Penalty Abatement
What does it mean?
Taxpayers who have failed to submit or pay a penalty can ask the IRS to “abate” the penalties. Penalty abatement is the process of eliminating penalties from a taxpayer’s account once they have been assessed.
How does it work?
Failing to meet tax deadlines can cause a lot of trouble, especially if the IRS starts adding fines. Fortunately, the IRS offers tax penalty relief to people who have been unable to pay their taxes due to unforeseen circumstances. A penalty abatement is one type of tax relief you can get. If you can prove that you have reasonable grounds, you may be able to get your penalties reduced. We can help you determine if you are eligible for a penalty abatement.
In most cases, a lack of finances is not a valid reason for a waiver. The reasons why you don’t have enough money, on the other hand, may fulfill the fee waiver conditions. To be eligible for the first-time penalty reduction, you must meet the following requirements:
- You haven’t had any penalties or been requested to file a tax return in the three years prior to receiving the penalty;
- You’ve submitted all of your required tax returns, or you’ve requested an extension; and
- You paid your taxes in full or made arrangements to settle your tax debt (payment plan).
Proving that you meet all the requirements is already a feat to accomplish on your own, but with ETS Tax Relief on your side, you have the best chance at succeeding.
Other Services
Cryptocurrency Audits
As cryptocurrency gains popularity, it's important to speak with professionals who can help you navigate the ins and outs of this fairly new digital currency. We can represent you throughout the entire cryptocurrency audit process.
IRS & State Audit Representation
Nobody likes being audited! Unfortunately, it’s something you have to deal with if you’ve been selected for an audit, as ignoring it only makes it worse. IRS audits are the process of reviewing your accounts and finances to ensure you reported everything correctly. If this is happening to you, seek help right away!
IRS Payment Plans
An IRS payment plan, also known as an installment agreement, allows you to pay back your tax debt in a more manageable way. It’s also the most common way for taxpayers to pay their outstanding tax liability. You can negotiate a monthly payment that fits your needs instead of paying back a hefty lump sum.