If you've received an IRS penalty for filing or paying late, you may not have to pay it. The IRS offers First-Time Penalty Abatement, a relief program for taxpayers with a clean compliance history.

What penalties does it cover? First-Time Abatement applies to failure-to-file, failure-to-pay, and failure-to-deposit penalties. It does not cover the estimated tax (underpayment) penalty.

Who qualifies? To qualify, you generally need:

• No significant penalties in the prior three tax years

• All currently required returns filed (or a valid extension)

• Any tax due paid, or an approved payment plan in place Some taxpayers are even receiving refund checks after the IRS removed penalties they had already paid.

When it won't work If you file late every year or regularly have IRS penalties, First-Time Abatement likely won't apply.

Other relief, such as reasonable cause, may still be an option. Need help with an IRS penalty?

Passelli Accounting Services helps individuals and small business owners in Royal Palm Beach, Wellington, Loxahatchee, and Greenacres request penalty relief and stay compliant.

Call 561-386-3997 to book a consultation. Educational purposes only; not tax, legal, or financial advice.