When an individual taxpayer or business fails to file a tax return or multiple tax returns on time, these compliance failures can lead to significant penalties and interest, even though there could be a good reason for the failure. The IRS will abate penalties for reasonable cause. However, that is a standard that is difficult to meet.
Recently, Warner helped a taxpayer who had been assessed penalties of approximately $500,000 for late filing. We submitted a detailed penalty abatement request on behalf of the taxpayer detailing the circumstances for the compliance failure and provided detailed legal arguments as to why the taxpayer should be granted a full abatement.
After some communication, the IRS granted the full abatement. This was a tremendous outcome for the taxpayer.