What
What Penalty Abatement Includes
Penalty abatement is the process of requesting that the IRS remove or reduce penalties assessed on a tax account.
This may include:
Benefits:
- Reviewing IRS account transcripts
- Identifying penalties applied to the account
- Determining eligibility for penalty relief
- Preparing and submitting the abatement request
- Providing supporting documentation when required
- Communicating with the IRS during the review process
Each request is evaluated by the IRS based on the facts of the case.
Common
When a Payment Plan May Be Appropriate
The IRS may apply several types of penalties to a tax account.
These often include:
Benefits:
- Failure to file penalties
- Failure to pay penalties
- Estimated tax penalties
- Accuracy related penalties
Penalties continue to increase until the underlying issue is resolved or relief is granted.
When
When Penalty Abatement May Apply
The IRS may consider removing penalties under certain conditions.
These may include:
Benefits:
- Reasonable cause due to circumstances beyond the taxpayer’s control
- First time penalty abatement eligibility
- Events that affected the ability to file or pay on time
- Situations supported by documentation
Each request depends on the specific details of the taxpayer’s situation and IRS guidelines.
Impact
Impact of Penalty Relief
Reducing or removing penalties can lower the total balance owed.
This may:
- Decrease the overall tax liability
- Improve the ability to resolve the account
- Make payment plans more manageable
Penalty abatement does not remove the original tax owed, but it may reduce the total balance.
Other
Other IRS Resolution Options
Penalty abatement is often part of a broader resolution strategy.
Depending on the situation, additional options may include:
- Installment agreements for monthly payments
- Filing prior year tax returns
- Offer in Compromise to settle tax debt
- Temporary collection holds based on financial hardship
The appropriate approach depends on the details of the IRS account.
Why
Why Work With Advanta Tax
Advanta Tax provides:
- Direct communication with the IRS on your behalf
- Proper preparation of abatement requests
- Houston-based service with local support
- Accurate review of IRS penalties and account history
- Clear evaluation of eligibility
We focus on accurate handling of IRS procedures and documentation.
How We Work
Our Process
We follow a consistent process when handling tax resolution matters.
1
Account
Review
We obtain IRS records to confirm balances and filing history.
2
Compliance
Check
We identify current balances owed to IRS and/or state and file missing returns.
3
Evaluation of
Options
We determine which IRS programs may apply.
4
Implementation
We proceed with the appropriate resolution strategy.
5
Follow Up
We continue communication with the IRS until the matter is addressed.
Service Area
Houston-based,
nationwide service
Advanta Tax Consulting is based in Houston and serves clients nationwide.
FAQ
Frequently Asked Questions
Penalty abatement is a request to the IRS to remove or reduce penalties assessed on a tax account.
No. Penalty relief depends on eligibility and the circumstances of the case.
No. It applies only to penalties. The original tax owed remains.
Reasonable cause may include circumstances that prevented timely filing or payment, supported by documentation.
The timeline varies depending on the case and IRS processing times.
Accredited & Trusted
Recognized Credentials & Memberships
National Association of Enrolled Agents
Texas Society of Enrolled Agents
Asian Chamber of Commerce
Get In Touch
Contact Advanta Tax
Contact our office to discuss your IRS tax situation and review available options.
Consultations for Tax Resolution Issues are Free
address
4009 EE Bellaire Blvd
Houston, TX 77025
Phone
Fax
713-664-7230