Tax Penalty Abatement

Getting surprised by tax penalties can be both frustrating and nerve wracking. When you anticipate paying money to the IRS for taxes but learn the amount you owe is significantly more than you expected thanks to added penalties, you may feel helpless and at the mercy of the government. It might seem like you have no choice but to find a way to pay what the IRS claims you owe, even if you believe the penalties are not justified.

    Get help from a Chicago Tax Lawyer

    The tax penalty abatement team at Gordon Law Group understands IRS penalty rules and how to pursue IRS penalty forgiveness. If you have been notified that the IRS or the Illinois Department of Revenue assessed tax penalties, a Gordon Law Group tax attorney can help you overcome this hurdle.

    What Triggers IRS Tax Penalties?

    • If you did not file a tax return by the due date and did not request an extension of time to file, your tax transcript will likely include a “failure to file” penalty.
    • If you filed your returns on time but failed to pay your taxes in full by the due date, you will probably be assessed a “failure to pay” penalty.
    • If your business is required to make periodic payroll tax or other deposits but does not do so, you will be charged with penalties related to each such missed payment.
    • If you went through an audit, the examiner may assess an accuracy penalty on any understatement of tax.

    IRS Penalty Forgiveness May Be Available

    Often, people assume that if the IRS assesses a penalty, there is no choice other than paying it. The reality is, the IRS tax code includes provisions for penalty relief, otherwise known as “abatement.” Under certain circumstances, the IRS is willing to waive tax penalties.

    For example, you may be able to have your tax penalty waived or reduced under the IRS’ First Time Penalty abatement (FTP) policy.

    You may qualify for FTP relief if:

    • You have filed all currently required returns or requested extensions of time to file
    • You have paid (or have arranged to pay) any taxes owed
    • You have not had any tax penalties assessed for the 3 tax years leading to the year in which you received a tax penalty notice.

    Making an IRS Penalty Abatement Request

    Penalty abatement decisions are made on a case-by-case basis. To qualify for abatement relief, you must demonstrate that there is reasonable cause for the IRS to grant relief, or that abatement is otherwise justified under IRS rules and procedures.

    Working with a knowledgeable tax lawyer can improve your chances of securing an IRS penalty abatement. Gordon Law Group has a track record of successfully helping clients reduce or even eliminate assessed IRS tax penalties:

    • Gordon Law Group has helped clients qualify for and receive IRS abatement of substantial tax understatement penalty debt, failure to file, and failure to pay penalties.
    • Gordon Law Group focuses on tax issues, including penalty abatement, and our attorneys are extremely knowledgeable in this field.
    • We used the IRS penalty abatement process for one business client to reduce the client’s tax bill from more than $500,000 to ZERO!

    Choose Gordon Law Group to Help With Your IRS Abatement Letter Request

    Unfortunately, IRS tax penalties can take you by surprise, and they can add up quickly. The good news is, you may qualify for penalty abatement, which can provide much-needed relief. 

    Contact Gordon Law Group today to learn more and to schedule an initial consultation.

    Here are some common red flags that can trigger an audit and cause difficulty during the process:

    • You have a great deal of itemized deductions on your tax return — ones that are outside IRS audit parameters. We can insulate you from any potential liabilities.
    • You’re in a business that receives cash from normal business operations.
    • Your business expenses are high relative to your income.
    • You’re claiming any rental expenses on your tax return.
    • You have deficiencies in your taxes from a previous audit.
    • You have complex tax transactions on your return that lack adequate information.
    • You have deducted any losses from tax shelter investments on your return. This is a juicy tax audit subject, and we can help in the defense of your case.
    • You have deducted a complex set of business or investment expenses on your tax return. We have experience in transaction law and its associated effects.
    • Someone has given information to the IRS (such as an angry ex-spouse or business partner). We will contradict their statement where it’s necessary.

    As you can see, there are many circumstances that can potentially trigger an IRS audit. If you are the subject of an audit, you will receive a letter in the mail. Note that the IRS will not contact you to initiate an audit via telephone, text message, or email correspondence.

    You can relax once you hire us as your IRS audit lawyer to defend you. Gordon Law Group has the experience and proven history of success that you need, and we can help you come out with your money and assets intact.

    Give your Tax Audit Concerns to our Team of Lawyers

    Going through an IRS or Illinois audit on your own can be a scary thing. You don’t need to do it alone! Hire a tax attorney from to defend you.

    We have represented individuals and businesses in tax audits for years, and we want to help you as well!