IRS Penalties? KT Can Help.
If you receive a notice from the IRS, know that you are not alone. The IRS sends out millions of notices to taxpayers every year. Many of these notices contain failure to file and/or failure to pay penalties. Oftentimes, the notices are incorrect and require a response from the taxpayer. But even if the penalties are justly assessed, there are options available to request a reduced penalty or penalty removal.
One option for penalty removal that may be available to you is the First Time Penalty Abatement (FTA). FTA applies to failure to file, failure to pay, and failure to deposit penalties. To be eligible for penalty relief under FTA, you (or your business) must meet the following requirements:
- There were no penalties assessed for the three prior tax years.
- All filings are up to date.
- Any tax due has been paid.
FTA is available every three years provided the requirements above are met – it is not just a one-time benefit. FTA may be requested over the phone or in writing. If FTA is not available to you, you may consider requesting penalty relief based on reasonable cause.
IRS issues can be complex, and as noted before, millions of people receive IRS notices every year. The good news is, KT has a dedicated team of professionals available to help you in dealing with the IRS. Please contact us if you have received an IRS notice and would like our assistance.