Frequently Asked Questions

Our Penalty Removal Service is designate to help you remove penalties received from the IRS due to late filing or non-filing tax returns / form 5472 of previous years.

The IRS has a special program in place to request relief for penalties. This program is open for anyone who can show a "Reasonable Cause" (a good excuse why you didn't file on time) or if it is your first time not filing on time.

There would be many reasons, or excuses permitted by law that the IRS would forgive the penalties. The IRS calls these excuses “ Reasonable Cause”.

Reasonable Cause for IRS penalty forgiveness may include any the following reasons:

• Medical Hardship

• Financial Hardship

• Death of a family member

• The mistake was made on the calculation of the taxes

• Error on behalf of a tax preparer or wrong advice from a tax preparer

• Wrong advice in writing provided by the IRS

• **COVID 19 Related hardship (including local law enforcement)

If none of the above reasonable causes applies, there is still hope. The IRS has a the first time abatement program known as the “ First Time Penalty Abatement”

The IRS will waive or remove (abate) certain penalties if you have a history of following the rules. This penalty relief is called first-time penalty abatement (FTA).

To qualify for the First Time Penalty abatement program you must have a clean three-year penalty history. To qualify for FTA, you can’t have any penalties of a “significant” amount in the past three years on the same type of tax return.

To make sure you can apply, we will ask you the following facts on your penalties:

• Penalty type(s)

• Amounts owed

• Year(s) involved

• Causes

Based on your facts and situation, we will identify which penalty relief options you can use and confirm you can start the process.

We will preapre a formal request to remove your penalty based on the information you have provided and submit it to the IRS.

Initial IRS review of written penalty abatement requests are usually completed within 12 weeks of the request.

If the IRS will accept your request, they will remove the penalties on your account and send you a letter in two to three weeks (usually IRS letter 3503C).

if your penalty request is denied, you can appeal to the IRS. Informal appeals go to an IRS Service Center. Appeal requests to a Service Center Penalty Appeals Coordinator are generally scheduled 10 weeks after the request has been made. The average penalty appeal resolution time is 7.5 months.

Before you apply - please make sure you have the following information:

Penalty type(s)

Amounts owed

Year(s) involved

Causes

Then, use the application contact form to start the process (scroll up the page).