A reminder for taxpayers who filed a delinquent return or paid taxes late:
You may qualify for a penalty waiver under IRS’s First Time Abate program.
IRS will OK a waiver of the late filing and late payment penalties for filers who pay or arrange to pay the tax due and have been tax-compliant for the past three years.
The penalties for late payroll tax deposits and delinquent returns of S corporations or partnerships are also eligible for the waiver if the conditions are satisfied.
You have to request the waiver. Here’s a tip if you get a penalty notice:
If you believe you have a good excuse for your tax mishap, ask IRS to first consider whether reasonable cause applies. Qualifying for this exception preserves your ability
to use the First Time Abate waiver if you have tax trouble again in the next three years. If IRS denies reasonable cause relief, then request first-time penalty abatement.
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