You Are Not The First. You Will Not Be The Last.
Penalty Abatement
Remove or reduce IRS penalties through first-time abatement or reasonable cause.
Talk To A Real Tax Attorney
One honest conversation. You'll hang up knowing exactly what the IRS can — and can't — do to you, and how we'll stop them.
Call (877) 829-5267Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court
The Truth About Penalty Abatement — And What To Do Right Now
IRS penalties can add 25% or more to your tax bill. But what most taxpayers don't realize is that penalties can often be removed — either through First-Time Abatement (FTA) or by demonstrating reasonable cause.
McCauley Law Offices has a proven track record of getting penalties reduced or eliminated entirely. We analyze your compliance history, identify qualifying grounds, and build persuasive arguments that the IRS accepts.
Understanding IRS Penalties
The IRS imposes different types of penalties depending on what went wrong. The most common penalties include:
- Failure-to-File Penalty (IRC § 6651(a)(1)): 5% of unpaid taxes per month, up to 25%. This is the most expensive penalty — it accrues quickly.
- Failure-to-Pay Penalty (IRC § 6651(a)(2)): 0.5% per month of unpaid taxes, up to 25%. Reduced to 0.25% during an installment agreement.
- Estimated Tax Penalty (IRC § 6654): Assessed when you don't pay enough tax throughout the year through withholding or estimated payments.
- Accuracy-Related Penalty (IRC § 6662): 20% of the underpayment due to negligence, disregard of rules, or substantial understatement.
How We Get Penalties Removed
First-Time Abatement (FTA)
The IRS's administrative waiver program removes failure-to-file and failure-to-pay penalties if you meet three conditions:
- You filed all required returns or filed valid extensions
- You have no penalties for the prior 3 tax years (minor estimated tax penalties are OK)
- You've paid or arranged to pay any tax due
FTA can be requested by phone, in writing, or through a formal abatement claim. We handle the entire process and ensure the request is positioned for approval.
Reasonable Cause Abatement
If you don't qualify for FTA, penalties can still be removed if you had reasonable cause for the failure. The IRS evaluates whether you exercised ordinary business care and prudence but were still unable to comply. Common reasonable cause arguments include:
- Serious illness or hospitalization — you or an immediate family member
- Death of a family member or close relative
- Natural disaster — fire, flood, hurricane affecting your records or ability to file
- Reliance on professional advice — your CPA or tax preparer gave you wrong guidance
- IRS errors — incorrect advice from IRS agents or delayed processing
- Unable to obtain records — records were stolen, destroyed, or held by a third party
Combining Penalty Abatement With Other Relief
Penalty abatement is often most powerful when combined with other resolution strategies. For example:
- We can get penalties abated before submitting an Offer in Compromise — reducing the total amount the IRS uses to evaluate your offer
- We pursue abatement alongside installment agreements — lowering the overall balance you need to repay
- For taxpayers in Currently Not Collectible status, reducing penalties means less interest accruing over time
People Just Like You Have Sat In This Exact Chair
They were terrified. They were ashamed. They thought they were the only one. Then they made one phone call — and everything changed.
First-Time Non-Filer with Clean History
A Cherry Hill professional failed to file for 3 years due to a family crisis. We filed all returns and secured full first-time penalty abatement, reducing his bill from $47,000 to $18,200 — a 61% reduction.
Business Owner Hit with Trust Fund Penalties
A Haddonfield business owner was assessed $75,000 in penalties on top of $120,000 in payroll taxes. We got $52,000 in penalties abated by demonstrating reasonable cause.
Reasonable Cause After Hurricane Damage
A Wilmington client lost records and had her preparer's office flooded during a federally declared storm. We documented the disaster impact, secured full reasonable-cause abatement of $19,400 in penalties, and aligned the relief with the IRS disaster-zone procedures.
That Letter In Your Hand? Here's What It Really Means.
The IRS writes notices in code on purpose. If any of these landed in your mailbox, penalty abatement is exactly how we fight back — and the clock is already ticking.
This is the IRS's first notice telling you that you owe taxes. It shows the amount due, including any penalties and interest.
Deadline: 21 days
A reminder that you have a balance due. This is a follow-up to the initial CP14 notice.
Deadline: 21 days
The IRS believes you didn't report all your income. They've received information (W-2s, 1099s) that doesn't match your return.
Deadline: 30 days
CP210 (and the related CP220) notifies a business that the IRS has adjusted its tax account — typically a math correction, a credit transfer, or a penalty assessment on a payroll or business return. The notice shows the adjusted balance and may demand additional tax, penalties, and interest.
Deadline: 30 days
The IRS has no record of your federal tax return for a prior year and is asking you to file it. CP59 is the IRS's first formal step toward filing a Substitute for Return (SFR) on your behalf — which almost always overstates what you owe.
Deadline: Respond promptly (typically 30 days)
CP2501 is the IRS's first letter telling you third-party income data (W-2s, 1099s, K-1s, 1099-NECs) doesn't match what you reported. It's the prelude to a CP2000 adjustment if you don't respond.
Deadline: 30 days
Every Day You Wait, The IRS Wins A Little More.
Penalties stack. Interest compounds. Legal options quietly disappear. One free call ends the spiral.
Exactly How We Take This Off Your Shoulders
The hardest step is the first one. Everything after that, we carry for you. No surprises. No runaround. No lectures.
- 1
Run the 3-year FTA eligibility check
We pull your transcripts and confirm FTA is available before drafting — many people qualify and don't know it.
- 2
Build the reasonable cause file (if needed)
Medical records, death certificates, FEMA letters, preparer correspondence — we assemble the proof the IRS examiner expects.
- 3
Draft the written abatement request
We submit Form 843 or a written request with the legal authority, factual narrative, and supporting exhibits — never a phone-only request when meaningful dollars are at stake.
- 4
Push through Appeals if denied
Most first-pass denials are reversible. We file a timely protest to IRS Appeals where the analysis is more nuanced and reasonable cause arguments fare significantly better.
- 5
Sweep the refund window
If penalties were already paid, we file Form 843 as a refund claim within the statute and follow through to issuance.
This Isn't Theory — It's What We Do Every Week
Penalty Abatement — First-Time Non-Filer
Cherry Hill professional who failed to file for 3 years. We filed all returns and secured full penalty abatement under first-time abatement rules.
Trusted by Thousands of Taxpayers
Real results from real clients
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
"After years of IRS letters and threats, Gregory and his team got my penalties completely removed. They were professional, responsive, and genuinely cared about my case."
Sandra L.
Cherry Hill, NJ
1 / 3
The Questions Keeping You Up At Night — Answered
Other Ways We Shut The IRS Down
Offer in Compromise
Settle your tax debt for less than what you owe through IRS settlement programs.
Installment Agreement
Set up manageable monthly payment plans to pay off your tax debt over time.
Currently Not Collectible
Prove financial hardship to temporarily halt IRS collection activity.
Innocent Spouse Relief
Relief from joint tax liability caused by your spouse's errors or fraud.
One Phone Call. Or Another Sleepless Night.
Stop Letting The IRS Own Your Mornings.
You already know what happens if you do nothing. Pick up the phone for a free, confidential conversation with a real tax attorney — 30+ years inside the IRS playbook — and finally start fighting back.
Call (877) 829-5267 NowPrimary Sources & Authority
We cite the underlying IRS publications and statutes so you can verify everything on this page.