Does anyone know much about the First Time Abate, when if a taxpayer has been in compliance on filing and paying taxes for the last three years they can seek penalty abatement for late filing and payment penalties in the current year? The IRS doesn’t advertising this penalty abatement much at all. See this article in Accounting Today by Michael Cohn and the IRS’ response:
http://www.accountingtoday.com/news/IRS-taxpayers-tax-penalty-relief-64347-1.html?ET=webcpa:e6205:204199a:&st=email
Seems like the IRS isn’t using this as a compliance tool – if people pay and file on time for 3 years, you get a penalty abatement if you mess up the 4th year!
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