Did you know that you could have IRS Penalties Removed as a First Time Offender? There are times when Taxpayers come into our Richardson TX tax office who have penalties assessed by the IRS that we are able to have abated or removed. Th e dollar amount might be large or small but the key to having penalties removed are the circumstances related to each Taxpayer. Today, we’re going to focus on Penalty Abatement for First Time Offenders.
What Types of Penalties Can Be Abated?
The types of Penalties that can be removed include –
- Failure to File Penalties
- Failure to Pay Penalties
- Failure to Make Payroll Deposits
- Failure to File for S-Corps and Partnerships
A Failure to File Penalty for Individual Taxpayers is 5% of the unpaid taxes per month, up to a maximum of 25%, as well as the related interest. A Failure to Pay Penalty is .5%, up to a maximum of 25%, as well as the related interest. There are also penalties related to Payroll Returns and Deposits as well as business filings that can be removed for business First Time Offenders.
Conditions that must be Met
In order to qualify for the First Time Abatement –
- Either you didn’t have to file a return or have no penalties for the 3 tax years prior to the tax year you received a penalty.
- You have filed all currently required returns or have a valid extension to file.
- You have paid, or arranged to pay, any tax due. return, the IRS will gather all the transmitted tax documents and create a “substitute
What Does the Taxpayer Need to Do?
First try calling one of the following to Request the First Time Abatement –
- IRS Hotline at 1-888-829-1040,
- OR IRS Penalty Assistance Line 1-855-223-4017 X-225
Usually, the IRS will remove the penalty by phone if the Taxpayer qualifies. However, it is possible that they will require that the Taxpayer file a written request.
If You Need Help
If you need help, call me at (972) 821-1991 or email to email@example.com with any questions.
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