Posted by: Garcia & Cuadra, PA | October 28, 2015

What You Need to Know About Tax Penalty Abatement

Tax Penalty AbatementMany people in Tampa receive penalties from the IRS; however few file for tax penalty abatement, since many are unaware that they qualify to receive a reduction or dismissal of the fines.  Talking with a personal tax adviser can help you figure out if you qualify for abatement and what steps to take to strengthen your case to the IRS.

Causes for Abatement

There are a variety of ways to qualify in the Tampa area:

  1. First-Time Tax Penalty Abatement Rule – You may qualify for this rule if you are filing your first tax return or have never had an IRS penalty previously. The First-Time Abate reduction is an Administrative Waiver and must be requested in writing.
  2. Reasonable cause – This has the largest variety of reasons to reduce a penalty, including:
    • Death, serious illness, or unavoidable absence
    • Undue hardship
    • Doing everything you could to meet reasonable business obligations, yet were still unable to meet legal standards
    • Fire, casualty, natural disaster, or being in an official disaster area in Tampa
    • Not being able to obtain financial records
    • Written or oral advice from the IRS or a tax professional
    • Claiming that you had made a filing mistake
    • Being ignorant of the law
    • Forgetfulness or taxpayer oversight
  3. Correction of IRS error – Even the government makes mistakes. If you can prove that they made an error, you can be eligible for tax penalty abatement for your statement.
  4. Statutory exceptions – You may be able to claim abatement through legislation that the IRS previously passed.
  5. Administrative waivers – This is provided by the IRS if they have a delay in printing or mailing forms, publishing their guideline, and other such conditions.

The Garcia and Cuadra Advantage

If you have any questions about qualifying for tax penalty abatement in Tampa, contact Garcia and Cuadra today.  They have over 35 years of tax service experience and can guide you down the proper path when it comes to dealing with the IRS.  To start working with them, they can be reached at 813-415-2431.  They’ll do everything they can to keep the money in your wallet and bank accounts.  Make Garcia and Cuadra a part of your financial team today.


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