Use First Time Penalty Abatement to Remove IRS Penalties

If you’ve ever found yourself hit with an IRS penalty, you know penalties can add a significant amount to your tax bill and, if left unchecked, may even lead to more complications including additional interest, liens, and even levies.  Fortunately, the IRS offers a relief option for certain taxpayers called the First-Time Penalty Abatement (FTA). This program can help eligible taxpayers reduce or eliminate penalties in certain situations.

To qualify for the First-Time Penalty Abatement, you must meet the following criteria:

1. No Related Penalties in the Past Three Years
2. Filed All Required Returns
3. Arranged to Pay or Paid the Tax Due

The FTA is limited to certain types of penalties, including:

1. Failure-to-File Penalty
2. Failure-to-Pay Penalty
3. Failure-to-Deposit Penalty

How to Request FTA.  There are a few methods for requesting the First-Time Penalty Abatement:

1. You Can Call the IRS – This is typically quick and easier
2. Write a Letter

f you don’t meet the criteria for FTA, you may be able to request Reasonable Cause Relief.  Reasonable cause relief can be more complex and confusing but it is an option for those that qualify.  If you’d like to discuss this to see if we can help you, give me a call at (972) 821-1991 or go directly to my calendar at https://jablonskyandassociates.com/contact/