Richardson TX - Removing IRS Penalties Using First Time Abatement

Education & Training with Bob Jablonsky & Associates

Today, we’re going to spend some time talking about how to have an IRS Tax Penalty removed if it is your first offense or the first in 3 years.  This is a common issue for taxpayers that come to our Richardson TX office to discuss tax problems.  Penalties can double your tax debt (or more) over time.  The IRS does not simply remove penalties upon request.  It is the government’s position that penalties serve as a valuable tool in compliance.  However, First Time Abatement, is a circumstance in which you may be able to get your penalties abated. 


What Qualifies as a First Time Penalty Abatement?

The First Time Penalty Abatement (FTA) is available for 3 penalties –

  • Failure to File
  • Failure to Pay
  • Failure to Deposit (Payroll Deposits)


The IRS Website states that you may qualify for relief from penalties if the following are true –

  • You didn’t previously have to file a return, or you have no penalties for the 3 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.


That’s it.  If you were penalized for any of the reasons above, are currently in tax compliance, and have not had a penalty for the 3 prior tax years, you should qualify.


How Do You Get the Abatement?

To request the penalty relief, the taxpayer can call 1-800-829-1040 or the new IRS Penalty Assistance line at 1-855-223-4017 X-225.  It is possible that the IRS may request that you make the abatement request by letter if a certain amount is exceeded.


Do You Need Help?

If you need help with Tax Penalty Relief or any other IRS Collection issue, I’d be happy to talk with you.  Please give me a call at (972) 821-1991 or email me at bob@jablonskyandassociates

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