First Time Offender — Penalty May Be Abated

It’s a little known fact that some IRS penalties can be automatically abated for first time offenders.  And IRS has recently updated its policy in this area, after an April, 2013 report from the Treasury Inspector General for Tax Administration (TIGTA), which found that the policy had not been consistently administered, and that few taxpayers qualifying for relief actually request it.

The updated policy requires that a qualifying taxpayer must have filed all currently required returns and paid or arranged to pay any tax due.

Relief is not available for information reporting penalties.  Practitioners can request first time abatement by calling the IRS Practitioner Priority Service (PPS) line at 866-860-4259.