Late Filing and Penalties

[Duane Anderson]

I have a long time client who I just completed their returns for 2013-2018. In the early years small refunds were due which will not be paid because of the late filing. but for 2018 the tax bill was just over $100,000. We really have no legitimate reason for the late filing and late payment so the IRS amounts due are some $40,000. Any ideas how we can reduce or abate this penalty and the reasons the IRS would reduce the penalty...Thanks,,,Duane Anderson

[Lion]

Will he qualify for First Time Abatement after all returns are filed and processed? Is 2018 his only balance due?

[TAXNJ]

First option as Lion suggests First Time Abatement.

In addition to other reply posts, some other options if needed

• An installment agreement
• An offer in compromise

If you are not experienced or uncomfortable, suggest Client get professional representation

[Duane Anderson]

He owed $3,000 for 2017 and 2013 - 2016 were all small refunds...Thanks,,,duane

[TAXNJ]

He owed $3,000 for 2017 and 2013 - 2016 were all small refunds...Thanks,,,duane

see first time abatement rules:

https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief-due-to-first-time-penalty-abatement-or-other-administrative-waiver

[Uncle Sam]

TTB - page 15-2 - First Time Penalty Abatement

[New York Enrolled Agent]

No doubt FTA is a valuable tool but I think you don't get to 'pick your year". If it's applicable it will be used for the 2017 tax year and not the 2018 tax year with the much, much larger liability..