Wednesday, October 17, 2012

IRS fails to inform taxpayers they qualify for Penalty Relief.

IRS fails to inform taxpayers they qualify for penalty relief to the tune of $181 million in 2010

TIGTA estimated that for Tax Year 2010, approximately 250,000 taxpayers with Failure to File (FTF) penalties and 1.2 million taxpayers with Failure to Pay (FTP) penalties did not receive penalty relief even though they qualified under First-time Abate (FTA) waiver criteria.

TIGTA estimated the unabated penalties totaled  more than $181 million. Further, the FTA waiver is not used to its full potential as a compliance tool because it is granted to taxpayers before they demonstrate full compliance by paying their current tax liability.
Taxpayer requests for penalty abatements were not always processed accurately. The IRS took immediate corrective action to address this issue.
In addition, taxpayers who qualify for penalty relief based on reasonable cause may receive First-time Abate (FTA) waivers instead, which can negatively affect some taxpayers.
Feel like you have a Reasonable Basis to have your Penalties Waived, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).



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