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Pay the tax before or after requesting penalty relief?

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We get this question a lot from clients and those that are simply seeking information.  Sometimes its less of a question and more of a statement, something like –

“I’m not paying it until they take away the penalties!”

That’s fine, but you may not get too far that way.

The basic answer to the question is… pay it, then ask for relief.  If you can’t pay it all at once, set up a monthly Installment Agreement, then ask for relief.  

Tax Compliance Top Priority


The IRS wants to see a taxpayer in compliance before considering penalty relief.  If you pay in full and you’ve filed all necessary tax returns, you’re in a good spot to ask for it.  

If you’re in a formal Installment Agreement, you had to gain current tax compliance to get it.  That also puts you in a good spot to ask for it.

Even the easy way to get IRS penalties removed, the First-Time Abatement, requires the tax debt to be paid or a formal Installment Agreement in place.

If owe so much tax that you’ll never be able to pay it back, then you may need an Offer in Compromise, not penalty abatement.  

Contact us to find out how fix tax problems.

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Our Specialties

  • Tax Debt Resolution / Tax Relief
  • Offer in Compromise / IRS Settlement
  • IRS Penalty Abatement and Relief
  • Installment Agreement / Monthly Payment Plan
  • Tax Lien, Levy and Garnishment Removal
  • IRS Lien Subordination, Withdrawal, Discharge
  • Enrolled Agents / Tax Debt Specialists

Fresh Start Tax Relief LLC, Taxes - Consultants & Representatives, Chicago, IL

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