Penalty Abatement

Penalty Abatement refers to the cancellation or reduction of penalties imposed by the IRS or other tax authorities due to a taxpayer’s failure to comply with tax obligations.

It is often sought when a taxpayer can demonstrate reasonable cause for their noncompliance, such as illness, natural disasters, or other extenuating circumstances. For example, if a taxpayer misses a deadline due to a medical emergency, they may apply for penalty abatement to avoid or lessen the financial impact of late filing or payment penalties.