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Listen "Breaking Free from IRS Penalties: Understanding Penalty Abatement"
Episode Synopsis
Episode Summary
In this episode of Resilience and Resolve, host Kevin Rosenquist and tax attorney Lance Drury take a deep dive into the world of IRS penalties—and more importantly, how to get relief from them. From first-time penalty abatement to the complex process of proving reasonable cause, Lance explains what taxpayers need to know if they’ve fallen behind and are facing costly penalties. He also shares real-world examples, insider tips, and the critical importance of proper documentation and legal guidance.
If you’re navigating tax debt or penalties—or want to avoid them—this episode provides valuable, actionable insight.
Timestamps
00:00 – Welcome
Introduction to Resilience and Resolve with Lance Drury
00:26 – What Is IRS Penalty Abatement?
Understanding the two types: First-Time Abatement and Reasonable Cause
02:51 – First-Time Penalty Abatement Requirements
Eligibility and limitations for first-time relief
04:34 – Reasonable Cause Abatement
Examples of qualifying circumstances (illness, death, bad advice, etc.)
06:38 – The Penalty Abatement Process
How long it takes and the forms involved (Form 843, Tax Account Analysis)
09:39 – Required Documentation
Medical records and formal proof for reasonable cause claims
10:30 – Appealing a Denial
Your rights and what to expect from the IRS appeal process
12:27 – IRS Staffing Challenges
Why the IRS is overwhelmed and what that means for taxpayers
13:29 – Inside Track: How Lance’s Firm Helps
Using special software and legal expertise to cut through red tape
14:31 – Reasonable Cause Approval Rate
Lance’s insight on success rates and false promises in the industry
15:05 – Why You Shouldn’t Go It Alone
The dangers of self-representation and IRS communication
16:27 – IRS and State Agencies Bypassing Power of Attorney
How notices are handled and the need for professional monitoring
17:17 – Final Advice
Why hiring a professional makes all the difference
About the Show
Resilience and Resolve with Lance Drury breaks down the complex world of tax law into clear, practical guidance for individuals and businesses. Hosted by Kevin Rosenquist and featuring renowned tax attorney Lance Drury, each episode delivers essential insight into IRS dealings, tax resolutions, and the importance of legal strategy. Whether you're in tax trouble or want to stay out of it, this podcast gives you the tools to take control.
In this episode of Resilience and Resolve, host Kevin Rosenquist and tax attorney Lance Drury take a deep dive into the world of IRS penalties—and more importantly, how to get relief from them. From first-time penalty abatement to the complex process of proving reasonable cause, Lance explains what taxpayers need to know if they’ve fallen behind and are facing costly penalties. He also shares real-world examples, insider tips, and the critical importance of proper documentation and legal guidance.
If you’re navigating tax debt or penalties—or want to avoid them—this episode provides valuable, actionable insight.
Timestamps
00:00 – Welcome
Introduction to Resilience and Resolve with Lance Drury
00:26 – What Is IRS Penalty Abatement?
Understanding the two types: First-Time Abatement and Reasonable Cause
02:51 – First-Time Penalty Abatement Requirements
Eligibility and limitations for first-time relief
04:34 – Reasonable Cause Abatement
Examples of qualifying circumstances (illness, death, bad advice, etc.)
06:38 – The Penalty Abatement Process
How long it takes and the forms involved (Form 843, Tax Account Analysis)
09:39 – Required Documentation
Medical records and formal proof for reasonable cause claims
10:30 – Appealing a Denial
Your rights and what to expect from the IRS appeal process
12:27 – IRS Staffing Challenges
Why the IRS is overwhelmed and what that means for taxpayers
13:29 – Inside Track: How Lance’s Firm Helps
Using special software and legal expertise to cut through red tape
14:31 – Reasonable Cause Approval Rate
Lance’s insight on success rates and false promises in the industry
15:05 – Why You Shouldn’t Go It Alone
The dangers of self-representation and IRS communication
16:27 – IRS and State Agencies Bypassing Power of Attorney
How notices are handled and the need for professional monitoring
17:17 – Final Advice
Why hiring a professional makes all the difference
About the Show
Resilience and Resolve with Lance Drury breaks down the complex world of tax law into clear, practical guidance for individuals and businesses. Hosted by Kevin Rosenquist and featuring renowned tax attorney Lance Drury, each episode delivers essential insight into IRS dealings, tax resolutions, and the importance of legal strategy. Whether you're in tax trouble or want to stay out of it, this podcast gives you the tools to take control.
More episodes of the podcast Resilience and Resolve with Lance Drury
Penalty Abatement Relief or Red Tape
11/07/2025
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