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Can you request IRS penalty abatement more than once?

Introduction:

You may already be aware with the term IRS penalty abatement if you have ever been subject to late tax fines. The Internal Revenue Service offers this relief option to lessen or completely remove penalties that have been applied to your tax account as a result of late filing, late payment, or non-deposit of taxes.
However, what if you have already made use of this lifeline? Can you make more than one request for an IRS penalty abatement? The IRS regulations, frequent misunderstandings, and calculated approaches that firms and taxpayers might use to pursue numerous penalty abatement requests will all be covered in this article.

Let's review the definition of IRS penalty abatement before we address the primary query.
Under the IRS penalty abatement program, taxpayers can ask for exemption from fines in certain situations. It is the cancellation of the penalties attached to the tax debt, not the forgiveness of the tax debt itself.
The following are the most typical penalty categories that qualify for abatement:

·         Not filing a penalty

·         Not paying the fine

·         penalty for non-deposit (for employers)

·         Usually, there are three methods to be eligible:

·         Abatement of First-Time Penalties (FTA)

·         Relief for Reasonable Cause

·         Statutory Waiver or Administrative Exception

Can You Make Multiple Requests for IRS Penalty Abatement?

✅ In summary, yes, although it varies according to the kind of abatement.
Let's dissect it:
1. First-Time Abatement (FTA): Once Every Three Years The IRS offers otherwise complying taxpayers a one-time administrative relief known as the FTA. However, if you have been in compliance since your last abatement, you can reapply for FTA after a three-year waiting period.
IRS Requirements for Repeating the FTA:
There were no fines for not filing, paying, or depositing during the three previous tax years.
Every tax return needs to be submitted.
Taxes must be paid in full or according to a payment plan that has been approved.
Therefore, you can submit more than one FTA request, but not within a three-year period.

2. Reasonable Cause: No Restrictions on Requests
You can ask for penalty abatement on the basis of reasonable cause more than once, even in the same year, unlike with FTA. The frequency at which this can be done is unlimited.
Among the reasonable causes are:

·         Death or severe sickness

·         Natural catastrophes

·         Theft, flood, or fire

·         Not being able to get records

·         Inaccurate tax professional advice

·         To be eligible, you have to:

·         Give a thorough explanation of the circumstances.

·         Demonstrate that you behaved with typical caution and attention.

·         Give proof or documentation to back up your assertion.

·         As long as each circumstance qualifies, you can use reasonable cause relief as frequently as needed, even if you have previously used FTA.

3. Statutory Waiver or Administrative Exception
Although they are less frequent, you may also ask for a penalty reduction under particular IRS policies or initiatives. Depending on the situation—such as inaccurate IRS notices or systemic errors—these can be accessible more than once.

How to Increase the Success of Several Requests
Here are some best practices to follow if you're filing for IRS penalty abatement more than once, particularly following a prior FTA:
1. Adhere to the rules Following the Initial Abatement
Keep up your tax compliance if you wish to re-qualify for FTA after three years. This implies:
timely filing of returns
Having a legitimate installment agreement or paying taxes
Preventing more sanctions

2. Develop Powerful Arguments for Reasonable Causes
with repeated requests with reasonable cause:
Write a succinct and understandable explanation.
Include any supporting documentation, such as court notices, hospital records, and declarations of natural disasters.
Be truthful and factual.
3. Make Use of IRS Letter Formats
Make use of a structured IRS letter template while submitting your abatement request. Incorporate:

·         Your name and contact details

·         The relevant tax period

·         The punishment that you are contesting

·         Justification for the request

·         Documentation supporting

Does Your IRS Standing Get Affected by Several Abatement Requests?
Not always. As long as
Your requests are valid.
You offer the appropriate proof.
You continue to comply in the future.
If you make more than one abatement request, the IRS does not punish you. Requests that are pointless or dishonest, however, may be reported and damage your reputation.
Can a Tax Expert Assist With Several Requests for Abatement?
Of course. A tax expert, such as a tax lawyer, enrolled agent (EA), or certified public accountant (CPA), can:
Determine your eligibility.
Write persuasive, obedient request letters.
Speak to the IRS on your behalf.
Reduce penalties by streamlining your tax procedures.

Tax Resolution Services At CPA Clinics:

CPA CLINICS’ Tax Resolution Services Team is here to address the government and state notices and debt for you. The Internal Revenue Service (IRS) has three main divisions related to audit, appeal, and collection activities. Revenue Officer (RO) is within the collection division, and a notice or contact from them could be a very serious matter as they have the authority to seize assets, levy income, and take bank accounts.

Conclusion:

The key question is answered: If you meet the standards or have a good reason, you can request IRS penalty abatement more than once.
Here's a brief summary:
First-Time Abatement: accessible once every three years, though it can be repeated.
Reasonable Cause: Any request with a good reason may be made indefinitely.
Situational but accessible statutory exceptions
Do not hesitate to apply if you have previously utilized FTA and are experiencing difficulties again as a result of a disease, calamity, or other legitimate causes. Providing correct information and appropriate documentation is crucial.