As the country adapts to the economic and social challenges that have arisen in recent years, the tax administration has considered various strategies to ease the financial burden on taxpayers. You may qualify for relief from the imposition of a fine through an administrative waiver if this is your first tax fine or if you meet other criteria allowed under tax law.

First-time fine relief is the most common administrative waiver for individuals and businesses. An administrative waiver is an administrative act that exempts an individual or entity from complying with a legal obligation or a requirement established by law under specific conditions. Penalties eligible for first-time abatement include:

1. Penalty for failure to file a tax return, when the penalty applies to:
   • Tax returns
   • Partnership returns
   • S corporation returns
2. Penalty for failure to pay, when the tax:
   • Is shown on the return as unpaid by the due date
   • Was required to be shown on a return, but was not done so, and that tax was not paid by the date shown on the notice or demand for payment
3. Penalty for failure to comply with deposit requirements, when the tax:
   • Was not deposited in the correct amount, within the prescribed time period, and/or in the required manner

The taxpayer may receive relief from the imposition of one or more of these penalties on a tax return during a single tax period. The IRS considers first-time abatement relief regardless of the amount of the penalty. A taxpayer may qualify for first-time penalty abatement if they have a history of good tax compliance. This means they filed the same type of return, if required, for the three tax years prior to the tax year in which they received the penalty and did not receive any penalties during the previous three years, or any penalties were waived for an acceptable reason other than first-time abatement.

You can request first-time penalty abatement even if you have not paid the full amount of tax on your return. However, the unpaid penalty will continue to accrue until the tax is paid in full. To request first-time abatement, follow the instructions in the notice you received from the IRS. If the IRS does not grant you first-time abatement, you can request a different type of penalty relief or review penalty appeal eligibility for next steps.

In conclusion, relief from administrative tax fines in the United States reflects a significant shift in the country's tax philosophy. With a focus on understanding and assistance, a new chapter opens, seeking not only to improve tax collection but also to build a stronger and more positive relationship between taxpayers and the State. For help with your tax returns, contact My Accounting Now at (786) 228-8689 or email us at info@myaccountingnow.com