If you owe the IRS more than just your original tax bill, it’s likely because of penalties and interest. In many cases, these added costs double or even triple the total amount due—especially if you’ve missed multiple years or delayed filing.
But here’s the good news: you may not have to pay all of those penalties.
The IRS offers a relief program called Penalty Abatement for taxpayers who qualify. At Back Tax Rescue, we help clients across Gwinnett County navigate the complex IRS system and reduce their overall debt by removing unnecessary or excessive penalties.
In this article, you’ll learn exactly what penalty abatement is, who qualifies, and how to request it—plus insider tips on increasing your chances of success.
💼 What Is IRS Penalty Abatement?
Penalty Abatement is the IRS’s way of forgiving certain penalties added to your tax bill—often due to late filing, late payment, or failure to deposit payroll taxes.
There are three main types of abatement:
- First-Time Penalty Abatement (FTA)
- Reasonable Cause Relief
- Statutory Exception (rare cases)
While interest generally cannot be abated unless it’s linked to an abated penalty, removing just the penalties can make a major difference in the total amount you owe.
🧾 Common IRS Penalties That May Be Abated
- Failure to File Penalty: 5% of the unpaid taxes for each month your return is late
- Failure to Pay Penalty: 0.5% per month, up to 25% of your tax balance
- Failure to Deposit Penalty: For businesses—applies to payroll tax issues
- Estimated Tax Penalty: For underpayment of quarterly tax estimates
These can pile up quickly, especially if you’ve been behind for more than a year.
✅ Who Qualifies for First-Time Penalty Abatement?
The First-Time Penalty Abatement is one of the easiest ways to remove penalties—but it only applies if:
- You have filed all required tax returns
- You’ve paid or arranged to pay any taxes due (e.g., installment agreement)
- You had no penalties for the prior 3 years
📌 This option is great for taxpayers who simply forgot to file or missed a payment deadline but are otherwise in good standing.
💡 What Is “Reasonable Cause” Penalty Abatement?
If you don’t qualify for FTA, you may still be eligible for Reasonable Cause Relief. This applies when something outside your control prevented you from filing or paying on time.
Acceptable reasons may include:
- Serious illness or hospitalization
- Death in the immediate family
- Natural disaster
- Fire or records destroyed
- Relying on incorrect advice from a tax professional
- Unavoidable absence or incarceration
The IRS reviews each case individually, so documentation matters.
✅ Tip: Include doctor’s notes, insurance claims, death certificates, or police reports when submitting your request.
📝 How to Request Penalty Abatement
There are several ways to ask the IRS for penalty relief:
Option 1: Call the IRS
- Works best for First-Time Penalty Abatement
- Available for recent tax years
- Short wait time—but limited flexibility
Option 2: Send a Written Request
- Use IRS Form 843: Claim for Refund and Request for Abatement
- Include documentation for Reasonable Cause
- Best for older penalties or complex situations
Option 3: Have a Tax Professional File on Your Behalf
- We prepare your case, write a strong request letter, and ensure all documentation is included
- Increases your chance of approval by removing errors or missing details
🚫 What Penalty Abatement Doesn’t Cover
- Penalties from fraud or tax evasion
- Interest (unless linked to abated penalties)
- Ongoing non-compliance (e.g., missing filings or payments today)
- Situations where you’ve already been denied and didn’t appeal
📊 Real-Life Impact of Penalty Abatement
Case Example (Fictionalized):
Michelle from Suwanee, GA owed $14,500 in back taxes. Over $6,000 of that was late-filing and failure-to-pay penalties.
She qualified for First-Time Abatement, and we filed her request with Form 843. Her total debt dropped to $8,100—and she was able to start a payment plan immediately.
👨💼 How Back Tax Rescue Can Help
Getting penalties removed is possible—but it takes the right approach, the right documentation, and sometimes, the right wording. We know what the IRS looks for and how to position your case for success.
Here’s how we help:
- Review your IRS transcripts and calculate all penalties
- Determine your eligibility for FTA or Reasonable Cause
- Prepare and submit IRS Form 843 with supporting documentation
- Handle all communication and appeals with the IRS
We’ve helped clients across Loganville, Lilburn, Lawrenceville, and beyond reduce their total tax burden—and we can do the same for you.
📞 Don’t Let Penalties Inflate Your IRS Debt
You may already owe the IRS—but that doesn’t mean you owe more than necessary. Let’s find out if we can reduce what you owe by removing those costly penalties.
📞 Call Back Tax Rescue: 470-699-1187
📧 Email: info@backtaxrescue.com
🗓️ Schedule Your Free Consultation Now »
Even one letter could save you thousands. Don’t leave that money on the table—get expert help today.
