You hate IRS penalties; everyone does.
We may have explained that we have at our disposal the IRS’s first-time abatement procedure, which is a valuable tool to defeat IRS penalties.
The IRS recently clarified that first-time abatement is truly “first-time”: It applies to only one tax period per taxpayer per return type. In addition, the preceding three-year period must now be 100 percent penalty-free (except for the estimated tax penalty).
If the first-time abatement is not available, we can use the reasonable cause procedure as a possible way to get your tax penalty abated.
To be clear, I would prefer that you don’t incur penalties so you can avoid the need for help in this regard. But if you do have such an incident, I’m here to help you.