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Ely, Counselor at Law
Category: Legal
Satisfied Customers: 102584
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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Is there is law about getting relief on penalties time

Customer Question

is there is law about getting relief on penalties for first time audit?
Submitted: 1 year ago.
Category: Legal
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

Yes. Your CPA/tax professional/attorney would send the IRS a letter requesting waiver of penalties, and then it would be up to the IRS to make the decision. No form exists - this is simply a letter in business format, sent once the audit is completed.

This is called a first time abatement penalty waiver. See HERE. The IRS has total discretion and may waive the penalties (normally not all but about 25% or so) at their discretion. The qualifying factors considered by IRS are listed in the link.

This letter does not have to be sent by a professional - it may be sent by you. However, using a professional is recommended.

I have generally seen positive results with such a letter for people who qualify.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Customer: replied 1 year ago.
perhaps my entire question didn't get printed. I am asking about state of FL , not IRS. and my question is about state of FL, sales tax. we were just audited for the first time . is there a law/statue about relief on penalties for the first time audit?
Expert:  Ely replied 1 year ago.

Ah, my apologies. The question did cut off any mention of FL.

Generally speaking, state agencies do not waive penalties. They will agree to lump sum reduced payments if they are convinced that one cannot pay the whole thing, or, piecemeal payments, or some kind of combination of the two. But this is entirely up to the state. They tend to be less flexible than IRS in simply waiving the penalty, however.

Please note: If I tell you simply what you wish to hear, this would be unfair to you. I need to be honest with you and sometimes this means providing information that is not optimal. Negative ratings are reserved for experts who are rude or for erroneous information. Please rate me on the quality of my information; do not punish me for my honesty.

Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.

Expert:  Ely replied 1 year ago.
Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or replied positively. I am simply touching base. Let me know. Thanks!