Tax Tips – Penalty Relief

If you make a mistake on your income taxes, you may receive a penalty from the IRS. In some circumstances, the IRS can provide relief from certain penalties, such as:
• Failing to file a tax return
• Failing to pay on time
• Failing to deposit certain taxes as required
Types of penalty relief offered by the IRS:
Reasonable Cause
If you can show that you tried to meet your obligations, but didn’t succeed in doing so, you may be forgiven. Some circumstances would be a house fire, a natural disaster, or a death in the family.
Administrative Waiver and First-Time Penalty Abatement
Relief may be possible if you:
• Didn’t previously have to file a return or had no penalties for the three years prior to the IRS assessed penalty.
• Filed all currently required returns or filed an extension of time to file.
• Paid or arranged to pay any tax due.
Statutory Exception
It’s possible you’ve received incorrect written advice from the IRS, which may result in an exception.
*This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from[9]