Penalty Abatement


If you’re a taxpayer with accumulated penalties and fees, then we can help you eliminate those charges with penalty abatement.

If you haven’t paid your taxes or filed your tax returns in years, you may have accrued significant penalties and interest in addition to your original tax debt. Alleviate Tax can often get these costly penalties and interest charges removed through a process called penalty abatement.

If this is your first time dealing with tax debts that have resulted in fees, interest, and penalties, the First Time Penalty Abatement Waiver is a form of tax relief the IRS offers to certain qualifying taxpayers who’ve incurred penalties for failing to file, failing to pay, or failing to deposit. This is a good-will policy designed by the IRS to reward a good compliance history, as well as deter taxpayers from making the same mistakes again.

Both individual taxpayers and businesses are eligible to request a First Time Penalty Abatement (FTPA) Waiver, which is when the IRS waives penalties incurred from failure to file, failure to pay, or failure to deposit. However, the FTPA waiver doesn’t apply to fines resulting from things like accuracy penalties, event-based requirements, and reporting that depends on other filings.

It’s also important to note that the FTPA only applies to a single tax filing year or period. If more years apply, the earliest of the years is the only one that will be considered for relief. All remaining years that have incurred penalties and fees must then be addressed with other relief methods, such as using criteria to meet reasonable cause guidelines.

Alleviate Tax can help you navigate the penalty abatement qualification process, helping alleviate your tax debt, potentially saving you tens of thousands in penalties, interest, and fees tacked on by the IRS. We handle the complicated IRS rules and tax relief calculations for you, ensuring you get the best possible results with the least amount of hassle.

15 minutes is all it takes to breathe easy knowing your tax penalty burden is in the hands of tax abatement experts.

Simply contact us using the form below, and one of our tax penalty abatement specialists will provide you a free consultation to determine if you qualify for a drastic reduction in tax penalties, fees, and interest charges.


There are numerous possibilities for reducing your tax liability if you’re unable to pay your entire tax bill. If you can make a strong enough case for your inability to pay your tax obligation in-full, the IRS will consider your income, assets, and future financial prospects to determine whether or not you are eligible for reductions in penalties, fees, and interest, and sometimes even the original tax liability. The IRS uses this information to calculate what repayment method is required–either an installment payment plan or a lump-sum payment–in return for drastic tax liability reductions.

Some options for reducing your tax liability might include:

  • Offer-in-Compromise
  • Penalty Abatement
  • Non-Collectible Status & Statute of Limitations Expiration

For Delinquent Tax Payment Plans
Payment plans for delinquent taxes come in short and long term arrangements. Approval for one of these plans will depend on your current financial situation and ability to repay. A long-term arrangement will set up payments over 120 days or more. You must owe a combined amount (taxes, penalties, and interest) of $50,000 or less to qualify for this option. For a short-term payment plan, payments are set up over 120 days or less. To qualify, you can owe a combined amount of up to $100,000.

For Tax Penalty Relief
For a delinquent taxpayer to qualify for tax penalty relief, they must meet the following requirements:

  • Filed all their currently required tax returns
  • Arranged to pay or paid any tax due
  • Didn’t previously have to file a return or didn’t have any penalties for the 3 tax years prior to a penalty being assessed

For Offer-in-Compromise Tax Relief
When the IRS reviews your application for an offer in compromise, they will determine whether or not you qualify by considering factors such as:

  • Your income
  • Your expenses
  • Your assets
  • Your ability to pay

If you are unable to pay your tax bill, the good news is the IRS is usually willing to work with you as long as you can prove your financial inability to pay the amount in-full. After all, they’d rather get something versus nothing, and the best way for that to happen is if they find common ground that’s financially feasible for you.If the IRS is threatening to levy and seize your assets, Alleviate Tax may be able to stop the process by negotiating to get an installment plan approved and get you back in compliance with the IRS.Some taxpayers exhibit incredibly dire circumstances that may make it impossible to pay off their tax debt entirely. In these situations, Alleviate Tax can help determine the maximum relief available, which sometimes includes settling for a fraction of the demanded amount.

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