Tens of millions of Americans suffer IRS penalties on top of the taxes they already owe. As some have learned the hard way, being in trouble with the IRS is no joke—penalties can include civil fines, or in rare cases, even imprisonment.
However, if a taxpayer can show reasonable cause, the IRS will abate, or decrease, its penalties. For those that don’t qualify for an Offer in Compromise, penalty abatement can be a useful tool when negotiating a repayment or Installment Agreement with the IRS.
What’s a reasonable cause? It depends on the situation. Based on our 30 years of experience, reasonable causes for penalty abatement may include:
Typically, you’ll need to show three years of paying taxes on time beforehand to qualify, but Apex Tax Defense has a great success rate in getting first time penalties removed. Talk to us—we’ll turn super-stressful into super-manageable.