Audit - First time abatement available for penalties?

Forum|Forum|3 years ago
March 9, 2023
2 replies
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A client (C Corp) of mine is currently audited because he did not file 1042S and did not pay withholding taxes. The IRS now requires failure to file/pay/deposit. I was wondering if the first time abatement relief would apply to this case? He was never late on anything before.

Or are first time abatements generally not granted during an audit?

Business

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BobKamman

Level 15

That's not the usual return where penalty relief is requested, nor is an audit the usual place where it is brought up. But I don't see anything preventing it. Are you working with a real auditor, or is this just faceless correspondence from a Service Center?

https://www.irs.gov/payments/penalty-relief-due-to-first-time-abate-or-other-administrative-waiver