IRS Penalties can be Abated

By
Services for Real Estate Pros with Backoffice Squared

I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. Penalties for Failure to File, Failure to Pay, or Failure to Deposit can increase your tax bill by another 25%. There is a way to get these penalties reversed called the First Time Penalty Abatement or FTA for short.

To qualify, you must have the following covered:

  1. You must currently be in “compliance”, meaning that all your filings and have made and all your current year estimated and withholding taxes have been paid.
  2. Your record must not show previous penalty assessments for the past three tax years.

To request the penalty abatement, use the following procedures:

  • If you have not paid the penalty, contact the IRS by phone and ask for the abatement or you can request it in writing by typing up a statement requesting the abatement.
  • If you have paid the tax within the last three years, then file Form 843 requesting the money be returned.

The First Penalty Abatement is automatically approved if you meet the qualifications. However, there can be a glitch that you must deal with. The IRS uses an automated process called the “Reasonable Cause Assistant” (RCA for short) to determine if you qualify. Your chances that this software will return the right answer is about 50-50. This means you will have to work with the IRS employees to fix whatever record keeping problem is resulting in the wrong answer.

If you or someone you know has received a Notice of Intent to Levy or some other federal or state tax issue, please feel free to contact me at either (352) 317-5692 or email jim@backoffice2.net.

 

Jim Payne, CPA

Backoffice2

Gainesville, FL

Cell (352) 317-5692

Office (352) 376-9401

Fax (352) 376-9440

jim@backoffice2.net

https://backoffice2.net

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Local News and Events
Tags:
irs
gainesville
liens
florida
levies
tax representation
penalty abatement
first time penalty

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
536,114
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Great information!!!

Penalties for Failure to File, Failure to Pay, or Failure to Deposit can increase your tax bill by another 25%. There is a way to get these penalties reversed called the First Time Penalty Abatement or FTA for short.

Oct 07, 2019 04:29 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
19,546

Jim Payne, CPA

CPA firm practicing in the area of IRS Collections
Ask me a question
*
*
*
*
Spam prevention