Tax Penalty Abatements

Solve Your Tax Debt with the Help of a Cerritos Tax Lawyer

Overdue tax debts which go unpaid can grow by a substantial margin due to various penalties that the IRS can impose on the principal amount. In fact, penalties can make up as much as 25% of a person’s overall tax debt. Fortunately, certain individuals and businesses may be able to have these penalties reduced or eliminated completely through a process known as penalty abatement.

At Financial Recovery Law, our Cerritos tax attorneys have been helping individuals reduce their tax burden through penalty abatements for more than a decade. With one-on-one legal counsel and an unshakable dedication to preserving your personal and financial well-being, we can provide the strong guidance you need to overcome your tax issues and move towards a new financial start.

What Is a Penalty Abatement?

The IRS may provide administrative relief for certain tax penalties accumulated during a single tax period to individuals and businesses who request a first-time abatement (FTA) penalty waiver. If approved, this effective tool can be used to remove failure-to-file, failure-to-pay, and failure-to-deposit penalties.

To qualify for an FTA, you must satisfy the following requirements:

• You did not previously have to file a return or you have no penalties for the three tax years prior to the year you received a penalty.
• You filed all required returns or filed for a filing time extension
• You have paid, or have arranged to pay, any taxes due

It is important to note that failure-to-pay penalties will continue to accrue until your tax debt is paid or otherwise satisfied. For this reason, it is recommended you wait until you and your attorney have worked out a suitable solution for the principal amount of your debt prior to pursuing relief.

Other penalty-reducing strategies you may be eligible to take advantage of include:

• Presenting a reasonable cause for non-payment of your tax debt
• Identifying and correcting IRS errors
• Administrative and statutory waivers

Discuss Your Situation for Free

At Financial Recovery Law, our Cerritos tax lawyers understand the stress and helpless feeling that a mountain of tax debt can place on a person’s shoulders. With compassionate support and a detailed examination of your financial situation, we can help you get back in good graces with the IRS so you can push forward with peace of mind. We truly care about your wellbeing, and we are dedicated to doing everything within our power to help you get the results you need.