IRS Penalty Relief Programs
Many taxpayers are eligible for FTA, but don’t know about the program. If you don’t ask for penalty relief, you won’t receive it.
You need to meet the following criteria to receive FTA:
- You can only request penalty relief for one tax year, and you must have not penalties in the previous three tax years.
- You must not have any unfiled returns.
- You must have paid or arranged to pay any tax due. This includes agreeing to a monthly payment plan.
Reasonable cause penalty relief is another option. You can request this relief if your failure to file or pay taxes was caused by circumstances outside of your control.
Fires, natural disasters, death or serious illness of a taxpayer’s immediate family, or an inability to obtain records may all qualify for reasonable cause relief. You can request this type of relief for the failure-to-file penalty, failure-to-pay penalty, and the failure to deposit penalty.
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