IRS penalties can significantly increase the amount you owe. In many cases, the penalties grow faster than the original tax debt, creating even more financial strain.
Most taxpayers who fall behind are not attempting to avoid their obligations. Financial hardship, illness, business downturns, divorce, or other unexpected events often contribute to late filings or missed payments. Despite this, the IRS automatically imposes penalties that can add thousands of dollars to a balance.
Penalty Abatement may allow those penalties to be reduced or removed.
Penalty Abatement is a formal request asking the IRS to remove or reduce penalties assessed on your account. If approved, this can significantly lower your total tax liability.
Common penalties eligible for relief include:
Interest tied to removed penalties may also be reduced.
The IRS may grant penalty relief if you can demonstrate reasonable cause. This generally means showing that circumstances beyond your control prevented compliance.
Examples may include:
In some cases, First-Time Penalty Abatement may be available if you have a clean compliance history.
Each request must be carefully prepared and supported with documentation.
Penalty relief requests are subject to deadlines. Delaying action can limit your ability to appeal or recover penalties already paid.
Once penalties are assessed, they continue to accrue interest. Acting quickly can prevent further escalation.
The IRS evaluates penalty abatement claims closely. A vague or unsupported explanation may lead to denial.
A properly structured request includes:
With over 10 years of experience and more than 450 clients assisted, our firm helps Dallas taxpayers prepare well-documented penalty abatement requests designed to meet IRS standards.
Penalties can dramatically inflate your tax debt, but you may not have to pay them.
If you have been assessed IRS penalties, call (469) 626-7760 today to schedule a confidential consultation with Margolies Law Office and determine whether you qualify for penalty relief.
“ Andrew Margolies did a great job for my mom who had paid her taxes, but the IRS failed to associate the payment with her account. She kept getting letters demanding payment with accrued interest and fees even though they had cashed her check.
After Andrew started working on it, the letters stopped. We were notified there had been a credit to my mom’s account, and finally the payment was properly applied with a zero balance. She is even receiving a refund.
We’re very happy with Andrew and would highly recommend him.”
“I came to Andrew Margolies with a significant IRS issue that I had been losing sleep over for months. I spoke with Jennifer on the phone, got in the same day for a consultation, and had a full resolution within 2 business days for a reasonable price. Andrew did exactly what he said he was going to do and provided me with a thorough resolution.
Being 9 months pregnant, Andrew was extremely sensitive to my timeline urgency and was on the phone with me at 5pm on a Friday helping me with my case.
Before meeting with Andrew, I called around to 10 different offices. All of those interactions felt like a sales funnel and a money grab. I can’t explain the relief I have having chosen to work with Andrew and having a resolution within days. We’re absolutely thrilled with the value and the experience.”
“100% recommended. I had a problem regarding my tax return since the beginning of 2023 and had been trying to follow up myself until 2025 with no progress. I decided to work with Attorney Andrew and Jennifer and in less than a month my problem was solved.
Attorney Andrew is very knowledgeable with reasonable fees and Jennifer is very responsive to all requests and questions. Most importantly they have business ethics. I will not look further if I have any more tax problems.”
