Palm Beach Penalty Abatement Attorney

Palm Beach Penalty Abatement Lawyer

Penalties assessed by the Internal Revenue Service (IRS) can be especially frustrating when the error or late payment was outside your control. If you had a reasonable cause for a penalty, or you have a good history of tax compliance, you could remove certain penalties from your tax liability. A Palm Beach penalty abatement attorney can help you navigate this process and prove your eligibility for abatement.

Hire a Penalty Abatement Attorney

TaxSmith, LLC can help you navigate your tax debt. The IRS is willing to negotiate with taxpayers, and penalty abatement is one of several options to lessen or settle the tax debt you owe. Our firm believes in an individualized and straightforward approach to managing your tax issues.

We help you create a strategy that fits your needs while ensuring compassionate and transparent legal support. Our attorneys have combined decades of tax code experience and experience with the IRS and its agents, as well as experience with the Taxpayer Assistance Center in West Palm Beach. We know that tax issues can be very frustrating and overwhelming, and we want to help you secure a resolution that benefits you.

The Basics of Penalty Abatement

The IRS has several methods it uses to determine taxpayer errors and find taxpayers who haven’t paid their taxes in full. Nationwide, the IRS assessed an additional $7.6 billion through its automated underreporter program. The IRS also sent over 1 million notices for math errors in 2024, for nearly 1.2 million errors in 2023 individual income tax returns.

In some cases, these and other errors can lead to penalties. If you haven’t paid your taxes, or were late, or made another mistake, you likely were assessed penalties by the IRS. These penalties, and any taxes you haven’t paid, will continue to accrue penalties and interest. Some of these penalties are only assessed once by the IRS, while others can accrue.

Penalty abatement occurs when the IRS forgives some or all of your penalties. The abatement could also clear the interest accrued by the penalty. This can greatly reduce the tax liability you owe the agency. There are two reasons for penalty abatement:

• First-time penalty abatement for those with a good compliance history
• Reasonable case penalty abatement for those whose errors were caused by circumstances outside of their control

If you have been assessed penalties by the IRS, you could clear some or all of those penalties through penalty abatement, and a skilled attorney can help you navigate this process.

What Penalties Are Eligible for Abatement in Palm Beach?

First-time or reasonable cause penalty abatement could be applied to specific penalties, including:

• Failure to file specific tax returns
• Failure to pay by the due date
• Accuracy-related penalties
• Failure to deposit the correct amount, in the required way, or in the required time
• Failure to file accurate and timely information returns or statements

The IRS assessed 22.4 million penalties for the failure to pay individual, estate, and trust income taxes, totaling over $7.8 billion in 2024. There were also 15.3 million penalties assessed for underpayment of estimated tax, totaling $4.8 billion.

What Are Reasonable Causes for Penalty Abatement?

Reasonable cause varies depending on the type of penalty you are requesting abatement for.

For example, failure to file or pay penalties may qualify for abatement when you were unable to comply with tax obligations despite using ordinary care and prudence to attempt to do so. Reasonable cause may include:

• Fire or other natural disasters
• Civil disturbance
• Being unable to get the records you need
• Death in your immediate family
• Serious illness or incapacitation of you or your immediate family
• Unavoidable absence of you or your immediate family, such as imprisonment or being in rehabilitation
• Issues in the online system that delayed a timely filing

Other penalties, like accuracy or information return penalties, may have reasonable cause, such as incompetent tax advisor advice. Depending on the type of reasonable cause penalty abatement, the forgiveness could apply to multiple tax years. The IRS assesses each case individually to determine if your situation qualifies for reasonable cause penalty abatement.

FAQs About Palm Beach Penalty Abatement Law

What Is a Good Reasonable Cause for Penalty Abatement?

To secure a penalty abatement, you often must have a good, reasonable cause for why the penalty occurred. Reasonable cause depends on your circumstances, and you must be able to prove it. For example, you may have been assessed a failure to pay penalty because you were incapacitated, lost a loved one, or were in prison, and were therefore unable to pay your taxes. Other penalties may have other reasonable causes.

How Do I Request My First Penalty Abatement?

To request a first-time penalty abatement, you have to file the proper form or contact the IRS. You must have a good history of tax compliance to qualify for a first-time penalty abatement. This includes having filed the required tax form for the prior three years and having had no penalties assessed except for those with reasonable cause. You don’t have to prove this information, as the IRS will review your compliance history when you request the abatement.

How Long Does a Penalty Abatement Take?

A penalty abatement may take a short period of time or may take longer to review, depending on the case. It can take longer to navigate a reasonable cause penalty abatement because the IRS must assess your documentation to determine if the cause applies and is reasonable. Your case will take longer if your request is denied, and you decide to appeal the decision. When you hire a penalty abatement attorney, they can help you avoid mistakes and provide documentation.

What Are the Most Common Penalties That Can Be Abated Under the First-Time Penalty Abatement Rule?

Under first-time penalty abatement, you can generally abate failure to file, failure to pay, and failure to deposit penalties. However, there are restrictions to these. Failure to file applies to tax returns, partnership returns, and S corporation returns. Failure to pay applies to taxes that are shown on a return and not paid by the due date, or were not shown on the return but were required to be.

Contact Palm Beach Penalty Abatement Attorney

If you were assessed penalties in Palm Beach, contact TaxSmith, LLC, and learn what options you may have. With our focus on tax cases, you know that you will have the knowledge and experience necessary for any situation that may arise. Our familiarity with the law, the process, and the complications you face will help you successfully navigate your case.