You may qualify for relief from IRS penalties if you made an effort to comply with the requirements of the tax law, but were unable to meet your tax obligations, due to circumstances beyond your control.
If you received an IRS notice, be sure to check that the information in your notice is correct. If you can resolve an issue in your notice, a penalty might not be applicable.
Penalties eligible for relief include:
- Failing to file a tax return
- Failing to pay on time
- Failing to deposit certain taxes as required
- Other penalties as applicableTypes of Penalty Relief offered by the IRS include:
- Reasonable Cause
- Administrative Waiver
- First Time Penalty Abatement
- Statutory ExceptionInterest Relief:The IRS does not abate interest for reasonable cause or as first-time relief. Interest is charged by law and will continue to accrue until your account is paid in full.When it comes to IRS penalties, always request an abatement before paying the penalty. If you pay the penalty first, you most likely will not be able to recover your payment from the IRS.Mike Lupo, SCORE CounselorVisit us at: www.scoresouthflorida.net