Abatement of Penalties Service | How to Reduce Tax Penalties

When the IRS believes you’ve made a mistake with your income taxes or it discovers you haven’t filed your taxes at all, it will assess a penalty and interest charges. If you’ve received a notice indicating that you owe a penalty, do not ignore it. Ignoring tax notices can result in wage garnishment, asset seizure and other extremely undesirable consequences.

How Much Tax Debt Do You Have?If the IRS or another tax authority has assessed a penalty for nonpayment or underpayment of taxes, call BC Tax. We help clients across Denver, the state of Colorado and the U.S. with IRS penalties and tax abatement of penalties. We can negotiate with the IRS on your behalf and request a tax penalty abatement.

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First-Time IRS Penalty Abatement

The IRS or other tax authorities can assess a penalty for a variety of reasons. These reasons include failing to file, failing to file on time without an extension and failing to pay income taxes on time. The good news is that the First Time Penalty Abatement policy can help you avoid paying this fee.

Here’s how first-time penalty abatement works. With every day that passes without you paying your penalty, the IRS will increase its amount until you pay your bill in full. But if you meet certain qualifications — such as making a payment arrangement — or you haven’t owed a penalty in the prior three years, the IRS may waive your penalty.

If you’re unsure whether or not your penalty qualifies for abatement, keep in mind that you may qualify based on Reasonable Cause.

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What Is Reasonable Cause for Penalty Abatement?

If you don’t qualify for the First Time Penalty Abatement program, you may get penalty relief in other ways, such as Reasonable Cause. If you have a valid reason for failing to file a return or make a tax deposit, the IRS will waive the penalty.

Common situations that qualify for Reasonable Cause include death, serious illness, natural disaster, fire and the inability to obtain necessary documentation. The IRS may also accept other reasons not listed here that prove you acted responsibly and were unable to file or pay for reasons beyond your control.

The IRS will look for proof that you were unable to meet your tax filing or payment obligations. They’ll want to know what happened and where, how events affected your ability to meet other daily responsibilities and how you handled your affairs once you realized you couldn’t meet your obligations. You should expect to provide documentation such as court records or a letter from a physician confirming incapacitation.

Reaching out to BC Tax as soon as you have a problem will help you minimize or eliminate penalties and associated interest.

Will the IRS Abate Interest Charges?

Yes and no. The IRS will not abate interest charges on your unpaid back tax balance, but it may reduce or eliminate interest associated with the penalty. It’s important to remember that the IRS will continue to accrue interest until your tax bill is paid in full.

Turn to BC Tax for IRS Underpayment Help in Colorado and Beyond

Do you need tax abatement help? Need to reduce your penalties? BC Tax has helped individuals and businesses in Denver, Colorado and across the country win IRS tax penalty abatement from federal and state tax authorities. If you’ve received a notice from the IRS or your state tax authority, don’t ignore it — call us instead. We’re ready to serve you.

“One of the biggest reasons I started looking for tax resolutions is because I thought I was paying way more than I should in past taxes. I spoke with one of the staff members at BC Tax, and he said that they could look over all of my documents and tell me what my options were. When I finally decided to let them do that, they were able to significantly reduce my debt, get rid of my penalties, and set up a payment plan I could keep up with. This is now definitely a step in the right direction.”

– C.F. , Texas

Get in touch with us by calling (800) 548-4639 or by filling out our online form.

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Enrique Marquez Perez

21:03 21 Feb 25

I cannot express enough how grateful I am for Dan Roby and the entire team at BC Tax. I found myself in a very stressful and unusual tax situation, owing over $50,000, and I had no funds to cover it. Despite this, Dan went above and beyond to help guide me through the process. He made sure I understood every step of the way, ensuring that I didn’t get taken advantage of by the IRS or other tax collectors. His expertise, patience, and dedication were truly a blessing during such a challenging time. Thanks to Dan, I feel confident and relieved, knowing I’m in good hands. Highly recommend BC Tax!

Renee Covington

18:41 21 Feb 25

My experience with BC tax has been easy. They have been very supportive and always answering my questions. My agent Amanda has been very attentive with my case and her customer service is beyond amazing. I highly recommend this company for any tax situation u might be in. Don’t let your IRS tax situation scare you there is help out there and BC tax is it!!! Thanks a million.

Jennifer Creech

20:54 02 Dec 24

I’ve never felt like a lawyer could b a good person. Untill I met Dan!! Not only did he comfort my worries, but he was 100% straightforward and honest about everything. It was so refreshing to have a lawyer who truly cares about your situation your family and your results. I would recommend him over and over and over again thanks Dan!

How To Reduce Tax Penalties

First-Time IRS Penalty Abatement

What Is Reasonable Cause for Penalty Abatement?

Will the IRS Abate Interest Charges?

Turn to BC Tax for IRS Underpayment Help in Colorado and Beyond

Get Help Today

See What Others Are Saying About BC Tax

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