Request IRS Penalty Abatement With The Help Of Tax Experts

Have you been fined by the IRS for failing to comply with the tax return laws? The good news is that the IRS provides three types of penalty relief in such cases.

IRS Penalty Relief

The IRS provides penalty abatement in three cases if you failed to file or pay taxes on time. You should apply for an abatement so that the bills don’t just keep on piling up for you.

If you’ve failed to file or pay taxes for the first time, then you’ve this option open for you. However, you must meet the following conditions to qualify:

  • You’ve filed your tax returns or requested an extension.
  • You’ve had no other penalties levied on you in the previous three years.
  • You’ve paid your due taxes or made arrangements to do so.

And not only individuals but also businesses can request a first-time penalty abatement.

If you’ve a sound reason for not filing your taxes or paying them on time, then the IRS may offer you relief from penalties. Here are the situations in which you may get tax abatement:

  • You or an immediate family member fell serious ill or died
  • A natural disaster, such as floor or hurricanes, prevented you from filing or paying your taxes on time.

There are other sound reasons, but you’ll have to discuss those with a tax expert.

Certain statutory exceptions for which the IRS provides relief from penalties include:

  • Incorrect instructions: you received incorrect instructions from the IRS itself.
  • Natural disaster: you live in a federal disaster area.
  • Mail issues: you had mailed your tax return and payment on time but you still received a penalty.

People who serve in a military combat zone may qualify for tax abatement through a statutory exception.

Types of IRS Penalties Eligible for Relief

Sure, here is a unique version of the information in bullet-point format:

Failure-to-File (FTF) Penalty:

You may be eligible for first-time penalty abatement if you have a clean record with the IRS and have consistently met your tax obligations. Additionally, the penalty may be reduced or waived if you can demonstrate reasonable cause or meet the criteria for a statutory exception.

Failure-to-Pay (FTP) Penalty:

If you were unable to pay your taxes on time, you may qualify for penalty relief through reasonable cause, first-time penalty abatement, or statutory exception.

Accuracy-Related Penalties:

These penalties are typically imposed when you understate your income or claim deductions or credits that you are not entitled to. If you can show that you acted in good faith or had reasonable cause for the error, the penalty may be reduced or waived.

Failure-to-Deposit Penalty:

Employers who fail to file their employment taxes on time or in the correct amount may be eligible for relief if they can demonstrate reasonable cause. In some cases, first-time penalty abatement may also be available.

Underpayment of Estimated Tax:

Individuals or businesses who do not pay enough estimated tax or pay it late may be eligible for penalty relief in certain circumstances.

Dishonored Check:

If your check is returned or your electronic payment is rejected, the penalty may be removed if you can demonstrate reasonable cause.

IRS also favors those who’ve had a good record with them. If it’s your first time receiving a penalty from the agency, then your penalty abatement is more likely to get approved.

How to Request a Penalty Abatement from the IRS

You can request IRS penalty abatement within three years of filing your return or two years after paying the penalty.

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    First-time penalty abatement (FTA) requests:

    You can call the IRS . It’ll be even better if you contact them after you’ve paid your taxes and penalty in full. You’ll have to file the IRS Form 843 to claim a return or a request for abatement.

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    Reasonable cause:

    You can still use the Form 843 to make this request. However, you’ll have to provide records, such as court records or medical records, to substantiate your claims; otherwise, your request will be rejected.

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    Statutory exception:

    The Form 843 is used for this too. You can provide a copy of the incorrect instructions that you received from the IRS so that the agency can verify it.

You can follow up with the agency after you’ve filed the request for a tax penalty abatement.

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