The IRS can assess a whole variety of penalties on a taxpayer.  Some of those penalties include Failure-to-File and Failure-to-Pay penalties under IRC § 6651, Estimated Tax Penalties under IRC §§ 6654 and 6655, Accuracy Related Penalties under IRC § 6662, or Civil Fraud Penalties under IRC § 6663.  So what to do if you find yourself facing possible IRS penalties?  A penalty abatement or other penalty relief may provide the answer.

To begin, it is important to understand the purpose of IRS penalties.  According to the IRS’s own manual:

If a taxpayer is facing an IRS penalty, there are generally 4 categories for a penalty abatement or penalty relief, including:

How Do I Request a Penalty Abatement?

In some situations a taxpayer can make an oral request for a penalty abatement and get penalty relief.  If certain conditions are met, a taxpayer or their authorized representative can call the IRS and receive a penalty abatement for penalties such as the Failure-to-File, Failure-to-Pay, and/or Failure-to-Deposit penalties.

In other situations a taxpayer or their authorized representative must submit a written request to abate any penalties, signed under penalty of perjury.  IRS Form 843 “Claim for Refund and Request for Abatement,” is often the form of chose for making such penalty abatement requests.

Do I Need Help with a Penalty Abatement?

If you find yourself facing an IRS penalty, it might be prudent to contact a tax professional to discuss your matter. McLaughlin Legal represents taxpayer before the IRS, FTB, EDD, and BOE, and has had significant success in abating certain penalties.  Feel free to contact McLaughlin Legal today to discuss your matter.

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If you are interested in learning more about penalty abatements, please feel free to contact us today for a free consultation.