Does Your Taxpayer Qualify for Penalty Relief?

Something went wrong and the IRS never got your client’s tax return, or their tax payment. Now they’ve sent your client a letter with those dreaded words; Late Filing Penalty. Don’t panic yet! Your taxpayer may qualify for Penalty Relief.

First, check the letter to verify the information is correct. Our Customer Support team can also assist in verifying e-file information for you. If the information provided is accurate, you will then want to determine if your taxpayer can get relief from the payment.

  • Reasonable Cause – If you can provide proof that your taxpayer attempted to meet all required obligations but was unable to due to situational circumstances, the IRS can look over the taxpayer’s situation and determine if relief can be granted. These circumstances may include things such as a house fire, natural disaster, or death of an immediate family member.
  • First Time Penalty Abatement – If your taxpayer arranged to have payments made or has not had a tax penalty in the three prior years they can qualify to avoid the late penalty. This relief may only be used once every three years.
  • Statutory Exception – If your taxpayer has received incorrect written advice from the IRS, they may qualify for this exception.