Tax Penalty Abatement: How to Get Rid of IRS Penalties in Omaha

Facing IRS penalties can be a financial and emotional burden. If you’re dealing with late filing, late payment, or other tax-related penalties, it’s crucial to know that the IRS offers relief programs that may help you reduce or eliminate those penalties. This process is called penalty abatement.

In this blog, we’ll walk you through what tax penalty abatement is, who qualifies for it, and how you can take action to get rid of those costly IRS penalties in Omaha.

What Is Tax Penalty Abatement?

Tax penalty abatement is a form of relief provided by the IRS to taxpayers who have been charged penalties for failing to meet tax obligations. These penalties typically arise from:

• Late filing of tax returns.
• Late payment of taxes owed.
• Failure to deposit the correct amount of taxes.

If you can demonstrate a reasonable cause for your failure to meet these obligations, you may be eligible to have the penalties reduced or completely removed.

Common Reasons for IRS Penalties

Taxpayers in Omaha may face IRS penalties for a variety of reasons. The most common causes include:

• Filing taxes after the deadline without an extension.
• Failing to pay taxes owed by the due date.
• Not reporting all income, such as freelance work or investment earnings.
• Incorrect filings that lead to underpayment or discrepancies.

When these situations arise, penalties and interest can start to add up quickly, turning a manageable tax bill into a much larger financial burden. That’s where penalty abatement comes into play.

Who Qualifies for Penalty Abatement?

The IRS may grant penalty abatement for several reasons, but the most common is demonstrating “reasonable cause.” This means you had a valid reason for not meeting your tax obligations. Common examples of reasonable cause include:

• Serious illness or medical emergencies.
• Natural disasters or other events beyond your control.
• Death of a family member.
• Relying on incorrect tax advice from a professional.

In addition, first-time penalty abatement is available to taxpayers who have no prior penalties for the past three years and who are otherwise in compliance with the IRS.

Steps to Request Penalty Abatement

If you believe you qualify for penalty abatement, here are the steps you need to take:

1. Review Your IRS Notice: Identify which penalties have been assessed and review the notice for any deadlines or instructions from the IRS.
2. Determine Eligibility: Work with a tax professional to assess whether you qualify for abatement due to reasonable cause or first-time abatement.
3. Submit a Written Request: You’ll need to submit Form 843, Claim for Refund and Request for Abatement, along with any supporting documentation, to explain your circumstances to the IRS.
4. Follow Up: After submitting your request, the IRS may take several weeks to process it. Be prepared to follow up and provide additional information if necessary.

How a Tax Professional Can Help

Navigating the process of penalty abatement can be complex, especially when dealing with the IRS. A tax resolution professional can help you:

• Evaluate your eligibility for abatement and identify the best course of action.
• Gather necessary documentation to support your claim for reasonable cause.
• Submit and follow up on your abatement request, ensuring the process moves smoothly.
• Negotiate with the IRS to reduce or eliminate penalties, helping you save money and avoid further complications.

The BPB Difference

When it comes to resolving tax issues in Omaha, Ben Butterfield with BPB Tax Resolutions is your local expert. With years of experience in tax resolution, Ben understands the unique challenges Omaha residents face and is dedicated to helping clients secure the best possible outcomes.

Ben offers personalized, compassionate service, ensuring that every client receives the attention and expertise they deserve. Whether you need help with penalty abatement, unfiled returns, or other IRS problems, Ben Butterfield can guide you through the process with ease.

Take Action Today

Don’t let IRS penalties continue to pile up. Contact Ben Butterfield today at (402) 779-7399 for a free consultation. Let him help you request penalty abatement and resolve your tax issues before they escalate. Take control of your tax situation and get the relief you deserve!