If you are a first-time filer (or it is the first time you are facing a tax penalty), you may qualify for a First-Time Penalty Abatement. That means the IRS may reduce the penalty for not filing your taxes or not filing on time.
You might qualify if:
- This is the first time you’ve had to file a return or you’ve had no penalties for the previous 3 tax years
- You already filed any required returns or filed for an extension
- You’ve paid or made arrangements to pay any tax due
Keep in mind that even if you receive a penalty abatement, your penalty fees may continue to accumulate until you fully pay off your tax bill. You can learn more about penalty abatement on the IRS’s site.