Do you want to know if you qualify for first time penalty abatement of IRS? If yes, then you need to read this article. First time penalty abatement is a consideration given for people who are having a hard time paying their tax due. It would include filling out of penalty abatement form IRS and ensuring you meet all the necessary requirements as stated on the official site IRS.
How Much Can Be Abated?
The IRS will remove the penalty incurred in your tax in the first year. However, there is a set of monetary limits on the number of penalties that can be removed from your tax payables. If your tax penalties extend back over a year, the IRS will only get rid of you presented enough reasons for failing to file or make payments. Furthermore, you need to show the IRS that you are taking proactive measures to get past the issue. In other words, the IRS must be able to see your sincerity to pay your taxes, but because of unfortunate circumstances, you were unable to do so no matter how much you want to.
Examples of situations that belong to reasonable causes for failure to file or make payments to the IRS include the following:
- You don’t have enough records to calculate your tax obligations.
- The tax records are destroyed because of natural causes such as fire or floods.
- You are outside the country for some time.
- You were in prison or in a rehab facility.
- A significant member of the family died such as the spouse or child.
- Civil disturbances such as mail strikes prevent you from making timely payments.
- You receive bad advice from a representative of the IRS or receive bad information from a tax expert or tax professional.