Penalty and Interest AbatementPTPS2016-06-30T14:10:01+00:00
Penalty and Interest Abatement
People ask us constantly if their penalties and interest can be removed. We assume that you have come to this page because you too want to know if your interest and penalties can be waived.
Typically interest will not be waived so we will focus on penalties here. Penalties may be waived if (1) you are able to show cause or (2) you are a 1st time offender. When determining whether to request abatement of penalties, the Tax Resolution Institute determines if the benefits warrant the fees charged for this work.
Aside from the cost of requesting a penalty abatement, we consider how much of a burden will be placed on the client. In some cases, requesting an abatement requires substantial documentation which may put an undue burden on the client as well as causing a great deal of time to be spent.
Prize vs. Price
In some cases requesting to waive penalties is a “no brainer” and we will jump at the chance to do so. In other cases the cost of requesting the abatement may outweigh the benefit. For example, if a client owes $100,000 that they cannot afford to pay and we can request that the IRS remove $2,000 in penalties, it may cost the client money that they can better spend elsewhere without wasting valuable time knowing that success will only lower the client’s liability to $98,000…an amount they can no more afford to pay.
We can Help
Needless to say, if your case warrants a request for abatement of penalties, you have come to the right place. We have over 25 years experience helping clients with issues such as yours.