5 IRS Penalty Abatement Strategies | Oberheiden P.C. - JDSupra

3 days ago · With this in mind, Dr. Nick Oberheiden, founding partner of the national law firm Oberheiden P.C. and a leading tax attorney at the firm, summarizes five IRS penalty abatement strategies that may ...

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IRS Penalties, Abatements, And Other Relief - The Tax Adviser

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Jul 1, 2024 · The taxpayer made $75,000 in estimated tax payments throughout the year and paid the remaining $25,000 of tax due 15 days late. The IRS can assess $1,250 (5% of $25,000 …

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FAQs about 5 IRS Penalty Abatement Strategies | Oberheiden P.C. - JDSupra Coupon?

What are some tax penalty abatement tips?

Here are penalty abatement tips for the estimated tax penalty: It is fairly common for the IRS to credit a payment to the wrong tax period, causing an estimated tax penalty. Simply getting the IRS to move a payment to the correct year/period can save a client from paying this penalty. ...

What is IRS penalty abatement?

Fortunately, the IRS offers penalty abatement programs that provide relief to eligible taxpayers who have incurred penalties for the first time or can demonstrate reasonable cause for their non-compliance. However, successfully requesting IRS penalty abatement requires careful attention to detail and adherence to certain guidelines. ...

What is penalty abatement for reasonable cause?

In simple terms, penalty abatement for reasonable cause is when the IRS gives you a break and agrees to remove penalties from your account. This could apply to almost any kind of penalty they’ve slapped on you. Think of it as the IRS saying, “Okay, we’ll let this one slide.” ...

What are your go-to penalty abatement defenses?

Though corrections of errors and statutory/regulatory exceptions are certainly viable options in certain circumstances, practitioners are likely finding their go-to penalty abatement defenses are either the first-time penalty abatement waiver (an administrative waiver) or reasonable cause. ...

How do I get a penalty abatement?

Do Gather Documentation: Gather any documentation or evidence that supports your request for penalty abatement. This may include financial records, medical documents, or correspondence with the IRS. Providing thorough documentation can strengthen your case and increase the likelihood of obtaining relief. ...

What are the different types of penalty relief under the IRM?

Penalty relief under the IRM generally falls into four categories: Correction of IRS error: Many IRS penalties are assessed on an automatic basis (i.e., a failure-to-file penalty is assessed automatically if the return is recorded as late in the IRS system). ...