Penalty Abatement

Definition

The process of formally requesting that the IRS reduce or eliminate penalties that have been assessed against a taxpayer for non-compliance with tax obligations such as late filing or late payment. Abatement can be pursued through several routes including First Time Abatement, reasonable cause arguments, or statutory exceptions depending on the taxpayer's situation. A successful abatement request can result in significant savings for clients who owe penalties they may legally not be required to pay.