When it comes to your taxes, the last thing you want to do is make a mistake. Throughout the year you should be constantly checking in on your finances, making sure you are on track to complete the necessary legalities. The IRS (Internal Revenue Service) expects all persons to be proactive when it comes to filing taxes, and holds everyone accountable for his or her own timeliness of the matter.
However, mistakes happen, and you may end up filing your taxes late, or maybe even not at all. While it is not by any means encouraged to put your taxes on the back burner, the IRS can be understanding of individuals who have made a one-time mistake such as this. That is why the First Time Penalty Abatement exists.
If you or any individual you know accidentally files your taxes late, or mistakenly does not file them at all, the IRS allows for the one-time abatement of any late or non-filing fee you may receive. Meaning, as long as you have filed your taxes correctly and on time for the past three years, the IRS will, just this once, let your penalty slide.
The First Time Penalty Abatement can be extremely helpful for individuals who have made a one-time mistake, and can result in quite a bit of money being saved in fees. However, it is important to note that this abatement does not keep you from incurring other consequences for not filing your taxes correctly. To avoid any other penalties or fees, speak with a trusted expert, like Evolve Financial, to make sure you are correctly filing all past mistakes, and all future claims moving forward.
The First Time Penalty Abatement can be a live-saver, but do not rely on it as an excuse to ignore your taxes. While it is a wonderful safety net that should be taken advantage of if needed, the best way to avoid any penalties from the IRS is to always file your taxes correctly, and on time.
