Abatement of Tax Penalties

Our tax controversy lawyers have been extremely successful in the avoidance, abatement or elimination of tax penalties. There are more than 130 provisions regarding the imposition of civil tax penalties set forth within the Internal Revenue Code.  In most examinations resulting in a deficiency, the government examiner is required to consider penalties – both as to the taxpayer and as to the return preparer.

The ability to obtain relief from penalties generally falls into four separate categories – reasonable cause establishes that the taxpayer exercised ordinary business care and prudence, “first time abate” and similar statutory exceptions, administrative waivers and the correction of an IRS error. Further, the IRS Office of Appeals may recommend the abatement or non-assertion of a penalty based on “hazards of litigation.”

If you are potentially facing the imposition of civil tax penalties by any taxing authority, we can help.