One of the most frustrating parts of owing back taxes isn’t just the debt itself, it’s the penalties and interest the IRS tacks on top. In some cases, these extra charges can double what you owe. Understandably, one of the most common questions we hear is:
“Can I get IRS penalties removed?”
The answer is yes, in some cases. This process is called penalty abatement. Below we’ll go over what it means, who qualifies, and how to request it.
What Is Penalty Abatement?
Penalty abatement is the IRS’s way of saying, “We’ll forgive some or all of the penalties if you have a good reason.”
It does not erase the tax debt itself (or the interest on the tax), but it can dramatically reduce what you owe. For example:
If you owed $10,000 and didn’t file or pay, penalties and interest could push the balance to $15,000 or more. If you qualify for abatement, those penalties could be reduced or removed, saving you thousands.
Types of Penalties the IRS May Abate
The IRS can apply for more than 150 different types of penalties, but the most common penalties taxpayers face are:
- Failure-to-File Penalty – for not filing your tax return on time.
- Failure-to-Pay Penalty – for not paying taxes owed by the deadline.
- Accuracy-Related Penalty – for substantial errors on a return.
These penalties can range from 5% per month (failure-to-file) to 20% of your underpayment (accuracy penalty). (IRS Penalty Relief)
Who Qualifies for Penalty Abatement?
There are three main paths to penalty relief:
- First-Time Penalty Abatement – If you’ve been compliant in the past, the IRS may grant a one-time forgiveness. To qualify for this, you must have no penalties in the prior three years, file all required returns, and pay (or arrange to pay) any taxes due.
- Reasonable Cause Relief – If you can show you had a legitimate reason for falling behind, the IRS may remove penalties. Examples include serious illness or death in the family, natural disaster or fire, inability to obtain records, and reliance on bad tax advice.
- Statutory Exception – Rare, but possible if the IRS gave you the wrong information in writing.
What About Interest?
The IRS rarely removes interest. Interest continues to accrue until the balance is paid in full. However, if penalties are reduced, the interest charged on those penalties may also be reduced.
In other words, abatement can shrink both penalties and part of the interest but won’t erase all of it.
Why Work with a Tax Attorney?
While some cases are straightforward, others require careful explanation and negotiation. That’s where legal help makes a difference. We know which penalties are most likely to be abated. We can present your case with the right documentation and legal arguments. We communicate with the IRS on your behalf, saving you the stress and confusion of navigating it alone.
Conclusion
It is possible to remove IRS penalties, and in many cases, it’s worth thousands of dollars in savings. While interest is harder to eliminate, penalty abatement can make tax debt much more manageable.
If you’re overwhelmed by penalties, call McClure & Stewart today. Our attorneys can evaluate your case, request abatement on your behalf, and help you build a path to real resolution.
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