Photo of Professionals at Bomar Law Firm

Guiding You Through The Legal Process

Photo of Professionals at Bomar Law Firm

Penalty waiver or reduction could offer tax relief

On Behalf of | Dec 21, 2020 | Tax Debt

Having problems with one’s taxes is never a comfortable position to be in. Many Atlanta residents may struggle to pay their outstanding tax balances and may only be accruing more penalties for not paying. If this is happening, some taxpayers may be able to find some tax relief by taking advantage of a penalty waiver or reduction if they qualify.

As the name suggests, a waiver or reduction of penalties could result in the IRS completely waiving penalties so that a taxpayer no longer has to pay the penalties or reducing the penalties to a lower amount. It is important to note that the IRS will not approve this option for everyone or for just any reason. As a result, individuals may want to look into whether their circumstances could allow them to request this assistance.

A waiver or reduction may be approved by the IRS under stipulations such as the following:

  • The taxpayer has reasonable cause for not filing or paying his or her taxes on time, such as having endured a natural disaster, an inability to gain necessary tax documents, or the death or serious illness of the taxpayer or an immediate family member.
  • The taxpayer is facing a first-time penalty or has not received a penalty in the last three years and is current on returns filed and any taxes owed.
  • The taxpayer took action on the advice of the IRS and incurred a penalty, which could give cause for administrative relief.

Because each Atlanta resident’s tax situation is different, the manner in which he or she could seek tax relief is also different. In some cases, waivers or reductions of penalties may prove helpful, and in others, taxpayers may need to explore other options. Fortunately, concerned parties could receive help from tax professionals if desired.