IRS Penalty Relief May Be Available for Late Filing or Payment

No one likes to receive a penalty notice from the IRS, but if you’ve filed or paid your tax return late, don’t panic – relief may be available. The IRS offers several types of penalty relief, depending on your unique situation.

ECS Financial Services can help you determine if you qualify and guide you through the process of requesting relief.

Common Types of IRS Penalty Relief:

1. Disaster Relief

Taxpayers affected by federally declared disasters may receive automatic deadline extensions for filing and payment. This relief also applies to employment tax deposits and estimated tax payments due after the natural disaster.

Even if you reside outside of a disaster area, you may still qualify for relief if your tax preparer or relevant records are located within a declared disaster zone.

2. Reasonable Cause Relief

If you can demonstrate that your failure to file or pay was due to circumstances beyond your control, such as illness, natural disaster, or reliance on incorrect professional advice, you may be eligible for reasonable cause relief.

To qualify, you must show that you acted in good faith and exercised ordinary business care and prudence in attempting to meet your tax obligations.

3. First-Time Abatement (FTA) Relief

The IRS also offers one-time penalty relief for taxpayers who have a clean compliance history for the previous three years. FTA may apply to:

• Failure-to-file and failure-to-pay penalties

• Failure-to-deposit penalties

• Certain partnership and S-corporation penalties

  
  

Need Help Navigating IRS Relief Options?

If you’ve received a penalty notice or missed a filing deadline, contact ECS Financial Services. Our experienced tax professionals can evaluate your options, prepare documentation, and advocate for relief on your behalf.