IRS/State Tax Penalty Abatement Requests
How to File Without an Agent or Attorney
1. Determine Eligibility Choose one method:
A) First-Time Penalty Abatement (FTA): ● Filed all required returns ● No penalties in prior three years ● Any outstanding taxes paid or in arrangement
B) Reasonable Cause: ● Must provide documentary proof of circumstances
IRS FTA Overview: https://www.irs.gov/payments/penalty-relief-due-to-first-time-penalty-abatement Reasonable Cause Standards: https://www.irs.gov/payments/penalty-relief
2. Gather Supporting Evidence Examples: ● Hospital or medical documentation ● Court orders or major personal events ● Insurance claims or disaster declarations ● Death certificates or care documentation ● Professional letters (if relying on tax advisor error) 3. Submit Your Request to the IRS Ways to file: ● Write a penalty abatement letter ● Call the IRS to request FTA (for single-year issues) ● File Form 843 (Claim for Refund & Request for Abatement): https://www.irs.gov/forms-pubs/about-form-843 ● IRS Mailing Addresses by Form: https://www.irs.gov/filing/where-to-file-paper-tax-returns-with-or-without-a-payment 4. Respond to IRS Follow-Up The IRS may request: ● Additional documents ● Clarifications ● Explanation timeline Keep copies of everything submitted!
Common Mistakes to Avoid
● Requesting abatement without justification or documentation ● Ignoring notices and allowing penalties/interest to compound ● Filing abatement before you are current with tax filings ● Misunderstanding the difference between IRS First-Time Abatement and Reasonable Cause criteria ● Using generic explanations that the IRS frequently denies (“I forgot,” “I was busy”)● Silence does not equal denial — IRS must issue a formal decision.
Documents & Information Needed
● IRS/state notice showing penalty charges ● Tax return(s) and payment history ● Timeline and explanation of the circumstances ● Supporting documents (medical records, insurance, police/fire reports, etc.) ● Prior filing and payment history ● Proof that you corrected the issue (filed overdue returns or paid owed taxes)
Let Victoria Handle It for You
Skip the paperwork, avoid mistakes, and let us prepare IRS or/and State Tax Penalty Abatement Requests. As a corporate compliance specialist, Victoria takes care of filings, compliance, and deadlines - so you can focus on growing your business.
Agency Founder, Victoria Duchovny