Penalty Abatement

If you’ve been charged an IRS penalty and qualify for relief, we can help.

Struggling with IRS penalties? At Expert Accounting Services LLC (dba EAS Income Tax Services) we provide professional tax resolution services in Atlanta, GA, helping individuals and businesses reduce or eliminate penalties. IRS penalty abatement is a powerful option to ease the financial burden caused by penalties for late filing, late payment, or payroll deposit issues. With decades of experience, we are Atlanta’s trusted experts in IRS penalty relief and tax compliance.

Learn more about the different types of IRS penalty abatement, eligibility requirements, and how EAS can help you resolve your tax problems effectively.

What is IRS Penalty Abatement?

IRS penalty abatement allows taxpayers to request the reduction or removal of penalties assessed for tax-related non-compliance. These penalties can escalate quickly, creating financial stress. Whether you’re dealing with failure-to-file penalties, payroll tax issues, or other IRS concerns, penalty abatement provides relief. Let our Atlanta-based tax experts guide you through the process.

Types of IRS Penalty Relief

1. First-Time Penalty Abatement (FTA)

If you have a clean tax compliance history, you may qualify for FTA, which applies to:

• Failure to File Penalties: For late tax return submissions.
• Failure to Pay Penalties: For not paying owed taxes on time.
• Failure to Deposit Penalties: For payroll tax deposit delays.

Eligibility Requirements:

• No prior penalties of the same type in the last three years.
• All required tax returns must be filed.
• Taxes owed must be fully paid or included in an IRS-approved installment agreement.

2. Reasonable Cause Relief

Taxpayers in Atlanta and nationwide may qualify for reasonable cause relief if they failed to comply due to situations beyond their control, such as:

• Natural disasters.
• Illness or incapacitation.
• Family emergencies, such as a death in the family.
• Reliance on incorrect advice from a tax professional or the IRS.

Requirements:

• Provide documentation explaining your situation.
• Demonstrate efforts to resolve the issue promptly.

3. Statutory Exception

Relief may be granted when:

• The IRS made an error, such as issuing incorrect instructions.
• A specific tax law allows for penalty removal.

4. Administrative Relief

During federally declared emergencies, such as natural disasters in Georgia, the IRS may grant automatic relief by waiving penalties or extending deadlines.

Contact EAS for Penalty Relief in Atlanta or Nationwide

At EAS, we make IRS penalty abatement simple and stress-free. Here’s how we help:

1. Evaluate Your Case:
   At EAS Income Tax Services, we evaluate a penalty relief case by thoroughly reviewing the taxpayer’s situation to determine if they meet IRS criteria, such as reasonable cause, first-time penalty abatement, or statutory exceptions. We then gather supporting documentation and craft a compelling argument to maximize the chances of penalty relief.
2. Prepare the Documentation:
   We prepare penalty relief documentation by collecting detailed records, such as medical reports, financial statements, or other evidence supporting the taxpayer’s claim. We then organize and present the information in a clear, persuasive format tailored to IRS guidelines for penalty relief.
3. Submit the Request:
   At EAS, we submit penalty relief requests by preparing a formal written explanation detailing the taxpayer’s circumstances and attaching all supporting documentation. The request is then sent to the appropriate IRS office via mail, e-file, or fax, depending on the case requirements.
4. Follow Up:
   To ensure progress on penalty relief requests, we follow up by regularly contacting the IRS to check the status of the case. We document all communications and provide updates to the taxpayer until a resolution is reached.

Success Stories from Atlanta Clients

Scenario 1: First-Time Penalty Abatement

• Situation: John, an Atlanta small business owner, missed the deadline for his 2022 tax return and incurred a $500 penalty.
• Solution: With no prior penalties and full compliance Expert Accounting Services LLC successfully secured FTA, removing the penalty.

Scenario 2: Reasonable Cause Relief

• Situation: A Georgia-based business owner was late depositing payroll taxes due to a natural disaster.
• Solution: EAS prepared the necessary documents, including proof of the disaster declaration, and the IRS granted penalty relief.

Key Tips for IRS Penalty Abatement Success

1. Stay Compliant:
   File your tax returns on time and pay taxes promptly to avoid future penalties.
2. Keep Records:
   Maintain copies of your tax returns, payment receipts, and all correspondence with the IRS.
3. Consult Atlanta’s Tax Experts:
   Partner with EAS, Atlanta’s leading tax resolution professionals, to navigate the IRS penalty abatement process with confidence.

FAQs About IRS Penalty Abatement

1. Can I Request Penalty Abatement for Multiple Years?
   First-Time Penalty Abatement applies to one tax year. For penalties spanning multiple years, reasonable cause relief may be applicable.
2. Can I Get Penalty Abatement More Than Once?
   FTA can be requested again after a clean compliance period of three years.
3. Does Penalty Abatement Remove Interest?
   No, penalty abatement does not eliminate accrued interest, but it may stop additional interest from penalties once they are removed.

Penalty Abatement in the State of Georgia

Georgia does not have a specific “First Time Penalty Abatement” (FTA) program like the IRS. However, the Georgia Department of Revenue (GDOR) does allow taxpayers to request penalty waivers under certain circumstances, which may include a reasonable cause explanation or demonstrating compliance history.

Key Points on Georgia’s Penalty Abatement:

1. Reasonable Cause Penalty Waiver:
   • Taxpayers can request a penalty waiver if they have a valid reason, such as illness, natural disasters, or reliance on incorrect professional advice.
   • The waiver request should clearly explain why the penalties should be abated and include supporting documentation.
2. Good Compliance History:
   • Although Georgia does not advertise a formal “first-time” penalty abatement, a history of compliance with tax obligations may be a factor when the GDOR evaluates waiver requests.
3. Process for Requesting Penalty Abatement:
   • Taxpayers can request penalty waivers by filing Form GA-20004 (Penalty Waiver Request Form) or including a written request along with payment of the tax due.
   • The request should include details about the penalties assessed, the reasons for the waiver, and any supporting documentation.
4. How to Submit the Request:
   • Requests can be submitted through the Georgia Tax Center (GTC) online portal or by mailing the necessary documents to the GDOR.

Steps to Take:

• Check Compliance History: If you’ve generally been compliant, highlight this in your request.
• Gather Documentation: If the penalties were due to circumstances beyond your control, prepare any necessary proof, such as medical records or evidence of natural disasters.
• Submit Timely: Make sure to submit your request as soon as possible to avoid additional interest or penalties.

Why Choose Expert Accounting Services in Atlanta?

With over 20 years of experience, EAS is Atlanta’s trusted choice for IRS penalty abatement, tax resolution, and compliance. We specialize in helping individuals and businesses across Georgia resolve tax problems and regain financial peace.

Benefits of Choosing Us:

• Expertise in IRS communications and penalty abatement strategies.
• Customized solutions tailored to your specific tax situation.
• Local Atlanta-based service with national reach.

Get Help Today

Don’t let IRS penalties disrupt your financial future. Contact EAS, Atlanta’s premier tax resolution firm, for a free consultation. Whether it’s First-Time Penalty Abatement, reasonable cause relief, or any other tax issue, we’re here to help you succeed.

Call us now or visit our website to schedule your consultation and take the first step toward resolving your IRS penalties.