Penalty Abatement Help: How Service Works

Many tax professionals listed on TaxCure have worked many penalty abatement cases. Some are with various states while others are only with the IRS. More importantly, the service is intended for both businesses and individuals.

When you want penalty forgiveness, a tax professional looks at your situation and your supporting documentation. Based on their previous experiences with similar cases, they will let you know if your request is likely to get accepted. You can read more about the options the IRS provides.

How Do Penalty Abatement Services Typically Work?

Many tax professionals will provide a free consultation to see if your tax situation warrants the abatement of penalties. With the IRS, first-time penalty abatement is applied automatically on tax returns from tax year 2025 and on. However, if you don't qualify for automatic abatement, a tax professional can help you apply. Tax professionals may offer penalty abatement services in conjunction with helping you set up payments or deal with unfiled returns -- or they may offer penalty abatement as a standalone service if that's all you need help with. 

Here is a summary of how the process works:

• The tax pro will determine if you are a likely candidate to erase or abate tax penalties (all types of penalty relief options will be reviewed)
• A tax professional will file a Power of Attorney with the IRS. That stops the IRS from harassing you. Your licensed tax professionals will handle all IRS communications.
• If you are not a likely candidate, the pro will find you the next best solution for your situation -- for example, a settlement, hardship relief, or currently not collectible status.
• If you qualify to have penalties removed, penalty abatement lowers your overall tax liability and can make your monthly payments smaller.
• A tax pro prepares all the required documentation and deals with the IRS on your behalf.

You can find a list of tax professionals with penalty abatement experience by doing a search below and then using the search solution filters to filter by "penalty abatement." At TaxCure, we have developed a marketplace of tax professionals with a wide variety of backgrounds. Our system allows you to find the top professional to help with your situation and has experience helping other people with similar situations.