TAXMAN Posted September 29, 2014 Report Share Posted September 29, 2014 What is this first time penalty abatement I keep reading about? Quote Link to comment Share on other sites More sharing options...
Lee B Posted September 29, 2014 Report Share Posted September 29, 2014 The one that I am familiar with relates to payroll tax deposits. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted September 29, 2014 Report Share Posted September 29, 2014 I used to be able to get refunds of penalties for people when they were up to date and it was the first offense. The last time I tried ....it didn't work. I don't mention it anymore. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted September 29, 2014 Report Share Posted September 29, 2014 I am currently working a payroll case, there is reasonable cause, but the IRS wants the liability to be paid first, then they'll consider it. Quote Link to comment Share on other sites More sharing options...
Lee B Posted September 29, 2014 Report Share Posted September 29, 2014 The payroll abatements for my clients have all been situations where they made their deposits several days to 10 days late long before the IRS would have issued a letter. Quote Link to comment Share on other sites More sharing options...
bertrans Posted October 10, 2014 Report Share Posted October 10, 2014 What is this first time penalty abatement I keep reading about? The so-called First Time Abate is a procedural matter in the Internal Revenue Manual (IRM); it does not exist in the Internal Revenue Code (aka, The Law). Further, even in the IRM, it does not apply to any penalties asserted by Exam (the whole 6662 series.) Quote Link to comment Share on other sites More sharing options...
jklcpa Posted October 10, 2014 Report Share Posted October 10, 2014 Articles with an overview are from the AICPA and Journal of Accountancy: http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2012/CPA/Nov/PenaltyAbatement.jsp http://www.journalofaccountancy.com/Issues/2013/Jul/20137885.htm Quote Link to comment Share on other sites More sharing options...
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