of their tax liability for valid reasons. It is important to note that insufficient funds and lack of knowledge are not considered valid reasons in the eyes of the IRS.
Another example of reasonable cause penalty abatement is issued when the filer has been affected by a natural disaster or other declared local emergency. When your request is pending approval, the IRS will look into your history of payment, whether you consistently filed on time, and whether you took any steps to fix issues as soon as reasonably possible.
The tax experts at Instant Tax Solutions understand what the IRS is looking for when it comes to approving a reasonable cause request. We can help you understand if it is a productive route for you to take or if there are other forms of tax relief worth pursuing.
We’ll use your past tax history and weigh the unique details of your current tax situation against the criteria that the IRS considers.
Our goal is to ensure the filer approaches tax repayment in a way most beneficial to them while still keeping in the IRS’ good graces. If reasonable cause penalty abatement isn’t right for your specific situation, we’ll commit to finding what is.
Statutory Exception
In unique instances where the filer received improper direction or advice from a member of the IRS, the filer may apply for statutory exception penalty abatement. Clerical errors can happen, so this way, the IRS acknowledges that certain instances may be out of your control.
A filer may also apply for statutory exception penalty abatement if they mailed their return or payment in on time but were unable to get the mail in transit to the IRS because they were located in an area where there was a federal disaster.
Members of the U.S. military and those directly contracted into military operations within active combat zones may also apply for statutory exception abatement.
What Specific Penalties Qualify for Relief?
The IRS can add penalties to your tax bill for a wide variety of reasons, and only some of them are expungeable from your balance due. Depending on the type of abatement you request, the list of applicable deductible penalties may differ.
Penalties that may qualify for relief include:
- Accuracy
- Return of information
- Failing to file or failing to pay
- Underpaying estimated tax
- Failing to deposit
- An invalid check
- Other applicable penalties
Can Interest Also Be Waived?
Under current tax law, the IRS cannot waive accruing interest for penalties that have not been removed, but once they are, the related interest is automatically deducted from the balance due.
In rare circumstances, a filer may experience growing interest for a penalty they could not reasonably be aware of caused by errors or unexpected delays by the IRS. Even then, after the interest is waived, the amount due for the penalty may still stand.
What Other Tax Debt Relief Options Are There?
Other common forms of tax relief include:
- Offer in compromise
- Installment agreement
- Adjusted tax assessment following a disputed tax or amended return
- Currently not collectible
- Innocent spouse relief
Instant Tax Solutions Can Help You Through the Tax Abatement Process or Discover Your Other Options
Taxes can be an overwhelming responsibility to manage, which is why the team at Instant Tax Solutions is passionate about helping individuals overcome pressure from the IRS and build a structure for their annual tax responsibility.
We’ll be here to help you map out a plan for the coming years by helping you create a system to set aside money for your tax payments and help you fix changes or errors in your annual W-2/W-9.
When you’re ready, a professional from Instant Tax Solutions is waiting to help you lift the burden of outstanding tax payments off your shoulders and pave the road to a clean slate with the IRS. A consultation with a tax pro is always free and confidential and comes with no obligation to commit to services.
Call (888) 485-8109 or contact us online to talk with a tax expert today!
