End IRS Penalties & Interest
Reduce or Eliminate Penalties and Interest on Your Tax Debt
IRS penalties and interest can double your tax debt over time. Axio Tax Relief evaluates your unique situation and helps you get started on the road to financial recovery.
How Penalties and Interest Work
When you owe taxes to the IRS, you're not just responsible for the tax itself. The IRS adds penalties for various violations (late filing, late payment, accuracy issues) and charges interest on the entire balance, including penalties. This can cause your debt to grow rapidly.
Penalties are assessed for specific violations of tax law and can often be reduced or eliminated if you have reasonable cause. Interest, however, is mandatory by law and can only be reduced in limited circumstances, such as when the IRS made an error or unreasonably delayed your case.
The key to minimizing penalties and interest is taking action quickly. The longer you wait, the more your debt grows, making resolution more difficult and expensive.
Common IRS Penalties
Failure to File
5% per month, up to 25% of unpaid taxes
Assessed when you don't file your return by the due date
Failure to Pay
0.5% per month, up to 25% of unpaid taxes
Assessed when you don't pay your tax by the due date
Accuracy-Related
20% of the understated amount
For negligence or substantial understatement of income
Estimated Tax
Varies based on underpayment amount
For not making required quarterly estimated payments
How We Reduce Penalties and Interest
Penalty Abatement Requests
We prepare comprehensive penalty abatement requests based on reasonable cause or first-time penalty abatement eligibility.
Interest Abatement Claims
We identify situations where interest can be reduced due to IRS errors or unreasonable delays.
Documentation Support
We gather and present evidence supporting your reasonable cause arguments for penalty relief.
Preventive Strategies
We help you avoid future penalties through proper compliance and timely filing/payment.
Penalty and Interest Relief Options
Reasonable Cause Abatement
If you can show reasonable cause for your failure to comply (illness, natural disaster, death in family, etc.), the IRS may remove penalties.
First-Time Penalty Abatement
If you have a clean compliance history for the past three years, you may qualify for automatic penalty removal.
Statutory Exception
In certain situations defined by law, penalties may be abated due to written IRS advice, natural disasters, or other statutory reasons.
Administrative Waiver
The IRS may reduce or suspend interest if their error or delay unreasonably prolonged your case.
Significantly Reduce Your Tax Debt
Penalties and interest can account for 50% or more of your total tax debt. By eliminating or reducing these charges, we can dramatically decrease what you owe and make resolution more affordable.
Get Your Free Consultation
No obligation · No Cost
Expert tax relief team ready to help
Available Monday–Friday, 9am–5pm (PT)