FIRST TIME PENALTY ABATEMENT – WHAT YOU NEED TO KNOW

I am a Forensic CPA; I work with taxpayers looking for help resolving tax disputes between themselves and the IRS and/or state tax authorities.  My office is located in Minneapolis, MN, however, my client base is spread throughout Minnesota. Because of COVID, the IRS temporarily scaled back its efforts to collect unpaid taxes. Recently, the IRS has gone on a hiring spree and become more vocal about collecting unpaid taxes.  It is only a matter of time before collection notices and levy’s start to appear in the mailboxes of taxpayers with unpaid and/or unfiled tax returns.

 
The IRS can and does assess penalties and interest in addition to the taxes owed when a taxpayer is non-compliant.  
Fortunately, the IRS allows for first time penalty abatement relief for failure-to-file, failure-to-pay and/or failure to deposit penalties incurred in 2001 and later. Naturally, there are certain requirements that must be met in order to qualify for the first-time abatement:

1.    The abatement can be for only one tax period,
2.    The taxpayer must not have been assessed failure to file or failure to pay penalties for three years prior to the year under consideration,
3.    The taxpayer has filed or extended all required returns currently due, AND
4.    The taxpayer has paid or made arrangements to pay taxes currently due.

 
The interest charged on a penalty may be reduced or removed when the penalty is reduced or removed

If you or someone you know has incurred failure-to-file, failure-to-pay and/or failure to deposit penalties and interest I can help them resolve the issue and restore their peace of mind.  Please feel free to contact me at either (952) 405-2082 or by email at fnutecpa@gmail.com. 

Frank Nute MS, CFE, CPA, CFF, CGMA, CTRC
Frank E. Nute Certified Public Accountant PC

3300 Edinborough Way #550

Edina, MN 55435

Ph. (952) 405-2082

Fax (952) 405-2083

fnutecpa@gmail.com