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If you were unable to meet your IRS tax obligations, you may have learned that you were penalized for not complying with the law. While most penalties are in the form of a fee or fine, there is a chance you could qualify for penalty relief in the event you meet one of the IRS’ requirements. Some valid ways you might qualify for penalty relief include:

  • Failing to file a tax return
  • Failing to pay on time
  • Failing to deposit certain taxes that are required

The IRS may also consider some other reasons that would allow you to obtain this relief and avoid having to pay any fines. There are also three types of penalty relief:

  • Reasonable Cause
  • Administrative Waiver and First Time Penalty Abatement
  • Statutory Exception

When contacted by the IRS, is it important you acknowledge the issue and attempt to make it right. Sometimes we make mistakes with our tax returns or simply neglect to file because we are worried we will have to pay too much back to the IRS. The trouble is, when the IRS catches wind of this, they are going to make every attempt to get the money they are entitled to receive. If you owe money to the IRS but cannot afford to pay it back in the timeframe they have given, it is time for you to obtain your free consultation from one of the recommended Vermont tax attorneys featured right here on our site.


What is considered a reasonable cause?

“Reasonable cause is based on facts and circumstances in your situation.” If you did everything in your power to meet your tax obligations but were unable to do so, the IRS will consider certain situations.

Some situations where the IRS may approve you for penalty relief if you failed to file a return, make a deposit, or pay tax when due include:

  • A fire, accident, or natural disaster prohibited you from doing so.
  • You were unable to retain records.
  • A death or serious illness occurred which contributed to you being unable to meet your financial tax requirements.

Our Vermont tax lawyers acknowledge that the IRS does not consider a lack of funds as a viable reason for someone to not pay what is due. They may however, use the reason why you didn’t have the funds as a feasible reason, but you would need to speak with an IRS agent to determine this. One thing we suggest is that before you make any commitments with the IRS that you consult with one of our local tax attorneys in Vermont. There are numerous professionals working right in your area and we will gladly help you locate someone who understands tax law and its entirety, and is readily available to provide you with your free, no-obligation consultation.


If so, is ready to supply you with the assistance you need. We will help you free of charge as we understand how helpful a legal professional can be as they can clarify things for you that the IRS may not be able to.