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IRS Representation & Resolution

IRS Penalty Abatement

Requests to remove failure-to-file, failure-to-pay and other IRS penalties through first-time abatement or reasonable cause.

Overview

How BATS handles irs penalty abatement

Penalties can add a large amount to a tax balance. The IRS removes them in many cases, through first-time abatement for taxpayers with a clean history or reasonable cause when circumstances outside your control got in the way. We build and submit the request.

We work with clients in all 50 states and Washington, D.C., so state-specific rules are covered whether you are in one state or several.

Who this is for

  • Taxpayers charged late-filing or late-payment penalties
  • Businesses with payroll deposit penalties
  • Partnerships and S corporations with late-filing penalties per owner
  • Anyone whose illness, disaster or hardship caused a late filing
What's included

Everything covered in this service

Penalty review on IRS account transcripts

First-time abatement requests

Reasonable-cause statements with documentation

Form 843 claims for refund of penalties paid

Appeals of denied requests

State penalty relief requests

Key forms and requests

The paperwork behind irs penalty abatement

Key forms and requests
First-time abatement requestOften handled by phone or letter
Reasonable-cause statementA written explanation with supporting documents
Form 843Claim for refund and request for abatement
Form 2210Requests a waiver of the estimated tax penalty in limited cases
Account transcriptsShows each penalty, its date and its amount

What we'll need from you

Have these ready and your first meeting goes much faster. Don't worry if something is missing; we'll help you find it.

  • The penalty notice
  • Evidence of what caused the delay, such as medical records, insurance claims or disaster declarations
  • Proof of when you filed and paid
Start with a consultation
The process

How it works, step by step

  1. Review penalties

    We identify every penalty charged and why.

  2. Find the basis

    We determine whether first-time abatement or reasonable cause applies.

  3. Request relief

    We submit the request by phone or in writing.

  4. Appeal if needed

    If denied, we take it to appeals.

Why BATS

Why clients choose BATS for irs penalty abatement

We speak to the IRS

With your authorisation, the IRS contacts us instead of you.

Transcript-first

We start from your IRS records so nothing is missed.

Honest options

We tell you which programs you actually qualify for.

Compliance going forward

We keep current filings on track so a resolution holds.

Questions

IRS Penalty Abatement FAQs

11 answers to the questions clients ask us most. Don't see yours? Ask us directly.

Ask a question

What is first-time abatement?

An administrative waiver for taxpayers who have a clean compliance history for the prior three years.

What counts as reasonable cause?

Circumstances such as serious illness, natural disaster or inability to obtain records, when you otherwise acted with ordinary care.

Can interest be removed?

Interest is generally reduced when the penalty it was charged on is removed.

Is relying on my tax preparer reasonable cause?

Sometimes. Relying on substantive professional advice can qualify, but courts have held that relying on someone else to file on time is generally not enough.

Can small partnerships get relief from late-filing penalties?

Yes. Small partnerships meeting certain conditions can request relief under long-standing IRS guidance, separate from first-time abatement.

Does first-time abatement apply to estimated tax penalties?

No. First-time abatement covers failure-to-file, failure-to-pay and failure-to-deposit penalties, but not the estimated tax penalty.

What about natural disasters?

The IRS automatically postpones deadlines for taxpayers in federally declared disaster areas. If you were charged a penalty anyway, we get it removed.

Can I get penalties refunded after paying them?

Yes. You can request abatement and a refund of penalties already paid, within the refund time limits.

Who will represent me before the IRS?

Representation before the IRS is limited by Treasury Circular 230 to CPAs, enrolled agents and attorneys. Your case is handled by a credentialed representative who signs Form 2848 with you.

Will hiring you stop IRS collection?

Not automatically. Collection usually pauses once a resolution request, such as an installment agreement or appeal, is properly filed. We move quickly to get that protection in place.

What does resolution cost?

It depends on the number of years and the complexity of the case. We review your IRS transcripts first, then give you a written quote.

Get help with irs penalty abatement

Book a consultation and get a clear plan for your taxes and books, wherever you are in the U.S.

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