If you’ve received IRS penalties, we understand how frustrating and stressful the situation can be. Many New Yorkers find themselves facing unexpected penalties due to late payments, filing mistakes, or other tax issues. The good news? You may be able to reduce or even eliminate these penalties through a process called penalty abatement.
At Thorgood Law Firm, we’re here to help you understand your options and guide you through the process of penalty abatement. Our team is committed to helping you resolve your tax issues efficiently and effectively.
What Is an IRS Penalty Abatement in New York?
If you’ve been hit with IRS penalties, you may feel like there’s no way out. However, the IRS offers penalty abatement programs that could reduce or remove these charges for New Yorkers facing financial hardship. Penalties are typically issued for reasons like:
- Filing late – A Failure to File penalty can start at 5% of your unpaid taxes per month.
- Not paying on time – The Failure to Pay penalty starts at 0.5% of unpaid taxes, with the amount increasing if the IRS sends a final notice.
- Mistakes on your return – If the IRS finds errors in your reported income or deductions, you could face a 20% penalty for underreporting.
These penalties can add up quickly, creating a serious financial burden. The good news is, penalty abatement may help. However, approval is not guaranteed, and the process can be complicated. That’s where we come in. A New York tax lawyer can help you handle this process and increase your chances of success.
Can I Remove IRS Penalties on My Own in New York?
While it’s possible to request penalty abatement on your own, it’s often not as simple as it seems. The IRS has strict eligibility requirements and demands specific documentation. Even if you have a valid reason, the IRS might reject your request if it’s not presented properly.
We’ve seen many clients from New York struggle with the process, which is why many choose to work with a New York tax attorney. We can ensure your paperwork is complete and submitted correctly, giving you a much better chance of success.
Who Qualifies for an IRS Penalty Abatement in New York?
Not everyone qualifies for penalty relief, but if you meet certain criteria, you could have your penalties reduced or eliminated. The IRS offers a few different types of abatement:
1. First-Time Penalty Abatement
If you have a clean tax history in New York with no penalties in the past three years, you may be eligible for a one-time penalty waiver. This is often granted as a way to give taxpayers a second chance to resolve their tax issues without facing harsh penalties.
2. Reasonable Cause Relief
If your failure to file or pay taxes was due to a situation beyond your control, like a serious illness, a natural disaster, or relying on incorrect tax advice, the IRS may grant penalty relief. In these cases, the IRS recognizes that certain circumstances can interfere with a taxpayer’s ability to comply with their obligations.
3. Other IRS Waivers
In some situations, the IRS may automatically offer penalty relief for certain administrative errors or other issues on their part. This could include issues with processing or system errors that resulted in penalties being incorrectly applied.
Knowing which type of relief applies to your case is critical. A New York tax lawyer can help determine the best course of action and ensure you have the necessary evidence to support your request.
How Do I Apply for an IRS Penalty Abatement in New York?
The process of applying for penalty abatement can be a bit overwhelming, but we’ll guide you through it. To request penalty abatement, you’ll need to submit a formal request to the IRS, which involves:
- Filing Form 843 (Claim for Refund and Request for Abatement)
- Provide a clear explanation of why you believe the penalty should be removed
- Submitting supporting documentation, such as medical records, proof of financial hardship, or evidence of a strong tax compliance history
While it sounds straightforward, the IRS has very specific rules. One mistake on your form could cost you thousands in penalties. This is why working with an experienced New York tax attorney can make a huge difference. We’ll help ensure that your application is completed correctly and presented in the best possible light.
Do I Need a Tax Lawyer for Penalty Abatement in New York?
You don’t have to hire a lawyer to request penalty abatement, but it can really improve your chances of success. A New York tax lawyer can help ensure your forms are completed accurately and submitted on time, present a strong case for relief, and handle negotiations if your request is denied.
If you owe significant penalties or are dealing with multiple years of tax issues, a lawyer’s experience can make a big difference in securing the relief you need. It’s about reducing your stress and increasing your chances of getting the best possible outcome.
What If My IRS Penalty Abatement Request Is Denied in New York?
If your penalty abatement request is denied, don’t worry—you still have options. You can file an appeal within the IRS’s deadline and provide additional evidence to strengthen your case. Alternatively, you may be able to negotiate a lower payment or seek another form of resolution.
A New York tax lawyer can walk you through this process, ensuring you present the strongest possible case and increase your chances of getting a favorable outcome. Having an experienced professional by your side can make a huge difference in managing these next steps and improving your chances of success.
Need Relief from Tax Penalties? Get Help from a New York Tax Lawyer Today
At Thorgood Law Firm, we understand how overwhelming IRS penalties can feel. We’ve helped many New Yorkers reduce or eliminate their tax penalties, providing the relief they need to move forward with peace of mind. We’re here to help you too because we care about your financial well-being.
If you’re facing IRS penalties, don’t wait. The longer you delay, the more those penalties can grow. Let us take the stress off your shoulders so you can focus on what matters most—your family and your future.
Call a New York tax lawyer today for a free consultation at +212-490-0704, or contact us online. We’re here to help you every step of the way with the care you deserve.
