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Penalty Abatement

IRS Penalties Can Double Your Tax Debt. We Remove Them.

The IRS assesses over 150 different penalties — failure-to-file, failure-to-pay, accuracy-related, estimated tax, and more. Combined, they can exceed the original tax. First-Time Abate, reasonable cause, and statutory exceptions can eliminate them. We know every abatement path.

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Find out which penalties can be removed from your account.

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Penalty Abatement Strategies

First-Time Abate (FTA)

If you have a clean compliance history for the prior 3 years (no penalties, all returns filed, all extensions filed), the IRS will automatically remove failure-to-file, failure-to-pay, and failure-to-deposit penalties for the first tax period where they're assessed. This is the most commonly approved abatement — and many taxpayers don't know it exists.

Eligibility: Clean 3-year compliance history

Reasonable Cause

You had a legitimate reason for failing to comply: serious illness, death in immediate family, natural disaster, incorrect professional advice, IRS error, or inability to obtain records. Requires a written statement and supporting documentation. The IRS evaluates each case on its facts.

Eligibility: Documented extenuating circumstances

Statutory Exception

Specific Internal Revenue Code provisions mandate penalty removal in certain situations: reliance on written IRS advice (§ 6404(f)), mathematical error on return, military service deferral, or disaster-area designation. These are law-based, not discretion-based — if you qualify, the penalty must be removed.

Eligibility: Specific IRC provisions apply

Appeals & Penalty Appeal

If the IRS denies your abatement request, you can appeal through IRS Appeals or request a Collection Due Process hearing to challenge the penalties. Appeals officers have settlement authority and often resolve cases that were denied at the initial level.

Eligibility: After initial denial