Tax penalties can cause an already difficult tax balance to grow significantly. When penalties and interest continue to accumulate, taxpayers may feel as though they are falling further behind even while trying to resolve the original debt.

Prendamano Tax Resolution & State Tax Advisory helps individuals and businesses determine whether IRS penalty relief may be available and whether penalty abatement should be part of a broader tax-resolution strategy.

Based in Melville, we assist taxpayers throughout Long Island, including Huntington, Garden City, Mineola, Hicksville, Nassau County, Suffolk County, Queens, Brooklyn, and New York City.

Penalty abatement is not simply a matter of asking the IRS to remove charges. The reason a penalty was assessed, the taxpayer’s filing and payment history, the tax period involved, and the circumstances that caused the problem all need to be considered.

In certain situations, taxpayers may qualify for penalty relief based on reasonable cause. This may apply when circumstances beyond the taxpayer’s control prevented timely filing or payment despite reasonable efforts to comply.

Other taxpayers may qualify for administrative penalty relief based on their prior compliance history and the type of penalty involved.

A strong penalty-abatement request should clearly explain what happened and why the taxpayer was unable to meet the applicable filing or payment requirement. Supporting documentation may also be important depending on the circumstances.

If a request is denied, additional review or appeal options may sometimes be available.

Penalty relief should also be considered as part of the larger tax problem. Reducing penalties does not necessarily eliminate the underlying tax or remaining interest. Once the penalty issue is addressed, the remaining liability may still require an installment agreement, Offer in Compromise, or another resolution strategy.

At Prendamano Tax Resolution, we evaluate both sides of the issue: whether penalties may reasonably be challenged and how the remaining tax debt should be addressed.

If IRS penalties are adding significantly to what you owe, contact Prendamano Tax Resolution & State Tax Advisory in Melville to discuss whether penalty abatement may be available.