IRS Penalty Abatement Under New Tax Law

IRS Penalty Abatement Under New Tax Law


You hate IRS penalties; everyone does.


I may have explained that I have the IRS’s first-time abatement procedure, which is a valuable tool to defeat IRS penalties.


The IRS recently clarified that first-time abatement is truly “first-time”: It applies to only one tax period per taxpayer per return type. In addition, the preceding three-year period must now be 100 percent penalty-free (except for the estimated tax penalty).


If the first-time abatement is not available, I can use the reasonable cause procedure as a possible way to get your tax penalty abated.



Mark S. Fineberg, CPA