IRS Penalty Relief you should know about

Eagan MN

23 August, 2021

11:58 AM

Description

If you owe back tax debts you may qualify for some type of penalty relief from the IRS. The IRS will not inform you about the type of relief available to you. It is your responsibility to request a penalty abatement or penalty release on the back taxes from the IRS. The following types of penalty relief are offered by the IRS. First Time Abatement (FTA) This is the easiest and the most common penalty abatement. You can ask for the FTA over the phone or through a written request . You may qualify for administrative relief FTA from penalties for failing to file a tax return, pay on time, and/or to deposit taxes. Certain conditions must be met. The conditions are: 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. Reasonable Cause This is the toughest penalty relief to get from the IRS. It is very subjective because it is based on all the facts and circumstances of the situation. Some of the situations that the IRS will consider according to the IRS Manual includes Fire, casualty, natural disaster or other disturbancesInability to obtain records Death, serious illness, incapacitation or unavoidable absence of the taxpayer or a member of the taxpayer’s immediate familyOther reason which establishes that you used all ordinary business care and prudence to meet your Federal tax obligations but were nevertheless unable to do so Other Administrative Relief This is the type of relief is due to incorrect oral advice from the IRS. You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes. If you or anyone you know have unfiled returns and have back tax issues with the IRS or State . Please feel free to contact me by phone or email. Joe Alabi EA MAcct (Taxation) FishCoin Tax Solutions 4124 Quebec Avenue North Suite 307 New Hope,MN 55427 Phone : 612 516 5878