Washington, DC tax counsel · Nationwide IRS representation

Washington, DC IRS penalty relief.

The firm has an office at 1629 K Street NW, Suite 300 in Washington, DC and represents individuals and closely held businesses in IRS penalty disputes nationwide.

Each matter begins with the penalty notice, the years named, and the facts that support a request for relief.

Start with the penalty the IRS assessed.

The IRS publishes penalty relief, including relief for reasonable cause and an administrative first-time abate waiver for certain failure-to-file, failure-to-pay, and failure-to-deposit penalties when the published criteria are met. Eligibility depends on the penalty type, the filing and payment history, and the facts.

A penalty dispute is not an offer in compromise. It is not a payment plan. The request has to match the penalty the notice actually assessed. This page does not determine whether relief will be granted.

Official source: IRS Penalty relief
Official source: Failure to file penalty
Official source: Failure to pay penalty

The work

How the firm approaches IRS penalty relief.

  1. Read the penalty notice

    Identify the penalty type, the tax years, the amount, and the letter that assessed or proposed it.

  2. Match the penalty to the facts

    Failure to file, failure to pay, accuracy-related, and information-return penalties rest on different statutes and different records.

  3. Identify the relief path

    The IRS publishes penalty relief for reasonable cause and an administrative first-time abate waiver for certain penalties when the published criteria are met.

  4. Prepare the request

    State the penalty, the years, the facts that support relief, and the documents the IRS currently requires. This page does not determine whether relief is available.

Reasonable cause and first-time abate.

Reasonable cause relief depends on the facts and circumstances the IRS considers for that penalty. First-time abate is an administrative waiver the IRS describes for certain penalties when the taxpayer’s prior compliance meets the published test. The current IRS penalty-relief page controls which penalties and which years qualify.

If the penalty arose in an examination, start with IRS audit defense. If the penalty sits on an unpaid balance, read IRS collections. A proposed trust fund recovery penalty on Letter 1153 has its own protest path through IRS Appeals.

Questions

Common questions.

  • What IRS penalty relief does this page cover?

    The IRS publishes penalty relief, including relief for reasonable cause and an administrative first-time abate waiver for certain failure-to-file, failure-to-pay, and failure-to-deposit penalties when the published criteria are met. Law Office of Alexander Powell, PLLC has an office at 1629 K Street NW, Suite 300 in Washington, DC and represents individuals and closely held businesses in IRS penalty disputes nationwide. This page does not determine whether relief will be granted.

  • What is first-time abate?

    First-time abate is an administrative waiver the IRS describes for certain penalties when the taxpayer’s prior compliance meets the published test. The current IRS penalty-relief page controls which penalties and which years qualify. Eligibility depends on the penalty type, the filing and payment history, and the facts.

  • Is penalty relief the same as an offer in compromise?

    A penalty dispute is not an offer in compromise. It is not a payment plan. The request has to match the penalty the notice actually assessed. An offer in compromise is a collection alternative described on a separate page.

  • What facts control a reasonable cause request?

    Reasonable cause relief depends on the facts and circumstances the IRS considers for that penalty. Failure to file, failure to pay, accuracy-related, and information-return penalties rest on different statutes and different records. State the penalty, the years, the facts that support relief, and the documents the IRS currently requires.

  • What if the penalty arose in an IRS examination?

    If the penalty arose in an examination, start with IRS audit defense. If the penalty sits on an unpaid balance, read IRS collections. A proposed trust fund recovery penalty on Letter 1153 has its own protest path through IRS Appeals.

What may follow a penalty request.

The IRS may abate the penalty in full, abate it in part, or deny the request. The letter that follows states any remaining balance and any further review that letter offers. Read that letter. Use the IRS Letter Check for a supported notice code.

A simple first step

Start with what you know.

Tell me which penalty the IRS assessed and the tax years named. Send only a high-level summary. Documents can be reviewed later, if needed.

Start here