The First Time Abatement (FTA) penalty waiver program is a relatively unknown program that allows taxpayers to request a waiver of failure-to-pay (FTP) and failure-to-file (FTF) penalties that have been applied to past due tax obligations. Introduced in 2001, this program allows taxpayers who have run into trouble with their tax obligations to avoid paying
first time penalty abatement
IRS Penalty Abatements – Reasonable Cause Factors
If a taxpayer is late with paying their taxes by their due date, they can face the possibility of having substantial tax penalties applied to their original tax balance. The types of late pay penalties fall into two categories: failure to pay and failure to deposit. Failure to pay is not paying by the tax
IRS Penalty Abatements – Undue Hardship
If a taxpayer is unable to make their tax payments due to a financial inability to pay them, in some cases they can be granted an Undue Hardship Penalty waiver. This waiver generally only applies to taxpayers who have filed their returns in a timely manner. However, just like the other penalty waiver provisions, this
Abatements and Reconsiderations
Abatements and Reconsiderations When a tax debtor fails to meet his or her federal tax obligations, he or she may too often assume that the taxes originally assessed were done so in the appropriate manner. However, this is often not the case, and in recognition of this fact the Internal Revenue Service (IRS) has been