If you filed your tax-return late or owed tax to the IRS past the 4/15 payment deadline, you will be assessed a “Failure to File Penalty” or a “Failure to Pay Penalty”. These penalties can be up to 25% of your unpaid tax. The IRS has a first-time abatement program whereby if you have not had a similar penalty in the previous 3 years, they will automatically waive these penalties if you call and ask them. In order to take advantage of this, prepare the tax return without the penalty, don’t pay the penalty, and wait for the notice from the IRS assessing the penalty and asking you to pay it. Then call the IRS and see if the penalty can be waived.
Accounting and Consulting