An Overview of IRS Tax Penalty Waiver

Tax return filing and tax payment before the deadline is mandated under the law. Failure to pay, file and other reasons can lead to the levy of penalties and interest, thereby, inflating tax liability. Although the IRS pushes taxpayers to meet their tax obligations through penalties and interest, it also offers tax penalty waivers to lessen the burden on taxpayers. Continue reading to learn more about IRS tax penalty waivers. 

What is the IRS Tax Penalty Waiver?

IRS tax penalty waiver is to help taxpayers to get relief from penalties incurred on any unpaid balances under certain conditions. First-time penalty abatement is the most common IRS tax penalty waiver offered to individuals and businesses. The main aim of the IRS penalty waiver is to help taxpayers who usually pay taxes and file tax returns on time but were unable to pay due to uncontrollable circumstances. When it comes to proving your eligibility for an IRS tax penalty waiver in Dallas, contact an expert tax lawyer in Dallas to make your case. 

IRS Tax Penalty Abatement Request Criteria 

Taxpayers, if eligible, can make a request to the IRS for penalty abatement for penalties charged on any of the following: 

Failure to File Failure to PayFailure to DepositInformation ReturnAccuracy relatedDishonored checkUnderpayment of estimated tax Other applicable penalties

 

As mentioned earlier, sometimes taxpayers fail to comply with IRS tax laws due to some uncontrollable circumstances. In such cases, penalty abatement comes to the rescue. It is an IRS  tax relief program, where taxpayers can request the IRS to either remove or reduce the penalty amount. The IRS offers taxpayers three types of tax penalty waivers:

First-time abatement and administrative waiverStatutory exceptionReasonable cause

In case of reasonable cause and statutory exception, taxpayers need to prove their case for penalty abatement by providing reasonable reasons for non-compliance with the IRS tax laws. This is where tax attorneys come to help. They help clients understand their eligibility, which waivers to apply for, and how to form a strong case. Tax attorneys also represent their clients in the court of appeals should they want to appeal IRS decisions.

Conclusion 

IRS tax penalty waiver is a big source of relief to already burdened taxpayers. It reduces the pressure of accruing tax penalties and resultant interests. Taxpayers are required to meet certain criteria specified by the IRS to qualify for penalty abatement and prove their reasons and good faith, which can be simplified with legal advice from a tax attorney. Dallas residents seeking help for IRS tax penalty waiver can consult a reputable tax attorney in Dallas experienced in providing help on all types of IRS tax-related matters.