Tax Penalties May Be Reduced or Eliminated Under Certain Situations

Dealing with tax penalties imposed by the Internal Revenue Service (IRS) is not one of life’s pleasantries. Unfortunately, these penalties can accrue for a large number of reasons. You may find yourself facing a penalty as a result of failing to file your personal income or business payroll taxes, filing late, failing to pay estimated taxes, failing to pay taxes that are owed, or any other action that involves a failure to uphold your obligations as a taxpayer in this country. It is possible, however, that you may qualify for a tax penalty abatement.

Six Situations That May Qualify You for a Penalty Abatement

Naturally, learning that your penalties may be reduced or eliminated is an appealing prospect. Following are six situations where the IRS is apt to approve a penalty abatement:

  1. Errors attributable to written advice given by an officer or an employee of the IRS while working in his official capacity.
  2. Penalties that resulted from your reliance on erroneous oral advice from the IRS.
  3. Errors resulting from your reliance on advice given by a tax advisor. For example, if the accountant that you regularly meet with in Tulsa advises you that you do not have to pay a certain tax, and the IRS imposes a penalty as a result, it is possible that the penalty could be abated.
  4. Penalties that accrued due to a fire, casualty, or natural disaster.
  5. If you live in an area that has been declared a disaster area, the IRS may grant relief of tax penalties to a large group of taxpayers.
  6. Penalties resulting from errors made by the IRS when computing or assessing the tax that you owe.


Attempting to obtain abatement is not necessarily easy when you do not have previous experience working with the IRS. To have the best shot at getting rid of this costly expense, it is best to seek guidance from a knowledgeable professional. We strongly encourage you to start this process by learning more about dealing with tax issues. For more information about the many possibilities for solutions to your IRS tax problem, view our free guide, The Ultimate Survival Guide for IRS Problems.