From earliest childhood we value the opportunity to cry ‘do over’ when we make an honest mistake. Adult life, and in particular our relationship with the IRS, doesn’t usually offer opportunities to ‘do over’. However, one program does – First Time Abatement.
First Time Abatement is an IRS penalty waiver program that provides a way for well-meaning taxpayers to avoid penalties. It covers failure to file, failure to pay, and failure to make an installment deposit. In order to qualify for abatement, taxpayers must demonstrate full compliance for the past three years, and be current with filing and payments.
Taxpayers must request the program in order to be considered. The IRS doesn’t publicize the program, and won’t apply the abatement unless taxpayers request it.
A 2012 report from the Treasury Inspector General for Tax Administration revealed that more than 91% of taxpayers who qualify never request the abatement. Those taxpayers and their personal tax service advisors probably weren’t aware of the program.
Note that qualifying taxpayers must have a record of responsible tax filing.
Learn how to request a one-time abatement
At Clarus Partners we help our clients comply with the IRS, and we’re here to help them request a one-time-courtesy abatement when a problem arises. Contact Nancy Supowit at Columbus, Ohio CPA firm Clarus Partners and she’d be glad to evaluate your particular situation and find a suitable solution.