Requesting Penalty Abatement

Requesting Penalty Abatement

abatementAre your penalties for failing to file a tax return, not paying on time, and/or to depositing taxes when due piling up? Read on to learn how you can reduce or completely eliminate those costs.

If such penalties exist on your file, the Internal Revenue Service (IRS) will have already sent you a notice to inform you of said charges. First, determine whether or not that information is correct and pertains to you. Issues can be addressed by calling the toll-free number listed on the notice, otherwise we recommend reviewing information with tax professionals to determine the best approach.

 

According to the IRS, you may qualify for abatement if you fall in either of the below categories:

  • You didn’t previously have to file a return or you have no penalties for the three tax years prior to the tax year in which you received a penalty.
  • You filed all currently required returns or filed an extension of time to file.
  • You have paid, or arranged to pay, any tax due.

Individuals are allowed to dispute interest and penalties as long as they have a reasonable cause, administrative waivers or found a mistake by the IRS.

When looking to remove penalties, you can do so through the First Time Penalty Abatement (FTA) program which is best if you have a good track record and plan to remain in compliance in the future.  

 

There are three other options as well:

  • Calling the IRS
  • Writing a letter
  • Submitting Form 843

In either case, you must be prepared to provide requested information and additional proof of your compliance. We understand that facing tax problems alone is overwhelming … consider contacting Tax Defense Partners to get some help!