First, you should know that it is possible to negotiate a reduction in penalties and interest, but it is at the discretion of the IRS agent you work with. Second, it takes time, sometimes a year or two, to negotiate a reduction in interest or penalties with the IRS. The FTA is the easiest penalty relief option of all. You can request it by calling the toll-free number listed on your IRS notice, or your tax professional can call the hotline dedicated to tax professionals or the compliance unit (if applicable) to apply for the FTA for any amount of fine.
Your tax lawyer will explain that you are also responsible for paying an income tax rate if you file a late return. Once again, the fee is 5% of the outstanding balance and is charged monthly. Unless you can show that you have compelling circumstances and that you can't pay the amount you owe. In that case, your tax debt may be forgiven or reduced.
If you give the information to your tax lawyer, he can present this evidence to the IRS and negotiate the matter for you personally. Taxpayers can apply for an exemption from penalties. For not filing or paying the penalty, taxpayers can request that the IRS “reduce” or "forgive" the penalties. The reduction simply consists of eliminating penalties after they are imposed on the taxpayer.
Failure to file (FTF) and non-payment (FTP) penalties generally require a reduction because the IRS evaluates these penalties electronically (through its computer systems) when a return is filed or a transaction is made with a balance due.
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