The IRS may provide administrative relief from a penalty that would otherwise be applicable under its Penalty Abatement policy. You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes when due under the Service's First Time Penalty Abatement policy 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.
The failure-to-pay penalty will continue to accrue, until the tax is paid in full. It may be to your advantage to wait until you fully pay the tax due prior to requesting penalty relief under the Service's first time penalty abatement policy.
Other administrative relief: If you received incorrect oral advice from the IRS, you may qualify for administrative relief.
Is Interest Relief Available?
Interest charged on a penalty will be reduced or removed when that penalty is reduced or removed. If an unpaid balance remains on your account, interest will continue to accrue until the account is full paid.
Penalties eligible for penalty relief include:
Failing to file a tax return
Failing to pay on time
Failing to deposit certain taxes as required
Other penalties as applicable.
Types of Penalty Relief
The following types of penalty relief are offered by the IRS:
Administrative Waiver and First Time Penalty Abatement
Bakersfield Tax Relief
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Abate Tax Penalties
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