Reasonable Cause Relief (RC)
It is where the taxpayer can ascertain that they used ordinary care and prudence but can't comply on time due to unforeseen events outside their control.
IRS' First-Time Penalty Abatement Relief (FTA)
It can be used to abate both the FTF and FTP penalties for taxpayers who have a good standing with a clean compliance history.
When requesting FTF and FTP penalty relief, it is necessary to follow some best practices to succeed. Here are some of the do's and don'ts when requesting an abatement:
- Always utilize FTA
- Make a reasonable and valid cause letter
- Appeal adverse determinations
- Be sure to include evidence of unfortunate events for the time of your non-compliance.
- Show prior compliance
- Follow up on abatement request
- Do not pay the penalty
- Do not use abatement based on reliance on tax professionals and financial hardship for FTF
- Do not forget to request abatement timely before the ordinance expires.
Successful penalty abatement can take some time but can be approved by phone instantly. To learn more, give us a call! Tax Experts For America are always here, ready to help you! We are your reliable and professional tax help that you can always rely on at any time! We also offer reliable IRS Payroll Tax Settlement services.
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