Reduce or Eliminate IRS Penalties IRS penalties can add 25% or more to your tax liability, turning a manageable tax debt into an overwhelming financial burden. Combined with compounding interest, penalties can cause your balance to grow rapidly — sometimes doubling the original amount owed. At Neil Jesani Tax Resolution, we specialize in identifying and pursuing every available avenue for penalty relief, saving our clients thousands — and in many cases, hundreds of thousands — of dollars. Our team of CPAs, Enrolled Agents, and tax attorneys understands the complex rules governing IRS penalties and the specific criteria the IRS uses when evaluating abatement requests. We build compelling, well-documented cases that demonstrate you qualify for relief under one or more provisions of the tax code. Penalty Relief Strategies First-Time Penalty Abatement (FTA) is available to taxpayers with a clean compliance history — meaning you filed all required returns on time and paid all taxes due over the prior three years. This administrative waiver can eliminate substantial penalties with a single request when the criteria are met. Reasonable Cause abatement applies when circumstances beyond your control — such as serious illness, natural disaster, death of a family member, destruction of records, or reliance on incorrect professional advice — prevented timely compliance. We document these circumstances thoroughly and present them in the framework the IRS uses to evaluate reasonable cause claims. We also pursue Statutory Exceptions when IRS errors, processing delays, or incorrect advice contributed to the penalty, and Administrative Waivers for specific situations outlined in IRS guidance and internal policy. For cases involving audit adjustments , we coordinate penalty abatement with the overall appeals strategy to maximize your total savings. When penalties contribute to a larger balance, our collections defense team works to protect your assets while we pursue abatement. Common Penalties...