IRS Penalty Abatement
Requests to remove failure-to-file, failure-to-pay and other IRS penalties through first-time abatement or reasonable cause.
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
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
The paperwork behind irs penalty abatement
| First-time abatement request | Often handled by phone or letter |
|---|---|
| Reasonable-cause statement | A written explanation with supporting documents |
| Form 843 | Claim for refund and request for abatement |
| Form 2210 | Requests a waiver of the estimated tax penalty in limited cases |
| Account transcripts | Shows 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
How it works, step by step
Review penalties
We identify every penalty charged and why.
Find the basis
We determine whether first-time abatement or reasonable cause applies.
Request relief
We submit the request by phone or in writing.
Appeal if needed
If denied, we take it to appeals.
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.
IRS Penalty Abatement FAQs
11 answers to the questions clients ask us most. Don't see yours? Ask us directly.
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.
Often paired with this service
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Learn moreIRS Representation & ResolutionBack Taxes & Unfiled Returns
Catch up on years of unfiled federal and state returns, reduce penalties and get back into good standing.
Learn moreIRS Penalty Abatement in every state
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, D.C.
- West Virginia
- Wisconsin
- Wyoming
Popular cities
- Birmingham, AL
- Anchorage, AK
- Phoenix, AZ
- Little Rock, AR
- Los Angeles, CA
- Denver, CO
- Bridgeport, CT
- Wilmington, DE
- Jacksonville, FL
- Atlanta, GA
- Honolulu, HI
- Boise, ID
- Chicago, IL
- Indianapolis, IN
- Des Moines, IA
- Wichita, KS
- Louisville, KY
- New Orleans, LA
- Portland, ME
- Baltimore, MD
- Boston, MA
- Detroit, MI
- Minneapolis, MN
- Jackson, MS
- Kansas City, MO
- Billings, MT
- Omaha, NE
- Las Vegas, NV
- Manchester, NH
- Newark, NJ
- Albuquerque, NM
- New York City, NY
- Charlotte, NC
- Fargo, ND
- Columbus, OH
- Oklahoma City, OK
- Portland, OR
- Philadelphia, PA
- Providence, RI
- Charleston, SC
- Sioux Falls, SD
- Nashville, TN
- Houston, TX
- Salt Lake City, UT
- Burlington, VT
- Virginia Beach, VA
- Seattle, WA
- Washington
- Charleston, WV
- Milwaukee, WI
- Cheyenne, WY
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.