IRS penalties can add 25% or more to your total balance. Failure-to-file, failure-to-pay, and accuracy penalties all have grounds for removal. Our team identifies every valid abatement argument and files the proper requests.
Penalty abatement is the formal process of asking the IRS to remove or reduce civil penalties assessed against a taxpayer. The most common are the failure-to-file penalty (5% per month, up to 25%), the failure-to-pay penalty (0.5% per month), and the accuracy-related penalty (20% of the underpayment). The IRS penalty relief program outlines the main grounds for abatement.
These penalties are not permanent. The IRS has authority to remove them when taxpayers demonstrate reasonable cause, first-time penalty abatement eligibility, or other statutory grounds. Our ex-IRS specialists know which arguments the IRS accepts and how to document them properly.
The IRS First-Time Abatement (FTA) waiver is available to taxpayers with a clean compliance history (no penalties in the prior three years). FTA applies to failure-to-file, failure-to-pay, and failure-to-deposit penalties without requiring you to demonstrate reasonable cause. It is one of the most underutilized tax relief tools available, and we check eligibility on every case at no additional cost.
Reasonable cause applies when a taxpayer exercised ordinary care and prudence but was unable to comply due to circumstances beyond their control: serious illness, natural disaster, death of a family member, or reliance on incorrect professional advice. Each case requires documentation and a well-written narrative addressing the specific IRS standard. Our specialists draft these arguments for hundreds of cases annually.
On a $100,000 IRS balance with full failure-to-file and failure-to-pay penalties, abatement can remove $30,000 or more before interest is addressed. Combined with a successful Offer in Compromise or installment agreement, the total savings can be substantial. Every case analysis includes a penalty review at no additional cost.
Ready to resolve this? As the tax attorney team Albuquerque and New Mexico trust, we offer a free consultation with a resolution specialist — available by phone Monday through Friday. Request a callback or call (505) 420-3320.
Our team resolves the full range of IRS enforcement actions: from wage garnishments and bank levies to federal tax liens, Offers in Compromise, and audit representation. Business owners dealing with payroll tax issues or a Trust Fund Recovery Penalty notice will find dedicated support as well.
We serve all communities in the greater metro: Rio Rancho, Santa Fe, Los Lunas, Bernalillo, Corrales, Belen, Edgewood, and Española, in addition to clients statewide for federal matters.
15 minutes with our resolution team. A concrete plan, yours to keep. No obligation, no pressure.
