IRS Help - Penalty Abatement

Posted 8/7/2015

In your world as a tax practitioner, you will be dealing with some taxpayers who does not like to file and pay taxes. For the IRS, this is just another legal way to get more money from taxpayers. Taxpayers will be charge for tax, penalties and interests, and eventually they will have to face and resolve their tax situation. The IRS likes to collect taxes, but at the same time it offers some very good programs to help taxpayers. FTA is a programs to help taxpayers to abate penalties. The FTA program or "first time abatement of penalties program is a very good tool to help your clients. To qualify for this program according IRC Sec. 6651 you must be in compliance for the preceding 3 years. There are different penalties that can be waived using this program: failure to file, failure to pay, and failure to deposit in case you have issues with payroll taxes. It is important to mention that the estimated tax penalty - ES Form 2210 does not qualify for relief under this program.

This program does not have any dollar amount limit or threshold ceiling. There are some requirements to qualify to this program, as I mentioned above, you must be clean and in compliance for the last 3 years, and if you have a tax balance, you must have an active installment agreement in place, just to mention some of the factors the IRS considers to qualify for this relief. If you have problems paying your taxes, contact your accountant or tax professional to take advantage of this program that can help you to save some money. 

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