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Tax.appeal.168
Tax.appeal.168, Tax Accountant
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First time filer, unfamiliar with the process filed S-Corp return in April, does being new

Customer Question

First time filer, unfamiliar with the process filed S-Corp return in April, does being new at this qualify for penalty relief? No other reasons than confusion about the process.
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.
Welcome. Thank you for choosing us to assist you. My name is ***** ***** my goal is to help make your life, a little... less taxing.
Let me first mention that an S-corp return is due March 15th, not in April. As this is the first time, you can file a FTA (First Time Abatement) waiver. SEE BELOW:
The IRS’s first-time abatement penalty waiver (FTA), although introduced 12 years ago, is infrequently used by qualifying taxpayers. An FTA can be obtained for a failure-to-file, failure-to-pay, or failure-to-deposit penalty.
A taxpayer may claim an FTA for only a single tax period. To qualify, taxpayers must not have been assessed any other penalties of a “significant amount” on the same type of tax return within the past three years and must be in compliance with all filing and payment requirements.
IRS personnel use a decision-support software tool called the Reasonable Cause Assistant (RCA) to help determine whether a taxpayer is eligible for an FTA. However, the RCA has been criticized for yielding a high percentage of incorrect determinations of FTA eligibility that IRS personnel generally do not correct.
Through persistence, a practitioner can often persuade the IRS to reverse an initial incorrect determination that a taxpayer does not qualify for an FTA.
REFERENCE SOURCE:
http://www.aicpa.org/publications/taxadviser/2013/july/pages/buttonow_july2013.html.aspx
Let me know if I can be of further assistance to you regarding this matter.

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