Spotlight on IRS Interest & Penalty Abatement

August 30, 2021
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Paying taxes and filing returns is a responsibility that must be taken care of timeously to avoid any issues with the IRS. Action that can be taken against defaulters include the charging of interest and penalties. While the government agency is quite determined about collecting taxes from defaulters, it offers several options to help taxpayers avoid any severe action that might potentially be taken against them. One of the avenues is IRS interest and penalty abatement.

What is IRS Tax Abatement

Tax abatement refers to getting exemption from penalties that have been levied against you for missing out on payments or not filing returns. While you might get relief from the interest and fines, you still have to pay your taxes, minus any fines. Besides, you must be a compliant candidate that has paid taxes and filed returns on time for the preceding three years to be eligible for IRS penalty abatement.

Penalties That Qualify for Abatement

To ensure taxpayers adhere to tax rules and regulations, the IRS imposes penalties on anyone that fails to comply. If you want to apply for the removal of certain penalties, they should have been levied against you under one of the following circumstances:

You failed to pay your taxes
You failed to file a tax return
You failed to pay the estimated tax in a year

Different Penalty Abatement Options

You can get IRS penalty abatement through the following three main available paths:

You Have A Reasonable Cause

You can get penalty abatement if you have a reasonable cause for breaking the tax code. If there has been a death in the family, natural disaster, fire, or any other disturbance or you are unable to obtain your records, it counts as a reasonable cause. Serious illness, death, or inevitable absence of the taxpayer or any other reason that establishes that you tried your best to adhere to the rules but failed to do so is also considered a reasonable clause. You need to provide documents to validate your reason and increase the odds for abatement.

It Is Your First Penalty

If you have a good record and paid taxes and filed returns timeously and have no penalties levied against you in the last three years of filing, you are eligible to get abatement from penalties. Anyone still in the process of getting their filing requirements or with an extension to file for the current year can apply for penalty abatement as well. Besides, if you have paid or are prepared to pay any tax dues, you can get relief from fines too.

Related Blog Post: A Look at Penalty Relief Due to Reasonable Cause

You Have A Permissible Exception

Numerous criteria would establish whether or not your case is an exception. For example, if you received wrong advice about the tax payment or return filing process, you might qualify for abatement as a permissible exception. As there are quite a few different criteria of the Internal Revenue Service, it is highly recommended to hire a tax attorney to help you determine whether or not your case qualifies as a valid exception.

Interest Abatement Options

The IRS charges interest on all dues daily until you pay the owed amount in full. While the interest is adjusted if you get relief from penalties or pay the due amount, the interest itself cannot be removed by the first-time abatement option or even if you have a reasonable clause. The only eligibility criteria are an unreasonable error or a mistake by an IRS executive in the process of carrying out their duty.

Conclusion

For anyone facing IRS penalties and interest charges, it is highly recommended to contact an experienced tax attorney to help evaluate your eligibility for relief from the extra charges. When looking for a tax attorney in Dallas TX, get in touch with the experts at the Law Offices Of Nick Nemeth. Our team of aces can help determine whether or not you qualify for penalty and interest abatement and walk you through the application process. For answers to all your questions about abatement of penalties and interest and to discuss your case, fill out our “Contact Form” or email jamie@myirsteam.com. You can also give us a call on (888) 890-0523 (Toll Free).

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Brent Vahle

19:13 02 May 24

I called to see if they could help reduce some penalties and fees. The person I spoke with told me it might be counterproductive for them to take my case since their feels would likely equal the amount of penalty/interest abatement. I decided to pass on moving forward but was so happy to hear a legal team, or any business for that matter, who has that much integrity. I feel most others would likely try to take my money anyway. I hope I never have to go through this again, but if I do, I will definitely use the Law Offices of Nick Nemeth!

Jason Winkle

18:44 02 May 24

Jaime Flores was very friendly, professional, and knowledgeable. She gave me some very valuable information which helped guide me with a plan of action. The free consultation is very much appreciated.

Matthew Swigart

12:14 02 May 24

Great attorney who was able to provide quick and useful advice. Although my situation did not warrant their services, they still took the time to discuss solutions I could explore. I highly recommend visiting this office!

Tony Pantoja

12:57 09 Apr 24

Very professional and very knowledgeable, Jamie Flores was very straight forward and professional, a firm that doesn’t just take your money, Thanks

Carla Atwal

10:52 02 Apr 24

Nick was wonderful in guiding me with direction on some tax questions I had. He was concise, and to the point, and was happy to provide general info to me at no charge. I truly appreciate him and would highly recommend him.

Miguel Alvarado

15:56 25 Mar 24

By far the best attorneys I have ever worked with. They’re are very helpful and supportive from day one. They went above and beyond to make sure all my documents were submitted on time and gave updates as soon as they received them. I cannot name a single flaw in their work. Their team of assistants are very professional and seem to all be on the same page. I’ve made multiple phone calls and sent a ton of emails to their staff and they were able to help me all through the course of the case. I cannot express my gratitude enough for how excellent they handled my case.

Lucy Foy

06:55 19 Jan 24

My first appointment I had with, Tax Attorney Nick Nemeth, gave me such a sense of relief. He listened and gave me his professional advice, Mr Nemeth took my case. I was well kept updated, by phone calls and letters. That really impressed me and gave me so much confidence in them. The case went on for a couple of months. The day I received the call from one of his team members Kyle, informing me that the case was resolved and that I owed absolutely nothing to the IRS, I was overwhelmed with joy. I would recommend this law firm to anyone that needs help, with any tax issue. Thank you, to the Law Firm of Attorney Nick Nemeth and his team.

Bradley Runyon

20:17 13 Jan 24

I received a tax bill in the mail from the IRS last year in 2023. The fees and penalties I owed were something I myself could not afford. I reached out to Nick Nemeth's firm and received the best experience you could imagine. The team was professional, educational, and fast. If you have a tax issue with the IRS using another firm other than Nick Nemeth's would be an error in judgment. I would recommend their services above others.

Sue Hulseman

19:55 11 Jan 24

Working with Nick Nemeth and his team to resolve my debt with the IRS was the best decision I could have made. I felt such relief knowing I didn’t have to deal with the IRS myself. They did a wonderful job and were responsive to my questions and kept me abreast of my case. My outcome was exactly what I was hoping for. I strongly recommend using them if you have an issue to resolve with the IRS.

R G

20:53 21 Dec 23

I had an incompetent tax preparer, who also ignored several notices from the IRS, which in the end resulted in a lien on my property. I did not know what to do and an attorney friend recommended that I contact the Nick Nemeth Law Offices. I met with Jamie Flores and Ivan Nalbantov in December 2021 for a free consultation, and right away was impressed by their thorough examination of my paperwork and extensive knowledge of IRS tax laws. I felt not pressured and appreciated their advice and in the end decided that I would pursue resolving the issue by myself. I paid the IRS Civil Penalty and, as recommended also submitted a letter to the IRS requesting a refund and explaining what happened. I am glad to report that my persistence finally paid off. My case took two years to resolve and I finally received a full abatement/refund check from the IRS in December 2023. I could not have done this without the straightforward recommendation of Jamie and Ivan; and I highly recommend the Nick Nemeth Law Offices to anyone needing help with the IRS.

Susan Wilson

03:27 25 Jan 23

I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.

Sarah Howard

03:44 14 Nov 22

I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.

M W

00:33 07 Aug 22

I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.

Spoilly Girl

23:49 03 Aug 22

The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.

Eddie Walt

19:44 12 Jul 22

During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!

What is IRS Tax Abatement

Penalties That Qualify for Abatement