Penalty Relief From the IRS for Failure to File

Penalty Relief From the IRS for Failure to File

You pride yourself on always filing and paying your taxes on time. Unfortunately, even the most responsible taxpayers make mistakes on occasion. If you’ve found yourself hit with a penalty when you’re accustomed to being in good standing with the IRS, it’s only natural to feel stressed.

For now, you can breathe easy. In all likelihood, you qualify for penalty relief. The IRS offers an option for typically compliant taxpayers who make the occasional mistake. Also known as first time penalty abatement, this option applies to select failure to file cases. Keep reading to find out if you qualify — and to see why this solution is so beneficial.

Who Qualifies for Penalty Relief?

Failure to file penalty relief is most accessible to taxpayers with a history of filing on time and paying in full. Eligibility standards for the first time penalty abatement include:

  • A lack of IRS penalties for the previous three years.
  • All currently required returns have been filed — or relevant extensions have been secured.
  • All taxes due have been paid — or arrangements have been made with the IRS to fulfill these financial obligations.

How to Get Relief

How you proceed with getting penalty relief will largely depend on the nature of the notice you’ve received from the IRS. In some situations, it’s possible to seek penalty relief over the phone. Your letter from the IRS should include a toll-free number in the right corner.

Another option? Submitting the written document known as Form 843: the Claim for Refund or Request for Abatement. If IRS records suggest that you qualify for the first-time penalty abatement, it will most likely be applied. Still, you can improve your odds by working with an expert.

If you unexpectedly find yourself at odds with the IRS, it behooves you to get assistance from a tax professional. Our team at the Highland Tax Group can help you find a solution such as penalty relief. Contact us today to learn more.