Penalty Abatement for Taxes

Waivers Offered By The IRS For Relief Against Penalties

Tax penalties can make the bitter pill of paying taxes even harder to swallow. If you miss payments or make some other error, the IRS can inflict penalties upon you, usually in the form of additional monetary fees. Unfortunately, these penalties are often unjust and many taxpayers are unaware that there can be a way out – penalty abatement. By requesting penalty relief, you can have your tax penalties eliminated entirely. Because the process can be confusing and not everyone automatically qualifies, it is important to retain a Santa Clarita tax attorney you can trust. Look no further than the team at RJB Law Offices.

What Is IRS First Time Penalty Abatement?

First-time penalty abatement (FTA) is a waiver that the IRS grants to taxpayers in order to relieve them from penalties such as failure-to-file, failure-to-pay, and failure to deposit. FTA is only granted if the taxpayer meets certain criteria.

The FTA was introduced nearly 15 years ago and individuals can request an FTA for the first two penalties, while businesses and payroll taxpayers can request an FTA for all three, depending on the circumstances.

Who is Eligible for Penalty Abatement?

Individuals, businesses, and payroll taxpayers may request FTA if they are eligible.

To qualify, there are compliance criteria:

• Have a clean 3-year penalty history
• All required returns have been filed. If you owe, you must be current on your arrangement with the IRS.

How to Request First-Time Penalty Abatement

The process of applying for an FTA can be done over the phone, online, or in writing. It is important to clearly state the intent of your request and submit all of the necessary documents right when you apply. RJB Law Offices can assess your case and ensure that you follow the correct guidelines as stated by the IRS. It is always better to exercise more care than you think is necessary when petitioning for penalty abatement.