Hi everyone, today, I want to give you a brief presentation on how, you, as a taxpayer can abate certain penalties from the IRS by using the First Time Abatement.
A brief background about myself. I worked with the IRS for six year as a Revenue Agent i would perform audits on tax returns, including Partnerships, Corporations, and S-Corporations. Now I want to share with you how you can abate a penalty.
First let's start by defining, What is the First Time Penalty Abatement?
The First Time Penalty Abatement, its an administrative relief from penalties for not filing a tax return, by the due date, and not paying the tax due, by the due date. Also known as Failure to File and Failure to Pay.
The IRS can remove the penalties assessed for filing and paying late.
Why does the IRS assess these penalties?
The IRS utilizes penalties to promote voluntary compliance. What does that mean? the IRS uses the penalties to make taxpayers aware of the consequences for not filing and paying on time.
What is the criteria that taxpayer must meet to have the penalties abated? 1. You have to be current or filed a valid extension for all your tax return,
2. You must have paid, or arranged to pay, any tax currently due, that means you can owe taxes but have an installment agreement in effect.
3. You could have not incurred any penalties within the prior 3 years. For example, you are penalized with the failure to file penalty for 2018. In order for the IRS to abate the penalty using First Time Penalty Abatement, you could not have incurred any penalties for 2015, 2016, 2017
How to Request the First Time Penalty Abatement?
You can call the phone number on the notice received from the IRS stating that you were penalized for not filing on time.
Tell the IRS you are requesting the First Time Abatement as per IRM 20.1.1.3.3.2.1, make sure you state the penalties for failure to file and pay.
By Writing, send the letter to the service center where you would be required to file for your current year.
Tell the IRS you are requesting the First Time Abatement as per IRM 20.1.1.3.3.2.1, make sure you state the penalties for failure to file and pay.
Lastly, we can help you call or file the letter with the IRS.
You can give us a call at 956-602-0179
You can also hit us up with any questions you may have.