“If you’re struggling to pay the original amount of your tax bill, the additional penalties can become a real hardship.
Eventually, you’ll have to pay whatever amount is determined that you owe but taking every legal advantage to reduce that amount can be a smart move if you qualify for relief.”
- Alyssa Maloof Whatley
What Types Of Penalty Abatements are there?
The IRS offers two primary types of penalty abatements, one being First Time Abate Relief (“FTA”). Under this type of abatement, the IRS waives your penalties for one year if you qualify.
This abatement is only available to taxpayers that meeting the following criteria:
Must have filed (or filed a valid extension for) all required returns and can’t have an outstanding request for a return from the IRS
Must have paid or arranged to pay all tax due (can be in an installment agreement if the payments are current)
Have no prior penalties (except a possible estimated tax penalty) for the preceding three years
First time abatement is a one-time deal and can only be used on one type of tax for one period.
“As a CPA, I have worked closely with Alyssa to help with my clients' complicated tax issues. She is very honest, detailed, and responsive and will hold a client's hand until the issue is resolved and provide honest and clear advice along the way. I've seen her greatly reduce client's tax liabilities.”
“From the moment I started working with Alyssa, my distress & blood pressure decreased and my confidence increased that all of this would be okay! Super smart, very knowledgeable, and just delightful to work with. I'm so relieved and encouraged!”
“Alyssa and her team were fast, to the point and so professional with handling an issue I had with the IRS! She promised that the situation would be handled and in just a few short weeks she delivered on that promise. Thank you so much!”
“I find this attorney to be very honest and willing to assist her clients by guiding them in the right direction. I would recommend her to anyone that has a question on matters of her expertise. She is very knowledgeable and a pleasure to work with.”
“Alyssa is an amazing attorney! She is knowledgeable, efficient, and effective! Also, she is quick to respond, extremely pleasant, and very reassuring. We are so grateful for her expertise and help! Highly recommend!”
“Alyssa has helped me and my parents with an overwhelming tax issue. Something we never thought could be done. She's so kind, patient, thorough and knows tax law. I'd recommend her 100% to anyone when it comes to dealing with the IRS.”
“When I first spoke to Alyssa I was facing an IRS Audit for two years at the same time and felt extremely overwhelmed. Alyssa outlined a solid approach and was very easy to talk to and understand. My tax liabilities were brought down by 50%.”
“I was reluctant to reach out due to all the previous calls to other offices who where going to charge me more than what I owed on my taxes. I spoke with the Alyssa, she was very nice and it did not feel like a sales call. She helped me understand the type of letter I received and patient assisting me.”
“If you need legal assistance with your taxes, I strongly recommend Alyssa. Receiving a large tax notice from the IRS was very scary. Alyssa’s calm and level-headed demeanor helped ease my concerns. She responded quickly to my questions and knew just what to do.”
Pro Tip:
Few abatements are granted
The IRS has a tendency to deny the penalty abatement request from the start and it oftentimes has to be appealed in order to be accepted.
Fires, natural disaster, or civil disturbances
Inability to get records
Death, serious illness, or unavoidable absence
Mistake was made (must be very fact specific)
Erroneous advice or reliance
