The Internal Revenue Service asserts penalties for filing returns late, for paying taxes late, for filing returns that are inaccurate, for fraud, and for a variety of other issues.

Penalties are almost all based upon deficiencies, that is, on amounts being owed to the IRS. If nothing is owed, there is no basis for the assertion of a penalty.  Penalties can be abated if there is “reasonable cause” for what the taxpayer has done or not done.  Reasonable cause is a very subjective standard.

Background facts need to be carefully examined to determine if there is a good excuse for what the taxpayer did or did not do. With proper facts we can explain and document the circumstance to the IRS in a way that will encourage IRS to not assert or to abate the penalties.