Avoiding Penalties Through the First Time Abate Policy
Taxpayers who are facing a potentially large IRS penalty for late or unpaid taxes may be eligible for relief through the First Time Abate policy. This provides an opportunity for people who have fallen behind to become current on their tax obligations while eliminating any penalties from a previous tax issue. The First Time Abate program allows a person to work with an IRS attorney to relieve the stress in their lives.
In order to qualify for the First Time Abate program, a taxpayer needs to have not had a previous delinquency with the IRS. You will want to work with an income tax attorney to determine if your case qualifies for the First Time Abate policy, as not all types of tax filings are eligible to have penalties waived. Examples of event filings that could qualify include:
- Form 706 U.S. Estate Tax Returns
- Form 709 United States Gift Tax Returns
- Form 1120 U.S. Corporation Income Tax Returns
You’ll need to be current with your taxes in order to be eligible to have your penalties waived through the First Time Abate policy. This means that if you have taxes that aren’t fully paid off but you are on a payment plan negotiated between your tax attorney in San Jose and the IRS, you can still qualify.
The First Time Abate policy gives you a second chance at resolving a tax problem. If you are facing penalties but can’t prove “reasonable cause” that you can’t afford the penalties, the Law Offices Of Jeffrey B. Kahn, P.C. believes you should consider the First Time Abate policy.