Fortunately, the IRS has also created the FTA – first-time penalty abatement administrative waiver. As a business or individual taxpayer, you may receive a penalty on top of what you owe to the IRS. It allows compliant taxpayers to request abatement or remove certain penalties.
TheCPATaxProblemSolver, is experienced in penalty abatement.
Since our inception, we have successfully eliminated IRS penalties for a wide variety of clients.
You may qualify for relief from penalties if you made an effort to comply with the requirements of the law, but were unable to meet your tax obligations, due to circumstances beyond your control.
If you received a notice, be sure to check that the information in your notice is correct. If you can resolve an issue in your notice, a penalty might not be applicable.
Penalties Eligible for Relief
Penalties eligible for penalty relief include:
Failing to file a tax return
Failing to pay on time
Failing to deposit certain taxes as required
Other penalties as applicable.
Types of Penalty Relief
The following types of penalty relief are offered by the IRS:
Other administrative relief: If you received incorrect oral advice from the IRS, you may qualify for administrative relief.
Call the Toll-free Number on Your Notice
Is the information on your notice correct? If there is an issue you can resolve with your notice, a penalty might not be applicable. Call the toll-free number on your notice either to resolve the issue with your notice or to determine if you are eligible for First Time Penalty Abatement or other administrative waiver.
Penalty Appeal Online Tool
If you received a notice or letter stating we didn’t grant your request for penalty relief, you may want to use the Penalty Appeal Online Self-help Tool.
UNDERSTANDING ABATEMENT OF PENALTIES
A penalty abatement is a tax problem resolution designed to fully eliminate or lessen the degree of IRS penalties. The IRS penalties can roll out penalties that range from imprisonment to civil fines. Those fines can be over 25 percent of the total owed to the IRS.
If you have tried applying for an offer in compromise and it was rejected, penalty abatement is the next best tax problem resolution to consider. You can use it when negotiating repayment terms or an installment agreement.
Is Interest Relief Available?
Interest charged on a penalty will be reduced or removed when that penalty is reduced or removed. If an unpaid balance remains on your account, interest will continue to accrue until the account is full paid. See Interest Overview page for additional interest information.