Late Tax Filers May Qualify for Abatement of Penalties

The IRS has a program called the First Time Abate which allows for a taxpayer to have the late filing penalties waived. The IRS abatement of penalties only applies if the taxpayer has been compliant for the past three years. This means paying on time, filing on time, etc. This also includes the penalty for late payroll tax deposits.

To find out more about abatement, its inclusions, exclusions and instructions, check out IRS Form 843 Claim for Refund and Request for Abatement of Penalties.

Form 843 can be used for the following:

• A refund of tax, other than a tax for which a different form must be used.
• An abatement of tax, other than income, estate, or gift tax. Employers cannot use Form 843 to request an abatement of FICA tax, RRTA tax, or income tax withholding.
• A refund to an employee of excess social security or RRTA tax withheld by any one employer, but only if your employer will not adjust the overcollection.
• A refund to an employee of social security or Medicare taxes that were withheld in error, but only if your employer will not adjust the overcollection.
• A refund of excess tier 2 RRTA tax when you had more than one railroad employer for the year and your total tier 2 RRTA tax withheld or paid for the year was more than the tier 2 limit.
• A refund or abatement of interest, penalties, or additions to tax, caused by certain IRS errors or delays, or certain erroneous written advice from the IRS.
• A refund or abatement of a penalty or addition to tax due to reasonable cause or other reason (other than erroneous written advice provided by the IRS) allowed under the law.
• A refund of the penalty imposed under section 6715 for misuse of dyed fuel.
• A refund or abatement of tier 1 RRTA tax for an employee representative.
• A refund of a branded prescription drug fee.