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If you receive a letter from the IRS saying you owe tax on a return that has already been filed you might not.  Do not pay the tax on the notice until you have contacted me as your certified public accountant.  Do not assume the amount due is correct.  The IRS sends computer generated notices and calculation is frequently wrong. Once we determine the status of your return it is likely that it will be amended.  You may even find yourself receiving a refund. If you do additional tax I can help you set up and installment agreement that you can afford. 


What is the IRS’s first-time penalty abatement waiver?

You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes when due under the Service's First Time Penalty Abatement polic. Most returns covered including Income tax returns for indivudals, partnerships, corporations and s corporations.  Payroll returns and Employment tax returns are also eligible.

To qualify for the FTA waiver, a taxpayer must meet the following criteria:  (1)  You didn't previously have to file a return or you have no penalties of the 3 years prior to the tax year in which you received a penalty. (2) You filed all currently required returns or filed an extension of time to file. (3) You have paid, or arranged to pay, any tax due.  

The failure-to-pay penalty will continue to accrue, until the tax is paid in full.  It may be to your advantage to wait until you fully pay the tax due prior to requesting relief under the Service's first time penalty  abatement policy.  Interest  charged a penalty will be reduced or removed when the penalty is reduced or removed. If any unpaid balance remains on your account , interest will continue until the account is fully paid.​


There is a penalty for not filing these returns onetime. For partnerships the due date is April 15 and for Corporations the due date is March 15. These deadlines can be extended to September 15. If you file late there is a penalty of $195 per partner or shareholder per month. Is some circumstances the penalty can be abated if it is a first time offense for an S Corporation. If you filed your partnership return late and you have 10 or fewer partners your penalty may be abated if the parters filed their returns on time reporting their share of partnership items on the return by their due date with extensions. The penalties can be abated for other reasonable cause also. We just have to figure out a reason and send letters to the IRS until we reach someone who actually takes an interest in the matter.  

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